“Revenue to the industry comes from active traders. While some of them have more skills, some rely on luck. Most traders become inactive when they cannot earn revenues. That means the industry needs consistent traders to generate revenue, ”said Nitin Kamath.
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The market for new, active traders always wants to be bullish. If the market goes down then so do the users. As a result, active traders will decline and revenues will fall. Kamath also cited an example of a decline in retail broking in line with market sentiment. Robinhood Markets Inc., an American financial services company, recalls that the company’s market cap has fallen from a high of $ 80 billion to a current $ 6 billion.
Meanwhile, after the Corona lockdown, the number of users and revenues for Zerodha increased tremendously. Many young people at work from home have started investing in the stock market through Zerodha, an online trading platform. IT employees in particular have been increasingly interested in the stock markets.
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