"Real Money Is With...": Zerodha's Nithin Kamath Names 2 Cities Behind 80% Of Equity Delivery Trades

Nithin Kamath, CEO of Zerodha, recently shared his analysis of the Indian stock market. According to his analysis, Mumbai and Ahmedabad are the undisputed champions of equity delivery trades in India, accounting for a whopping 80% of the market share. In November 2024, Mumbai accounted for  64.28% of equity trade deliveries, while Ahmedabad contributed 17.53% to equity delivery trades during the same period.

"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," he tweeted. 

Notably, his comment is a lighthearted nod to the Gujarati community's substantial influence on India's financial landscape. Gujaratis have a long history of being entrepreneurial and actively engaged in business and trading activities, particularly in cities like Ahmedabad and Mumbai. Last September, he commended Gujarat for accounting for approximately 40% of the participation in initial public offerings (IPOs), the highest by any state. 

See the tweet here:

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

The billionaire founder of Zerodha also shared some interesting insights on the city-wise distribution of turnover on cash segments of BSE and NSE. Ahmedabad topped the list, followed closely by Bengaluru, Vadodra, Bhubneshwar, Chennai, Ernakulam, Coimbatore, New Delhi, Guwahati, and Hyderabad.

In terms of the number of registered investors, Maharashtra took the top spot in the current fiscal. However, it's worth noting that this number is significantly lower than what was recorded in FY20. Mr Kamath further highlighted that Gujarat, despite being a significant player in the stock market, accounts for only 8% of the total registered investors. Interestingly, Gujarat's share has also been declining. 

Meanwhile, Uttar Pradesh has surpassed Gujarat to become the second-largest state in terms of the number of stock market investors. As of December 2023, Uttar Pradesh had 89.47 lakh registered investors, while Gujarat had 76.68 lakh. Maharashtra still holds the top spot with 1.48 crore registered investors.

Kunal Shah, the founder of CRED, responded to Mr Kamath's post with a witty remark. He quoted the popular phrase "Risk hai to Ishq hai" (Where there's risk, there's love), which is a famous line from the OTT series 'Scam 1992'. This series is based on the real-life story of the infamous Harshad Mehta scam. Shah's comment was likely meant to highlight the Gujarati community's reputation for being bold and risk-taking investors.

Another commented, "Investments require a blend of patience and substantial resources, and when it comes to these qualities, the Gujarati community shines brighter than most in India. Their strategic approach has allowed them to navigate the complexities of investing with skill and perseverance." A third said, "Ahmedabad and Mumbai running the stock market while the rest of us just watch Sensex like a cricket score."

A fourth added, "Gujarat majorly deals in Dabba trading hence just accounts for 8 % of total registered investors."