Changing Equity Market Structure in India : Rise of Retail Shareholders

Abstract

“India, with its young workforce and with strong fundamentals is taking its steps from being a developing economy to a developed economy. This changes in economy is getting reflected in movement of Indian Equity Markets i.e. rising retail equity holders. India’s middle class is rising as a strong force in Indian Equity markets since last few years. This increasing participation by retail shareholders in stock market of India seems to be the biggest change observed in structure of Indian Equity Markets in recent years. Earlier selling by foreign institutional Investors (FII) used to decide the direction of market. Now a days the outflows of FII is countered by inflow by Domestic Institutional Investors and retailers. This rising participation by retailers, the various reasons behind this rise, the correlation of this change with India’s economic growth and the further impact of this change on Indian Equity Markets is discussed in this article.â€