Retail investors who were led from Covid to the market at the time of the outbreak of Covid are considered the worst affected by the market chaos. Those who could not make a profit and on average during the correction period since September 2024 to influence the losses the most on average.
“One thing that the global stock market does not like is uncertainty. From today, the level of uncertainty in the world is at its peak,” says Apurva Chaturvedi, co-chairman, IMC Young Leaders Forum.
“If there is no clarity about what the future has in store, investors like to keep and keep the means ready for the efforts when levels of uncertainty decrease. And this is why the markets are in a free fall,” he added.
Retail participation has been an important support system that stimulates positive trends on the stock market for the past five years. From 4 Crore Demat accounts in 2020, the number went to 14 crore in 2024 with more than 10 crore new investors who joined the capital market during this period.
According to Data from January 2025 of Amfi, a decrease of 3.6% was observed in the influx of the Equity Investment Fund, a total of £ 39,687 Crore. Net investments, however, remained positive for 47 months. The monthly intake of Systematic Investment Plan (SIP) in MFS fell to a low-point of three months of £ 25,999 Crore in February as market sales increase, according to AMFI data, which indicates nervousness among retail investors.
“The pain in the market is realistic, and you can feel it across the board of seasoned investors to those who came to the rally in 2020. Many retail investors are now on loses of 20-30%, confronted with their first real-market crash,” said Trivesh D, Coo, Tradejini.
“The psychology of the loss begins hard, especially for those who had their savings in expectation who expect a steady growth. But this cycle is not new buying high in euphoria and selling low in panic has been around for decades,” he said.
“We are in a phase in which caution is more important than trust. Investors can consider raising some money when the market shows a short stability and then gradually deploying it, not all at the same time. Nobody can timen the bottom perfectly, so it’s better to stay strategic,” said Mr Trivesh.
“On days like today, with wild swings, it is best to stay calm. Do not sell panic. Do not hurry to buy. Let the market settle. There may be opportunities in financial data, infrastructure, cement, perhaps even selectively in pharmaceutical or real estate as the worldwide jitters,” he added.
“This feels like a wider capitulation phase. Retail investors may be shot early. SIPs of investment funds already see repayments and pause signals. When investors see red on their statements, they tend to hesitate and that is understandable,” he said that it is now checking the control of the capital.
Published – 07 April 2025 10:32 pm is
