After the bull market phase of corona virus crash recovery, our market started to consolidate in a negative bias. When the Euphoria of the bull market has ended retailers started to face difficulty in making easy money from the stock market and there by started losing interest. With the new technological advancement and adoption, trading and investing in the stock market has become very convenient and easy for the retail investors. But investors without proper knowledge or understanding will not be able to brace themselves from the market volatility and will end up losing money.

The year 2022 was highly volatile with heavy foreign institutional selling and majority of the retail participants were not even able to generate bank returns from the stock market. As intelligent retail investors we must understand the fact that consolidating markets for years are part of the market trend and we have to stay invested when markets are undervalued and the markets will generate fruitful returns in the future. We can understand that Performance and risk are the key factors that influence the interest of investors. If an investment option consistently underperforms or carries high levels of risk, investors may lose interest and look for alternative opportunities.

After the 2021 high of 18604 in Nifty 50 index, markets have been consolidating in a negative bias till the date give poor returns to investors. Investors portfolio started to underperform for years. Investors started to realize that their mutual fund holding, stock investments are not even generating bank FD returns. Poor performance, high volatility, or lack of transparency in investment options can significantly impact investor confidence and lead to a loss of interest.

Why Retailer are losing confidence in Indian stock market?

  • Huge volatility in Market  

From the beginning of year 2022 markets have been witnessing huge volatility. Investors who come into the market without proper knowledge will not be able to withstand the market volatility and will end up losing money. As the stock market trend continues to change, it is crucial for investors to stay informed and adapt to the changing dynamics to make informed investment decisions.

  • Heavy Foreign institutional selling  

Foreign Institutional investors have turned net seller in the year 2022, FII’s has sold for Rs 2.78 lakh crore. This heavy selling has created huge bearishness and volatility in the Indian market. The Nifty 50 index and blue-chip stocks have started to fall heavily and underperform with the institutional selling. Investors mutual funds and stock portfolio has started to underperform for a year and this lead to lose interest and confidence in the stock market.

  • Weak Economic Conditions

 Weaker economic conditions can create negative impact on the stock market Economic conditions play a crucial role in shaping investor sentiment. When economic conditions are uncertain or unfavourable, investors may become more risk-averse and hesitate to invest in stock market and will prefer more safer fixed income investments. Factors such as inflation, interest rates, and geopolitical instability can all impact investor confidence and influence investment decisions.


While analyzing the historical performance of US market and the Indian stock market we can understand that market consolidating for years are just part of the market trend. But in the long-term market has generated good returns for even the consolidated years. Being an intelligent and informed investor having your own research and buying an asset class only when they are undervalued can help us to make great returns in the long term. Investments and trading have become so common with the technological advancement and with the introduction of discount brokers which the trading and investment easily within a mobile device. The younger generation enters stock market to make huge returns from the market without basic market and investment knowledge ends up losing money. Educating ourselves about the market and investment can save us from losing money from the stock market and there by become an intelligent investor.

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