How Algo Traders Are Draining India’s Retail Wealth | Govindraj Ethiraj | The Core Report скачать в хорошем качестве

How Algo Traders Are Draining India’s Retail Wealth | Govindraj Ethiraj | The Core Report

On Episode 625 of The Core Report, financial journalist Govindraj Ethiraj talks to Ravi Hegde, Founding Partner, RHP Partners, Lloyd Pinto, Partner - US Tax, Grant Thornton Bharat as well as Shishir Lagu, Partner – Tax services, KNAV Advisory Inc. ____________________________________________ In Partnership With: Want smarter investing at your fingertips? With InvestingPro, get real-time market data, custom alerts & global financial insights — all in one place. Join 46M users already making sharper decisions. Download InvestingPro today: https://www.investing-referral.com/af... ____________________________________________ SHOW NOTES (00:00) The Take (05:19) Markets brace for uncertainty as trade talks stall (06:35) OPEC to boost output; oil prices may ease (07:49) India rejects strict trade deal deadlines (11:46) Inside Jane Street: rise & legal battle (22:33) Trump’s Big Beautiful Bill: impact on Indian firms in US & India The Take: It's Like Lambs To The Slaughter: Retail traders in India lost ₹181,000 crore (~$22B) in F&O between 2021–24, SEBI reported. Only 7% made profits. In FY24 alone, 91% of retail traders lost ₹52,000 crore. Most gains went to foreign and proprietary players using algorithmic trading—97% and 96% respectively. Retail traders under 30 rose to 43% in FY24. Most earn under ₹5 lakh a year. India now leads global equity derivatives trading—nearly 60% of global volume. So SEBI’s crackdown on Jane Street Capital, a US-based quant firm, shouldn’t surprise—but it did. Jane Street shows how tech skews the game. It hires math-savvy quants and builds low-latency systems and AI-driven trading tools. Contrast that with an Uber driver in a viral video who lost ₹2.5 lakh—his full annual income—in options trading. He plans to return when he has more capital. At the other end: sleek broking apps built by Indian techies. They offer frictionless trading and social content to lure new users—like that Uber driver—into a market stacked against them. Together, they funnel retail traders into arenas ruled by firms like Jane Street. The game was never fair. Regulators like SEBI and RBI have acted—curbing speculation and tightening unsecured loans—but the damage continues. Systemic risk may be low, but social risk is rising. Across India’s 800M smartphones, this repeats daily. Some gamble on IPL scores. Others on options. The slicker the app, the faster the fall. Market Update: Markets ended last week slightly down despite Friday gains. Sensex closed at 83,432 (+193), Nifty at 25,461 (+55). Indices are still up ~15% since March. Wall Street keeps rising, ignoring Trump’s trade tensions. Oil Watch: OPEC+ will raise output by 548K barrels/day in August. Crude hovers above $68. The move reverses earlier cuts as demand stabilizes. India-US Trade: India won’t rush trade deals for the July 9 deadline. Minister Piyush Goyal said national interest will drive decisions, not pressure. Trump has threatened 26% tariffs on Indian goods. Auto Discounts: Car makers are offering ₹70K–₹4L discounts to clear unsold 2024 stock. High inventory and holding costs are pushing this. Two-wheeler makers stay cautious. Suzuki overtook Mercedes as Japan’s top car importer—via India-made models. Jane Street Ban: SEBI barred Jane Street and froze $567M, citing market manipulation. The ban stays until probe ends. Lawyer Ravi Hegde shared insights on the case. OBBBA: The US passed the One Big Beautiful Bill Act. It extends 2017 tax cuts, adds new levies, and may raise deficits by $3.3T. Experts Lloyd Pinto (Grant Thornton) and Shishir Lagu (KNAV) weighed in on India impacts. If this episode on how algo traders are draining India’s retail wealth helped you understand the risks of options trading, retail investing, and SEBI regulations, please like, share, and subscribe to The Core Report. Stay updated on market trends, financial news, and trading insights every week. New episodes daily. #AlgoTrading #RetailInvestors #IndianStockMarket #SEBI #OptionsTrading #TheCoreReport #TheCore Join The Core Insider to get access to perks:    / @thecore_in   Listeners! We await your feedback: https://tinyurl.com/TCR-Listener-Survey The Core & The Core Report is ad supported & FREE for all readers & listeners. Write in to [email protected] for sponsorships & brand studio requirements. For more of our coverage check out thecore.in (https://www.thecore.in/) Support the Core Report (https://tinyurl.com/Support-the-Core-...) Join & Interact anonymously on our WhatsApp channel (https://tinyurl.com/The-Core-WhatsApp...) Subscribe to our Newsletter (https://www.thecore.in/newsletters/th...) Follow Us on Social Media for More Updates: Twitter (  / the_core_in  ) Instagram (  / the.core.in  ) Facebook (  / thecore.biz  ) Linkedin (  / thecore-in  ) Youtube (   / @thecore_in  )