The market has been sliding since its peak in October 2024, and finally correcting. @Meher_Smaran keeps asking, “What’s the bottom? When does this reverse?” Honestly, we’re all just guessing, no one really knows.
Not just that, there’s a massive drop in volumes and the number of traders.
The markets are finally correcting. Given that markets swing between extremes, they can fall more just like they rose to the peak.
Here is the trading volume chart. Across brokers, there’s a more than 30% drop in activity. Combined with the true-to-market circular, we are seeing degrowth in the business for the first time since we started 15 years ago.
This drying up of volumes shows how shallow the Indian markets still are. The activity is more or less among those 1-2 crore Indians.
✓ Markets have given good returns and that’s why FIIs are cashing out ✓ Retail is the new institution ✓ What’s some % points? STCG, LTCG, STT increase. That’s nothing. ✓ Trading? Huh. What’s that? Work in factories. ✓ You’re making a loss of ₹100 on a ₹500 option? Let’s make it triple. Now, you lose ₹300 on ₹1500 options. ✓ You didn’t make a profit, still we’ll snatch some of your capital - STT
We should be very grateful for such a great FM and SEBI ex-chief. We are witnessing one of the historic moments that we might not ever see again.
A simple sustained drop in price/volumes in the markets
continues to be the most effective method
to get the point across better than dozens of discussions on
“Past performance is not a guarantee for future”
Equity vs. Debt
Types of risks.
Smart money has adapted.
This includes individual/retail folks who understand the volatility and risk of markets.
Those who hadn’t internalized the inherent risks,
or those who thought what they did on a day can be simply repeated 200times in a year,
hopefully they use this opportunity to
learn their lesson, don’t panic-sell, nor enter into extremely risky positions.
stop feeling entitled to unconditional gains
stop trying to pattern-match and find things to blame.
BTW, a “Slow news” day on tradingQnA, that we are discussing this ?
@Meher_Smaran keeps asking, “What’s the bottom? When does this reverse?” Honestly, we’re all just guessing, no one really knows.
