'Real stock market money is with Gujjus.. Let that sink in': Nithin Kamath

Nithin Kamath: Ahmedabad and Mumbai account for 80 per cent of equity delivery trades, Nithin Kamath said on X

Nithin Kamath, stock market news: Mumbai and Ahmedabad, the two business-centric cities in India, account for nearly 80 per cent of equity delivery trades, discount broking firm Zerodha Co-Founder and Chief Executive Officer Nithin Kamath said in a social media post on Monday.

 

"Ahmedabad and Mumbai account for 80% of equity delivery trades. Let that sink in. Essentially, the real money is with Gujjus," Nithin Kamath said in a post on social media platform X, formerly known as Twitter.

 

Notably, Gujjus – a term used for Gujaratis – are known for their business acumen and strong financial position.

 

Sharing data based on city-wise distribution of cash trades in India stock markets, Nithin Kamath pointed out that Mumbai accounted for 64.28 per cent of the total cash trade turnover in November 2024 on the National Stock Exchange (NSE).

 

Mumbai, the financial capital of India, accounted for 27.02 per cent of total cash trade turnover on the BSE.

 

Cash trades involve buying or selling of stocks using cash funds. Investors, here, take delivery of the said securities in their demat account.

 

Ahmedabad, one of the prominent cities of Gujarat, meanwhile, was second in command. As per the data, Ahmedabad accounted for 17.53 per cent of the total cash trade turnover on NSE. It was 27.31 per cent on the BSE.

 

Together, Mumbai and Ahmedabad accounted for nearly 82 per cent of the total turnover in cash trades on the NSE. The two cities cornered 44.55 per cent share on the BSE.

 

Kamath also pointed out that the remarkable share of Ahmedabad comes even as Gujarat accounts for just 8 per cent of the total registered investors. This market share, too, has been falling, Kamath quipped.

 

India’s investor base

 

According to the data provided by the NSE, the exchange had 107 million registered investors at the end of November, 2024.

 

State-wise, Maharashtra had 16.5 per cent (17.7 million) investors. This was followed by Uttar Pradesh (12.1 million investors), Gujarat (9.5 million), West Bengal (6.2 million), and Rajasthan (6.1 million).

 

What is the share of other cities in cash trade?

Meanwhile, after Ahmedabad and Mumbai, Bengaluru accounted for the most delivery-based trades with a share of 3.97 per cent on the NSE. On the BSE, Kolkata was the third largest city for delivery- based trades, at 2.5 per cent of the total turnover of cash trades.

 

Kunal Shah, others react

Reacting to Nithin Kamath’s post, Kunal Shah, founder of CRED, said “Risk hai to Ishq hai”, a line borrowed from OTT series ‘Scam 1992’ which was based on the infamous Harshad Mehta scam.

 

Another user, Shveta, said “Investments require a blend of patience and substantial resources, and when it comes to these qualities, the Gujarati community shines brighter than most in India. Their strategic approach has allowed them to navigate the complexities of investing with skill and perseverance”.

 

Another user, Nishant Bhardwaj, said “Gold and diamond businessmen trying hard to create a passive source of income”.