The Indian stock market has recently set new records, with both the Nifty 50 and Sensex indexes hitting record highs. This round of growth is not only due to the fundamentals and the favorable factors of Modi's re-election, but also driven by the hot IPO market. According to statistics, the average increase in new Indian stocks this year has reached 57%, far exceeding the average level in the Asia-Pacific region, attracting a large number of retail investors to actively participate.
Retail investors are more enthusiastic than ever. They have not only broken the traditional concept of "buy high and sell low", but also started to boldly buy at the bottom, diverting funds originally planned to be invested in the real estate market into the stock market. According to data from Prime Database Group, in the 36 IPOs on Indian exchanges this year, retail investors subscribed for a total of about US$10.6 billion worth of stocks, with an oversubscription multiple of more than 12 times. For example, the number of retail investors subscribed for Exicom Tele-Systems, an electric vehicle charging company, reached 120 times the number of shares issued, and the stock price soared nearly 230% after the IPO.
Experts point out that many retail investors tend to do short-term trading of new stocks, seeking quick profits rather than long-term holding. At present, all individual quotas for new stock subscriptions in the Indian market have been filled. In the next few months, at least 15 companies will prepare for IPOs in India, and the total amount of funds raised is expected to reach US$11 billion.
This investment trend is particularly evident among the younger generation. Vineet Arora, manager of Singapore's NAV Capital Emerging Star Fund, said many young investors he has come into contact with said they do not want to buy real estate and would rather put their money into the stock market.
This is also confirmed by a report by brokerage firm Motilal Oswal, which points out that the unprecedented rise of Indian stocks in the past three years was mainly due to the surge in stock funds from retail investors. At present, the asset management scale of Indian mutual funds has reached a new high, with retail accounts holding more than half of the assets, and funds have flowed into stock funds for 40 consecutive months.
Market observers believe that with the end of the Indian general election and Modi's re-election, the Indian stock market is expected to continue to rise driven by infrastructure and manufacturing. However, investors also need to be alert to market risks and remain cautious. #美联储何时降息？ #美国大选如何影响加密产业？
