‘Retail interest in stocks to spur infra’

Increasing retail participation in the stock market — assuming it is here to stay — could enable a larger resource pool for financing India’s infrastructural requirements, Soumya Kanti Ghosh, Group C

Increasing retail participation in the stock market — assuming it is here to stay — could enable a larger resource pool for financing India’s infrastructural requirements, Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India (SBI) said in a report. “Lower rate in other saving avenues amidst the low interest rate regime has led to greater interest by individuals in the stock market,” he said in the report by SBI’s Economic Research Department. “Another reason could be the significant increase in global liquidity,” he added. “Additionally, the pandemic which has resulted in people spending more time in their homes might also be another reason for individuals’ tilt towards stock market trading. However, it is yet to be seen if this increasing retail participation is transitory or the beginning of long-term behavioural change?,” he added.