Retail investors raise stakes of over 170 companies in Q1

New Delhi: New-age retail investors have raised the stakes of over 170 companies by investing in the 1st Quarter of the financial year 2020. More than 11 companies have gained a growth of 100% until now.

SEBI recently published data highlighting the record of 2.4 million Demat accounts in the June Quarter. Out of which, 5.6 percent of total accounts were of retail investors.

By the end of June 30, approximately 3.9 million accounts were registered.

Stocks of companies like Eveready Industries, Aarti Drugs, AGC Network, Dixon Technologies, Granules India, and Suzlon have doubled up.

Tejas Khoday, CEO and Co-Founder, FYERS said, “of the 12 stocks under consideration, 3 are penny stocks, 5 are going through turbulent times due to various reasons. Investors cannot consider these stocks worthy of long-term investment based on current financial strength or promoter pledges or poor financial performance.”

Data from AceEquity stated that the retail investors have raised the stake of 173 companies out of which 80 percent of them were micro, small, and mid-cap space companies.

The remaining 17 percent were of large-cap space having a market cap of more than Rs 20,000 cr.

Siddharth Panjwani the Chief Strategy Officer of Pickright technologies told Moneycontrol that “while the data shows that retail investors preferred small and midcaps – a proxy for higher growth, these were the very same stocks which were beaten down the most in the March bottom.”

While the entire nation was thinking that COVID-19 may lower the share market, the new-age retail investors saw an opportunity and invested in the market. They knew that these stakes will yield them higher returns in the future when the lockdown is uplifted.

The point of consideration here is whether the retail investors have caused the rise in the shares of these companies or they have simply invested because the shares of these companies were rising.


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