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This story is from September 10, 2005
As Sensex soars, Gujaratis smile!
The recent bull run has brought a windfall for Gujaratis who constitute the largest investor base.
AHMEDABAD: Guess who is laughing all the way to the bank after the Sensex touched the dizzy heights of Cloud 8K? Well, it could well be a farmer in Junagadh who is stashing away his earnings from the groundnut crop in a large-cap stock.
The FII-led rally has brought a windfall for Gujaratis who constitute the largest investor base in India. And it is not just an investor in Ahmedabad or Surat who is lapping it all up.
The number of demat accounts in Bharuch, Bhavnagar, Banaskantha, Sabarkantha, Junagadh and Kutch districts has doubled in the last two years. National broking outfits like India Infoline, Karvy Stockbroking, IL&FS Investsmart and Angel Broking have set up their own offices or appointed franchisees in small towns across the countryside.
Investment firm India Infoline has opened offices in Anand, Bharuch, Vapi and Nadiad in the past year. "Daily trading volumes in Gujarat for our company have shot up to Rs 75 crore from around Rs 5 crore a year back, while the number of customers has shot up to 30,000 from 10,000," said Nehal Pandya, area manager at India Infoline.
"Rich farmers in Gujarat have started investing in the stock markets over the past few years as the interest rates on bank and postoffice deposits have fallen considerably. These farmers generally invest for three months to six months and then use the funds for planting new crops. For ages, farmers have been betting on the rains every year, so their risk-taking ability is quite high," said Sunil Parekh, advisor to Crisil.
Navsari-based Jayesh Parmar has made a notional profit of Rs 60,000 on his investment. But, as he believes that the market will rise further, he is not yet booking profits. Ahmedabad, with over 3.7 lakh demat accounts out of the total of 8.7 accounts in the state, still leads the pack, but brokers say the demand for demat accounts from smaller towns is phenomenal.
Karvy Stockbroking���s franchisee network in the state has shot up to 45 now from just five a year ago. "We opened 1,500 new trading accounts in the past nine months as against 3,500 achieved in the previous four years," said Jignesh Vyas, broking head at Karvy.
The FII-led rally has brought a windfall for Gujaratis who constitute the largest investor base in India. And it is not just an investor in Ahmedabad or Surat who is lapping it all up.
This bull run has a wider reach than what many may have thought.
The number of demat accounts in Bharuch, Bhavnagar, Banaskantha, Sabarkantha, Junagadh and Kutch districts has doubled in the last two years. National broking outfits like India Infoline, Karvy Stockbroking, IL&FS Investsmart and Angel Broking have set up their own offices or appointed franchisees in small towns across the countryside.
Investment firm India Infoline has opened offices in Anand, Bharuch, Vapi and Nadiad in the past year. "Daily trading volumes in Gujarat for our company have shot up to Rs 75 crore from around Rs 5 crore a year back, while the number of customers has shot up to 30,000 from 10,000," said Nehal Pandya, area manager at India Infoline.
Mitesh Mehta, a bank employee in Jamnagar, has seen his investments appreciate 80 per cent in the past two years. "My holding period for stocks is not more than two months," he says. He is still bullish for the long term.
"Rich farmers in Gujarat have started investing in the stock markets over the past few years as the interest rates on bank and postoffice deposits have fallen considerably. These farmers generally invest for three months to six months and then use the funds for planting new crops. For ages, farmers have been betting on the rains every year, so their risk-taking ability is quite high," said Sunil Parekh, advisor to Crisil.
Navsari-based Jayesh Parmar has made a notional profit of Rs 60,000 on his investment. But, as he believes that the market will rise further, he is not yet booking profits. Ahmedabad, with over 3.7 lakh demat accounts out of the total of 8.7 accounts in the state, still leads the pack, but brokers say the demand for demat accounts from smaller towns is phenomenal.
Karvy Stockbroking���s franchisee network in the state has shot up to 45 now from just five a year ago. "We opened 1,500 new trading accounts in the past nine months as against 3,500 achieved in the previous four years," said Jignesh Vyas, broking head at Karvy.
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