Particle.news
Download on the App Store
4 ARTICLES
·
2mo ago

India’s Markets Carry Just a Fraction of US Leverage, Zerodha’s Nithin Kamath Says

He argued that comparing contract counts without accounting for premiums or market maturity distorts perceptions of India’s leverage

In a lengthy post on social media, Nithin Kamath argued that Indian markets are significantly less leveraged than their US counterparts.
Image
‘Ridiculous’: India’s markets far less leveraged than the US, says Zerodha’s Nithin Kamath

Overview

  • On July 31, Zerodha CEO Nithin Kamath publicly refuted claims that India’s markets are overleveraged by contrasting them with US figures.
  • He pointed out that India’s margin trading facility remains below $10 billion, or roughly 1% of the over $1 trillion US market.
  • Stock-lending and borrowing in India are nearly negligible compared to the US’s about $1 trillion in short positions.
  • Kamath blamed misleading narratives on analyses that focus on options contract volumes rather than premiums and actual trade values.
  • He said India’s financial markets lag US maturity by 15–20 years, a gap that underpins structurally lower leverage despite rising retail derivatives activity.