India’s stock market rally looks like a self-sustaining Ponzi scheme

The Indian retail investor has come to the stock market party like never before. Data from the National Stock Exchange’s (NSE) ownership tracker shows that as of March 2024, individual investors and domestic mutual funds (MFs) owned 38% of the floating stock of companies listed on the NSE.

The Indian retail investor has come to the stock market party like never before. Data from the National Stock Exchange’s (NSE) ownership tracker shows that as of March 2024, individual investors and domestic mutual funds (MFs) owned 38% of the floating stock of companies listed on the NSE.

In comparison, this figure was at 33.5% in June 2021. Floating stocks are shares that are available for buying and selling on stock exchanges, after leaving out shares owned by promoters and others who hold them closely.

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