While the Indian stock market‘s recent rise to a new high made headlines, market veteran Shankar Sharma has a different take on the recent bull run, which he sees as the biggest cash transfer from the rich to the poor.
While equity investors, even small retail savers, at least receive stocks and mutual fund units in return for their money, the same cannot be said for F&O traders, who Sharma believes face a permanent capital loss.
In a latest post on X, Sharma said, “This bull market will go down in Indian history as the biggest cash transfer from the poor to the rich (F2s, Promoters, Founders, VC, PE, Asset & Wealth Managers, etc).”
Sharma’s tweet comes against the backdrop of massive equity dilution cycles and IPO fundraising wherein promoters, founders, venture capitalists, private equity funds, and asset managers have all benefited handsomely.
In 2025 alone, IPO fundraising via offer for sale (OFS) touched ₹96,984.50 crore, almost double of ₹57,071.66 crore raised via fresh capital. Meanwhile, data from Nuvama Alternative Quantitative Research revealed that ₹25,500 crore of shares were sold by market insiders between January 1 and September 16, 2025, as against a buying of ₹3,860 crore.
However, Sharma added that retail investors who participated at least got a slice of the stock or mutual funds, which “hopefully someday, will make money.”
F&O traders worst hit
However, he believes the same cannot be said for the Indian retail investors who engage in F&O trading. Sharma said in their case, it’s a “permanent loss of capital” type transfer.
As a majority of F&O traders tend to lose money despite certain rail guards in place by the market regulator Sebi, Sharma said, “Cash transfer to F&O brokers who built market cap, cash piles, from commissions from (overwhelmingly) losing traders, remains an irreparable, non-returnable, non-recoverable wealth transfer.”
Sebi study shows that nearly 91% of individual traders incurred net loss in the equity derivatives segment (EDS) in FY25 at the aggregate level, similar to the trends observed in FY24.
Therefore, while India’s bull market has been celebrated, Sharma believes that in reality, the inclusion has been uneven, with the rich gaining at the expense of the poor (retail investors).
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
