The data tells a consistent story. Retail participation has surged, with more than 100 million demat accounts, while the top 10 stocks account for roughly 45% of the Nifty 50. At the same time, correlations between the Nifty 50 and the S&P 500, typically in the 0.3-0.4 range, have risen to as high as 0.7-0.8 during periods of global stress. When global markets move, domestic portfolios shift with them.
Indian retail portfolios are no longer insulated from global shocks
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