New investors, algos and a bull market

'I believe there will be many Utsavs when the market becomes volatile and algos go haywire', says the author

Since early June 2020, the stock market has been on a wild bull run, which has drawn in more retail investors than in the past 30 years, with time, money, and the opportunity to play the market. For the first time in decades, retail investors as a group dominate cash market trading, which has a volume of around Rs 60,000 crore per day. Over the past six years, the share of individual investors rose by 12 percentage points from 33 per cent in FY16 to 45 per cent in FY21, rising especially sharply in FY21. The share of foreign institutional