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Indian day traders are keen on GameStop Corp. has taken the stock markets by storm.
The video game retailer was among the five most traded names last week on Stockal, a platform for Indian retail investors to trade US stocks. GameStop accounted for around 15% of all transactions on the platform, Sitashwa Srivastava, co-founder and co-managing director, said in an interview.
“We didn’t expect Indians to be on Reddit, reading on GameStop,” Srivastava said. Unlike many of their option-rich WallStreetBets counterparts, Indian traders are not allowed to exercise leverage when trading foreign stocks, he said. “These are all cash transactions.”
GameStop has exploded onto the trading screens with the stock rising over 1,700% this year. Fueled by discussions from traders on the forums and by “Gamestonk !!” Elon Musk Tweeter, he surprised the professionals and tight shorts in large hedge funds.
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As in other markets, with more Indians staying indoors since the pandemic hit, many have flocked to stock markets at home and abroad, leading to increased retail investment. According to Stockal, their favorites in the United States have been Tesla Inc. and Apple Inc., with vaccine maker Covid-19 Moderna Inc. and Chinese electric vehicle company Nio Inc. rising in the rankings in recent months.
AT Winvesta, another platform targeting Indian individual investors, exposure to FAANG shares in client portfolios has fallen to 13% on average, from 18% in October, said managing director Swastik Nigam.
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In China, GameStop and AMC Entertainment Holdings Inc. were the most traded US names on Wednesday on a trading app from Shenzhen-based Futu Holdings Ltd., which serves individual investors in mainland China and Hong Kong.
‘Real skin’
Dipe Chatterjee, a Mumbai-based marketing consultant, says he bought GameStop and Tesla in recent months, realizing a 150% return on his $ 1,000 investment in the game retailer earlier this week before quickly booking some profits.
“It’s a game with real skin,” he says.
Reddit’s WallStreetBets forum earlier briefly passed away amid a wave of new participants. The site had racked up more than 3 million members as day traders plugged in businesses run by GameStop.
– With the help of Nupur Acharya and Moxy Ying
(Adds comments from CEO of Winvesta in sixth paragraph.)
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