India’s small investors rush to join GameStop frenzy

India’s small investors are snapping up shares of U.S. retail investor favourite GameStop Corp, making the video game retailer the most traded stock on some Indian brokerages after anonymous social media posts fuelled a frenzied rally.

Shares of GameStop have surged 1,700% since January 12 as amateur U.S. investors, monitoring social media comments, have piled in and forced professional short-sellers to abandon their positions with heavy losses.

This week, GameStop accounted for 19% of the trades on Vested Finance, an Indian investment firm that helps Indians buyor sell U.S. stocks, and 15% of the trades on its rival Stockal, making it the most traded stock on both platforms.

“It’s quite surprising to see Indian investors jumping on the GameStop bandwagon,” Stockal co-founder Sitashwa Srivastava told Reuters.


“This shows a marked shift in investor behaviour from just using U.S. stocks to diversify their portfolios to rushing after a rally based on social media discussions. It could be reckless but it works for some.”

Despite India’s highly restrictive cross-border investment rules, Indians have been placing big bets on U.S. equities this year as American stocks recovered quicker than markets in India from a crash sparked by the coronavirus pandemic.

Indian investors venturing into U.S. stocks usually prefer top global companies such as Apple, Amazon, Facebook and Tesla as they look to diversify their holdings in India.

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations

A select list of articles that match your interests and tastes.

Faster pages

Move smoothly between articles as our pages load instantly.


A one-stop-shop for seeing the latest updates, and managing your preferences.


We brief you on the latest and most important developments, three times a day.

Support Quality Journalism.

*Our Digital Subscription plans do not currently include the e-paper, crossword and print.


Source link

One thought on “India’s small investors rush to join GameStop frenzy

  • March 15, 2021 at 11:07 pm

    I have never seen this view !


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.