In recent discussions surrounding the stock market in India, billionaire Nithin Kamath, co-founder of the leading trading platform Zerodha, has made headlines with his astonishing revelations about wealth distribution among investors. He highlighted that a significant portion of the country’s real wealth is concentrated within the Gujarati community. By sharing eye-opening statistics about equity delivery trades on his social media account X, Kamath emphasizes the role of Gujaratis in the financial landscape of India. Let’s delve into these findings and explore their implications on market dynamics.
Gujaratis Hold Significant Wealth
Nithin Kamath’s insights reveal that although Gujarat constitutes only 8% of total registered investors in the country, this share is steadily declining. He pointed out that the city of Ahmedabad and its financial ecosystem contribute significantly to equity delivery trades. This demographic trend underscores the strong entrepreneurial spirit of Gujaratis, who are known for their active participation not only in India but also on an international stage.
Equity Delivery Trade Concentration
In a post shared on social media, Kamath highlighted that Ahmedabad and Mumbai together account for a staggering 80% of equity delivery trades in India. This statistic underlines the strong market presence of Gujarat’s business community.
Ahmedabad and Mumbai account for 80% of equity delivery trades. Let that sink in. Essentially, the real money is with Gujjus 😬
Btw, Gujarat accounts for just 8% of the total registered investors, and the share has been falling. pic.twitter.com/yljNeW8xfN
— Nithin Kamath (@Nithin0dha) January 6, 2025
City-wise Contribution to Equity Delivery Trades
Kamath’s post also included a detailed breakdown of city-wise contributions to equity trades based on data from the BSE and NSE cash segments. According to the data:
| City | Contribution (%) |
|---|---|
| Mumbai | 64.28 |
| Ahmedabad | 17.53 |
| Bengaluru | – |
| Vadodara | – |
| Bhubaneswar | – |
| Chennai | – |
| Ernakulam | – |
| Coimbatore | – |
| New Delhi | – |
| Guwahati | – |
| Hyderabad | – |
According to the data shared by Kamath, during November 2024, Mumbai dominated equity delivery trades with 64.28% market share while Ahmedabad contributed 17.53%. This trend indicates the growing reliance of investors in these two major cities for trading activities.
IPOs and Retail Investor Participation
Further analyzing the importance of Gujarat, Kamath highlighted the state’s remarkable market participation, especially in Initial Public Offerings (IPOs). Retail investors from Gujarat reportedly secured 39.3% of the allocation in retail categories, emphasizing their critical role in the stock market.
Geographic Distribution of IPO Investors
The geographical distribution of IPO participants shows that approximately 70% of investors hail from four primary states: Gujarat, Maharashtra, Rajasthan, and Uttar Pradesh. This statistic reflects the concentration of financial acumen and investment activity in these regions.
As Nithin Kamath’s observations reveal the depth and breadth of wealth among Gujaratis, it also raises questions about the future dynamics of the Indian stock market. Understanding these trends is crucial for investors and analysts alike as they navigate an evolving financial landscape.