In a revealing social media post, Zerodha Co-Founder and CEO Nithin Kamath shared some fascinating insights into the state of equity delivery trades in India. According to Kamath, Mumbai and Ahmedabad, two prominent business hubs in the country, are responsible for a staggering 80% of the total turnover in equity delivery trades. This dominance underscores the significant role of Gujaratis, colloquially known as “Gujjus,” who are widely recognized for their financial prowess and strategic business practices.
Key Highlights:
The Role of Mumbai and Ahmedabad in Equity Delivery Trades
Kamath pointed out that Mumbai, the financial capital of India, contributed 64.28% of the total cash trade turnover on the National Stock Exchange (NSE) in November 2024. This was significantly higher than its share of 27.02% on the Bombay Stock Exchange (BSE). The dominance of Mumbai highlights its role as the epicenter of India’s stock market activities.
Ahmedabad and Mumbai account for 80% of equity delivery trades. Let that sink in. Essentially, the real money is with Gujjus 😬
— Nithin Kamath (@Nithin0dha) January 6, 2025
Btw, Gujarat accounts for just 8% of the total registered investors, and the share has been falling. pic.twitter.com/yljNeW8xfN
Ahmedabad, the second-largest contributor, accounted for 17.53% of the total cash trade turnover on the NSE and 27.31% on the BSE. Together, the two cities accounted for nearly 82% of the cash trade turnover on the NSE and 44.55% on the BSE, showing their massive influence over the Indian stock market landscape.
Gujarati Community’s Influence on the Market
The Gujarati community’s strong business acumen is well known, and Kamath’s post emphasizes how this has translated into significant success in stock market investments. Interestingly, despite Gujarat accounting for only 8% of the total registered investors, it continues to punch well above its weight in terms of trading volume. Kamath also humorously pointed out that the remarkable share of Ahmedabad in stock market activities is somewhat surprising, given the decreasing number of investors from the state.
Investor Distribution Across India
According to data from the NSE, India had 107 million registered investors as of November 2024. Among these, Maharashtra had the largest share with 16.5% (17.7 million), followed by Uttar Pradesh with 12.1 million investors. Gujarat held the third spot with 9.5 million registered investors, while West Bengal and Rajasthan accounted for 6.2 million and 6.1 million investors, respectively.
The Next Largest Cities in Equity Delivery Trades
After Mumbai and Ahmedabad, Bengaluru and Kolkata hold significant positions in equity delivery trades. Bengaluru accounted for 3.97% of the total equity delivery turnover on the NSE, while Kolkata came in third with 2.5% of the total turnover on the BSE.
Reactions to Kamath’s Post
Kamath’s post generated considerable discussion among notable figures and social media users. Kunal Shah, founder of CRED, humorously responded with a quote from the popular OTT series “Scam 1992”, emphasizing the risk-taking mentality in the stock market. Other users praised the strategic approach of the Gujarati community, which is known for its investment savvy and strong financial strategy.
The significant contributions of Mumbai and Ahmedabad to India’s equity delivery trades underscore the dominant role of the Gujarati business community in shaping India’s financial markets. Despite accounting for a small percentage of the total registered investors, these cities have managed to maintain a massive market share, highlighting the sharp financial acumen of the region’s investors. As India’s stock market continues to grow, the influence of these two cities and their communities remains undeniable.
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