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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Once the preserve of big, institutional investors, it is now being embraced by retail investors who view it as a casino opportunity. But will the regulatory vacuum crash the party?
Editor's note: Utsav Kapoor, a 28-year old IIT graduate and resident of Chandigarh, was hit by a double whammy during the first phase of the pandemic last year. He lost his high-paying job and his bet on quick gains from the stock market went horribly wrong; his entire savings of Rs 25 lakh got wiped out on the new stock market fad of retail algorithmic trading, or retail algo. His account and subsequent complaints to the markets regulator and exchanges were widely circulated on WhatsApp groups. They were met with equal parts outrage and ridicule. The proponents of retail algo called them blatantly false, sponsored by the big boys (read: institutional investors); the more circumspect found merit in the concerns that had been flagged. Clearly, the blooming market trend had retail investors divided. The ones with a slightly better understanding of retail algo or those who had made money during the bull run (still on, by the way) were all praise for it and the not-so-lucky ones were looking at it with suspicious eyes. But first things first. Retail algo allows retail …
The watchmaker dominates the mass segment, but its relevance lies in going upmarket.
As India’s largest stock exchange heads to the public markets, it may need to rethink its excessive reliance on transaction revenue.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
