Homemarket News

    Retail market participation rises as new product offerings become the key

    market | IST

    Retail market participation rises as new product offerings become the key

    Mini

    Nithin Kamath, Founder and CEO at Zerodha and Ajay Menon, CEO of Broking and Distribution at Motilal Oswal Financial Services discussed the outlook for the broking business for the rest of this financial year in an interview to CNBC-TV18.

    Average daily turnover and average traded size declined in June compared to April on the NSE. However, retail participation has been on the rise with June seeing the largest customer addition.
    Zerodha, the broking platform says that it has seen retain interest rising since the start o this year with approximately 3 lakh accounts being added every month since January.
    Nithin Kamath, Founder and CEO at Zerodha and Ajay Menon, CEO of Broking and Distribution at Motilal Oswal Financial Services discussed the outlook for the broking business for the rest of this financial year in an interview to CNBC-TV18.
    Both believe that a lot hinges on new products and the attractions they can offer.
    According to Kamath, the product offering is what sets one apart and that realization has gotten a lot of incumbents to partner with newer age startups to build niche experiences.
    “It is just getting started. We will see a lot more of this,” he said.
    The interest in new products is rising by the day.
    "People want to participate in this trading business and the new products help them in channelizing the money in the right direction where the volatility is less because the fund managers are there to manage the products in a much more professional way,” Menon added.
    There is still potentially a large market that hasn’t invested in the stock market in India.
    "When we look at our target market size, we believe that 7-8 crore Indians can potentially invest in the markets. Today maybe 3-4 crore Indians have a Demat account. So potentially there is still an opportunity to double the market size,” Kamath explained.
    The June market was a low volatile month and trading volumes also took a hit.
    "Trading volumes are almost always directly proportional to the volatility in the markets and hence the lower trading volumes,” said Kamath.
    Menon sees some pressure on the liquidity side based on the 100 percent margins.
    "It is surely liquidity-driven value which we can see and there will be some amount of fatigue on the month-on-month basis the way we have been growing. Margin is increasing on a quarter-on-quarter (QoQ) basis. So September will be at 100 percent. We see there will be some pressure on the liquidity side based on the 100 percent margins,” he said.
    For the full interview, watch the accompanying video.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    next story

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng