Lucknow Wealth Management：Youth town, trapped in the Indian stock market

Content source | Wall Street

In 2023, the Indian stock market set a record eight -year rising record, with a market value of exceeding $ 4 trillion, and from the perspective of trend, it continued to perform strong performance.

For the fundamental analysis of the rise of the Indian stock market, it was seen that VIP pointed out in the article "India's Stock Market Lying on the Red", which is indeed a fundamental support.Lucknow Wealth Management

But in addition to the support of fundamentals, it is worthy of attention to the proportion of derivatives in the Indian stock market.From the perspective of global horizontal comparisons, the name value of derivatives in the Indian stock market exceeds 400%of the cash, far exceeding the second place in South Korea.

South Korean retail investors are famous for high risk preferences.As a small population, South Korea's KOSPI200 index futures trading volume once ranked third in the world, and options trading volume ranked first in the world.Now, in front of the Indian stock market, it is more than one mention.

Secondly, in terms of transaction amplitude, the leverage trading of the Indian stock market is still in the process of rapid growth.Showing a year -old growth trend.

And Indian investors prefer leverage trading, mainly include the following points:

Young people are gambling strongBangalore Investment

First of all, in terms of the age structure of the entire country in India, the overall is quite young. In 2022, the average age of India ’s national population was only 28 years old, and society was in a high -speed period, but the per capita income was low.Dollar.

There are many young people, low income, and wealth start to grow.what to do?Then go to the stock market to add leverage.The risk appetite of young people is higher than middle -aged and elderly people.

Regardless of whether it is 2000 in South Korea or Japan in 1970, the high population of the light population was actually conducive to rising market valuation and rising investment activity.

According to Axis Capital, the Indian stock market options transactions can provide investors with 400 times leveraged transactions.

This attracted a large number of Indian town youths. According to data from a large -scale discount trading platform in India, 65%of customers were the first transaction, 60%of new accounts came from residents of small town, and the average age was 29 years old.

In terms of performance, the Indian stock market is indeed remarkable.From 2016 to the present, the annual line has risen every year.In terms of the world's mainstream markets, there is no.

Even as strong as Nasdaq, there are many subjects, and they have two years of closing and falling in the same period, respectively in 2018 and 2022.Especially in 2022, the Nasdaq index fell more than 33%.

The long -term rise in the Indian stock market has also improved the expectations of investors' market rising, and firmly believe that the Indian stock market is the motivation of Taiwan.

Under the intense rise expectations, the information of investors participating in market games has been deepened.

Especially for small and medium -sized investment, generally prefer depth of virtual duty options.The amount of investment is small and can achieve small.

The rapid penetration of the Internet

The rapid development of the Internet has provided significant convenience for time -powered transactions.Especially in the infrastructure field, India was originally weak. In the early years, the model of relying on telephone transactions and business halls has been broken.

There are many mobile phones in the rural population of India to place an order.From the perspective of Internet penetration, especially after the outbreak of the new crown epidemic in 2020, India's Internet population has accelerated.During the same period, after 2020, Indian derivatives transactions ushered in an explosive growth.

It is estimated that by 2024, the Internet population will reach 1.4 billion, realizing "full coverage" in the true sense.

Reality is cruel

But the reality is cruel. As a zero -sum game, the option transaction is generally losing money.

According to the analysis of official Indian regulatory agencies, in the field of stock futures options, in 19 and 22, 9 traders were losing money.

In 2022, the average loss amount of the optional loss account was 50,000 rupees, equivalent to $ 600.India's per capita GDP is $ 2400.

If the basic living expenses are deducted, the basic living expenses, and the Indian workers will basically give everything to the Indian stock market.

Hyderabad Wealth Management