The markets are finally correcting. Given that markets swing between extremes, they can fall more just like they rose to the peak.

I’ve no idea where the markets go from here, but I can tell you about the broking industry. We are seeing a massive drop in terms of both the number of traders and volumes.

Here is the trading volume chart. Across brokers, there’s a more than 30% drop in activity. Combined with the true-to-market circular, we are seeing degrowth in the business for the first time since we started 15 years ago.

This drying up of volumes shows how shallow the Indian markets still are. The activity is more or less among those 1-2 crore Indians.

By the way, if this continues, the government will not make even Rs 40000 cr from STT in FY 25/26, at least 50% below the Rs 80,000 cr estimate.

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