Mumbai, Bollywood Fever: The number of intraday traders in India’s equity cash market surged by 300% between fiscal years 2019 and 2023, but seven out of ten traders were making losses by 2023, according to a study released by the Securities and Exchange Board of India (SEBI) on Wednesday.
The study highlighted that traders younger than 30 years old comprised nearly half of all intraday traders in fiscal 2023 but represented three-fourths of the lossmakers. SEBI’s data indicated that 80% of traders who executed more than 500 trades in a year ended up with losses.
India has been cautioning against the risks of speculative trading by retail investors. Reflecting these concerns, the government recently increased taxes on gains from equity investments and derivative transactions. The tax on gains from stocks held for less than one year was raised to 20% from 15%, and for those held for more than one year to 12.5% from 10%.
In January of the previous year, SEBI reported that nine out of ten stock derivative traders incurred losses. The latest study aims to further enhance awareness among individual traders about the inherent risks of intraday trading in the equity cash segment.
“The study is expected to enhance awareness among individual traders about the risks involved in intraday trading in the equity cash segment,” SEBI stated on Wednesday.
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