Zerodha co-founder and chief executive officer (CEO) Nithin Kamath shared a stark warning for the Indian stock market amid the current bloodbath that ‘if markets fall sharply, D-Street investors might stay out of the market for years—just like they did after the 2008 global financial crisis.’ According to data shared by Kamath in a post on ‘X’ (formerly Twitter), India’s net flows into equity-oriented mutual fund (MF) schemes dipped sharply between 2008 and 2014.
However, Kamath also highlighted that India’s retail investors have consistently been net buyers of equities in the last five years, starting from the COVID-led market participation. According to the India Inc leader, retail investors have been the backbone of the Indian stock market’s rally between 2020 and 2024 after consistent ‘buying into dips’ despite external risks and global headwinds.
“One of the crazy things about the last five-odd years is that retail investors have consistently been net buyers of equities. Whether they’ll continue to buy the dip is anybody’s guess. “By the way, if markets fall sharply, investors might stay out of the market for years—just like they did after 2008,” said Kamath in his post on ‘X’.
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