You are here: Home » Markets » News
Business Standard

Q&A: Retail investors now a significant force, says IIFL's Nirmal Jain

In this exclusive interview, Nirmal Jain, founder & chairman, IIFL group, talks about retail frenzy in the stock market and how the retail broking business is faring against this backdrop

Topics
Equity markets | Retail investors | IIFL Group

Puneet Wadhwa  |  New Delhi 

Should we be concerned about the runaway rally in right now? Or should we be happy that have tasted blood and latched on to the equity bandwagon? And how is the retail broking business faring against this backdrop? Nirmal Jain, the founder & chairman of the IIFL group, gave answers to these and many other questions in an exclusive interview with Business Standard’s Puneet Wadhwa.

Here are the highlights of the Q&A: Are you concerned about the runaway rally in the or are you happy with how have latched on to equities?

  • Equity market rally and corrective phases are equally scary
  • Long-term investors in equity make more money than in other avenues
  • Retail participation encouraging
  • Foreign investors’ equity ownership rose at the cost of retail investors
  • have now become a significant force to reckon with
So how is retail broking business doing? Have discount brokerages made life difficult for traditional ones?
  • Discount broking business has seen a rapid addition of customers
  • Millennials more on the discount broking platform
  • Full service and discount broking businesses will co-exist
Sebi recently suggested the T+1 settlement structure from January 2022. Is the infrastructure ready with brokers?
  • Infrastructure needs to be ready with a number of participants
  • Challenge is with those who operating in different time zones
How is the credit off-take shaping up across segments?
  • Credit off-take is picking up, especially in the festival season
  • See significant pick-up in the second half of 2021-22
Will this demand sustain post the festival season?
  • Demand will sustain, and probably pick up
  • Real estate segment is picking up; low interest rate regime key
  • Gold loan and SME loan segments should also do well
  • Covid third wave is a threat
With the RBI giving licences for small finance banks, is the lending space becoming overcrowded?
  • Capital gives power to leverage
  • Economy is doing well
  • A few licences will not impact demand-supply dynamics much
What are the risks to the economy and hence do you foresee over the next six months?
  • Risks: Geopolitical, over-leverage, easy money policy
What's your advice to investors now?
  • Diversify and remain selective
  • The rally has been broad-based
  • Avoid speculation and avoid being greedy

Watch Video

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, October 18 2021. 10:19 IST
RECOMMENDED FOR YOU
.