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WHY HOUSEHOLDS STAY AWAY FROM THE STOCK MARKET
1
Author(s):
DHANURAJ PC
Vol - 6, Issue- 11 ,
Page(s) : 27 - 33
(2015 )
DOI : https://doi.org/10.32804/CASIRJ
Abstract
Indian stock market has seen a near persistent bull run. Between November 23, 2011 and November 28, 2014, the closing value of the Sensex rose by 280 per cent, or an average of more than 90 per cent a year.
This was a time when households were cutting back on their financial savings with the ratio of gross financial savings of households to GDP falling from 15.1 per cent in 2009-10 to 10.3 per cent in 2012-13.
Households in India have very low exposure to equities in terms of their financial holdings. In fact, a recent article in The Wall Street Journal noted that Indians have about 2% of their total financial assets in stocks. This is very low compared to other countries such as the U.S. where the rate is 35%.
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