Retail Investors Overtake FPIs in Indian Stock Market Dominance

In a groundbreaking development for India's financial landscape, retail investors have outpaced Foreign Portfolio Investors (FPIs) for the first time in 20 years, significantly reshaping the country's stock market dominance. This trend reflects an expanding base of local investors who are increasingly confident in the domestic economy, according to National Stock Exchange (NSE) Managing Director and CEO Ashish Kumar Chauhan.

Speaking at the 16th ASSOCHAM Capital Market Conference, Chauhan emphasized the monumental growth in retail investment over the years, noting an increase from fewer than 10 lakh investors in 1994 to over 11 crore today. This surge represents a 110-fold jump, underscoring the deepening involvement of retail investors in India's capital markets. Chauhan believes India's financial markets are poised to finance the country's growth as local money increasingly enters the fray.

Additionally, Chauhan shed light on India's evolving role in the global economic landscape, noting that amidst geopolitical shifts, India is emerging as a compelling alternative for manufacturing investment. Major companies like Apple and Samsung have transitioned parts of their supply chains to India. On the status of NSE's Initial Public Offering (IPO), Chauhan revealed that they are awaiting a No Objection Certificate from SEBI, marking a crucial step towards preparing the Draft Red Herring Prospectus.

(With inputs from agencies.)