7 Trends That Will Revolutionise Stock Trading

Indian stock markets are currently among the most alluring emerging markets for investors. India has shown noteworthy macro developments, including remarkable GDP (Gross Domestic Product) for FY22, making it one of the fastest-growing markets across the globe. Going forward, investors can look at the following trends revolutionising the Indian stock markets: 

7 Top Trends that will Take Over the Market

1. 5G Internet Technology

5G technology in India is taking the world towards transforming wireless devices across sectors. With exceptional advancements, the trend will rule the industry. There will be more connected devices, smarter wearables, and richer data streams that can make human lives easy. To take advantage of 5G technology, investors consider stocks of telecom network companies and equipment providers to add to their demat accounts.

2. Extended Reality

There are many existing technologies under digital Extended Reality (XR), including Augmented Reality (AR), Mixed Reality (MR), and Virtual Reality (VR) that have given a boost to the tech industry. As digital technologies continue to accelerate, extended reality will also continue to dominate the industry with more captivating digital experiences in the coming years. It can deliver more economic opportunities. Expect more investors’ engagement with greater opportunities in the industry.

3. A Record Number of IPOs

The primary markets will also be super active with many companies ready to raise funds via IPOs (Initial Public Offerings). Expect a new record of IPOs to hit the market. It will lead to significant listing gains for retail investors. About 22 companies have raised Rs.44,085 crore in 2022 through IPOs, which benefitted promoters and existing investors of new-age companies the most. Free demat account opening will help you take more into your pocket with long-term investments.

4. Electric Vehicles

India's electric vehicle (EV) industry is picking the pace with 100% Foreign Direct Investors (FDI) and new manufacturing units. There is a paradigm shift in the Indian automotive industry with greater investment in electric vehicles. Investors remain bullish on the growth potential of the Indian EV industry with rising demand and high sales forecast and are ready to invest more. There will be more renewable energy resources. The industry is attracting private equity/venture capital investors continually. The Indian EV market may cross US$206 billion by 2030 with steady progress.

5. Datafication

For real-life experiences in studying, playing, socialising or even working, Metaverse has become a culture where the physical and the digital world work parallelly. A range of new applications and devices will hit the market and bring more investing opportunities. There will be more scanner tools, online games with socialising factors, and even spirituality applications that work on huge data sets. Finding the new-age companies in the tech industry with the right valuation will help investors to make a positive move for their investment portfolios.

6. Increased Usage of Digital Platforms

Increased use of the internet and smartphones in India will increase the number of investors looking for easy-to-use interfaces and digital financial services rapidly. Most people prefer to trade using trading applications with a few taps. Expect more companies involved in application developments and different digital channels for safe trade transactions for improved online trading experience. There will be more advanced platforms using algorithms to increase profitability.

7. More Investments from HNIs and UHNIs

The investing patterns of high-net-worth individuals (HNIs) and ultra-HNIs (UHNIs) have changed with the complexity of investment products and solutions to regulatory and taxation challenges. They prefer to use technology for investment analysis and easy execution at lower fees. New-age brokerage applications help them to make the process easy. They have significantly increased the allocation to Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs), according to the SEBI (Securities Exchange Board of India) data. Their AIF allocation was INR 6.94 lakh crores in June 2022.

Thus, digital technologies are prominent and will continue to influence Indian markets profoundly in the coming year too. Investors can plan their investments in the stock market considering these trends.