Small investors may bear brunt of crash

Data shows retail investors pumped ₹21,900 cr during bull run

- Ram Sahgal

Retail investors who entered the market in the past two months through September will be worst affected if the broader market indices pull back further from current levels amid surging bond yields in the US and the Israel-Hamas war in West Asia.

According to National Stock Exchange (NSE) data, retail investors who directly buy and sell shares on its secondary market made net purchases for a second straight month in September, amounting to ₹7,500 crore. These purchases came on top of the ₹14,400 crore they invested in the previous month, resulting in a cumulative investment of ₹21,900 crore over these two months. This came after net sales of ₹21,400 crore from April to July.

Market experts warned that those entering the rally at the peak, driven by a fear of missing out (FOMO) and seeking quick gains, will likely bear the brunt of a deeper cut in case of a more substantial market downturn.