'The real money is with Gujjus...': Zerodha's Nithin Kamath unpacks Gujarat’s trading paradox

When it comes to stock market dominance, two cities stand unrivaled: Ahmedabad and Mumbai. Together, they account for a staggering 80% of equity delivery trades in India. “Let that sink in,” wrote Zerodha co-founder Nithin Kamath, underscoring the influence of Gujarat’s financial community. 

“Essentially, the real money is with Gujjus.”

Yet, here’s the twist: Gujarat accounts for just 8% of the total registered investors in the country, and this share is falling, he added. 

This paradox raises a compelling question—how does a region with a shrinking investor base punch so far above its weight?

"Investments require a blend of patience and substantial resources, and when it comes to these qualities, the Gujarati community shines brighter than most in India. Their strategic approach has allowed them to navigate the complexities of investing with skill and perseverance," wrote Trustscore founder Shveta in response to Kamath's tweet. 

Kamath shared data along with  his post where Maharashtra continued to lead in registered investors across Indian states, but its dominance has slightly declined over the years. 

Its share dropped from 20% in FY10 and FY15 to 19% in FY20 and further to 17% in FY25. Uttar Pradesh, on the other hand, has shown steady growth, rising from 6% in FY10 to 11% in FY15 and stabilizing at 13% by FY25, reflecting increased retail participation. 

Gujarat has seen its share decline consistently from 12% in FY10 to 9% in FY25, indicating a gradual reduction in its influence. 

Meanwhile, states like Karnataka, Tamil Nadu, and West Bengal have maintained stable shares of around 6–7%, while Delhi and Madhya Pradesh have experienced slight declines, with Delhi falling from 7% in FY10 to 4% in FY25.

Mumbai remains the financial powerhouse of India, dominating turnover contributions across major exchanges. In November 2024, it accounted for 31.15% of turnover on the BSE, 27.20% on the NSE, and an impressive 64.28% on the MSEI for FY25. Ahmedabad emerged as another key player, contributing 25.37% of turnover on the BSE and 16.87% on the NSE. Bengaluru has shown modest but growing activity on the NSE, holding a 3.06% share, while cities like Hyderabad and Chennai contributed smaller but notable shares of 2.57% and 0.88%, respectively. Smaller cities, including Indore, Jaipur, and Kanpur, held minimal shares across exchanges.

These trends reveal important shifts in India’s equity market landscape. Maharashtra, though still the leader in investor registrations, is losing ground as states like Uttar Pradesh rise. Mumbai continues to dominate trading activity, especially on the MSEI, where it contributes over 64% of turnover. Ahmedabad’s influence is strong on the BSE but less pronounced on the NSE. Meanwhile, the growing participation from states like Uttar Pradesh highlights the democratization of equity trading, with more investors from non-traditional regions entering the market.

India’s domestic market capitalization hit $5.18 trillion by January 2024, growing 18.4% from the previous year and cementing its position as the world’s third-largest stock market.