‘Markets Are Finally Correcting,' Says Zerodha’s Nithin Kamath

Zerodha co-founder Nithin Kamath said on LinkedIn that Indian stock markets are witnessing a significant correction.

“The markets are finally correcting,” he wrote. “Given that markets swing between extremes, they can fall more just like they rose to the peak.”

While he refrained from making market predictions, Kamath remarked about the broking industry’s downturn. “We are seeing a massive drop in terms of both the number of traders and volumes,” he said.

According to the Zerodha boss, trading volumes across brokers have distinctly declined over 30%.

“This drying up of volumes shows how shallow the Indian markets still are,” Kamath said hinting that market activity largely remains confined to just 1-2 crore Indian investors.

“By the way, if this continues, the government will not make even Rs 40,000 cr from STT in FY 25/26, at least 50% below the Rs 80,000 cr estimate,” Nithin Kamath added.

You can read Nithin Kamath's LinkedIn post here.

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Ashneer Grover & others react

Ashneer Grover commented on this post saying, “High time for government to abolish Capital Gains Tax.”

Anirban Sengupta, a startup founder remarked, “As per a latest report only 13-14 crore indians have enough money for discretionary spends. 2Cr implies almost 15% of this number. Which is a decent penetration ?”

Another professional wrote,” Markets do not become deep just because more people show up. They become deep when people stay.”

Another individual said, "The stock market always corrects itself because it thrives on attracting fresh blood, which brings in new volume. While government policies do have an impact, momentum and market sentiment play an even bigger role in drawing retail investors.”

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