When the equity market hits a new record: Investing in equity
Equity trading is now in its seventh year of existence, with the markets having seen an increase of nearly 200% in the past six years.
In the past three years, the trading volumes on the Indian stock exchange have jumped by almost 3,500%, according to research firm Equilar, which has seen over 2.2 million orders for equities.
Equilar has been tracking the demand for equity trading for more than two years and has compiled a list of the most popular equities on the market today.
This is not the first time that the demand has increased in the market, but equities trading has seen a boost in recent months as the Narendra Modi government’s decision to lift restrictions on foreign ownership of stocks has been implemented.
This has seen demand for stocks rise in the last few years and equities are now more popular than stocks in the UK, the US and China.
While stocks in India are still trading at around 25-30% of their value, there is a growing awareness among the traders in the country that equities have a strong future and are worth investing in.
“As we are seeing more and more demand for equity trading in the markets, we are finding a growing number of people interested in equities in general and in equity investments in particular,” said Amit Kumar, chief executive of Equilar.
“We are also seeing people investing in equates that are not listed on any stock exchange, so it is a good place to start investing.”
Equities trading was also the reason behind the rise in demand for funds in the capital markets in the recent past, said Amit.
The market is now worth $3 trillion, and the demand is increasing as people look for ways to invest.
In the last three years the demand of equity funds has increased by nearly 1,000% and the market is expected to grow by another 500% in four years, according to Equilar estimates.
The growth in demand from Indian investors has been on a similar trajectory to that of the UK and the US.
When the markets hit a new milestone, India’s capital markets witnessed a surge in demand.
The market was trading at over $3tn in 2016, and equations have grown by more than 100% over the past five years.
This demand for money in the Indian capital markets has helped to boost demand in the equity markets and has helped the country become one of the top three global markets for equity investors.
According to a report by The Economist Intelligence Unit (EIU), Indian investors are now investing in an average of $7,000 in equites every day.
The amount invested in equities in India was $12.4 billion in 2016 and is expected by 2020 to reach $28.7 billion.