Indian markets are on a tear again. The Nifty 50 recently surged to a fresh all-time high of 26,310, and yet, in a twist that feels both familiar and baffling, retail investors have quietly been doing the exact opposite of what logic (and every personal finance book ever written) suggests — they have been selling.
According to Ashish Singhal, co-founder of CoinSwitch, retail investors sold ₹19,700 crore worth of stocks this quarter, marking the biggest selling in two years. That’s happening at the same time the market is hitting new peaks.
‘If this feels like déjà vu, it’s because it is,’ Singhal said in a LinkedIn post.
For decades, investor behaviour has followed a near-predictable emotional loop: euphoria on the way up, anxiety on the way down, and regret somewhere in the middle. Singhal’s post captures this cycle with humour, honesty and, most importantly, experience — because he has watched thousands of users repeat the same pattern, without even realising it.
The Market May Change, But Emotions Don’t
Singhal points out a particularly interesting contradiction: “The same people who poured in record money last year are now selling near the top.” These are also the same investors who pause their SIPs at the very first sign of a correction.
When the market drops 15%, panic sets in. When it drops 20%, fear takes over. But when the market hits new highs? Suddenly everyone wants in again.
At CoinSwitch, Singhal has seen this play out in real time:
- When markets crash 30% → retail sells everything
- When markets recover 50% → retail buys back at higher prices
“It’s not stupidity,” he emphasises — “it’s just how we’re wired.” Humans fear losses twice as much as we value gains. So the moment red numbers flash on the screen, instinct kicks in — even if it means sabotaging long-term wealth.
The Comedy (and Tragedy) of Retail Behaviour
Singhal breaks down the classic emotional pathway of retail investors:
- Market goes up → Buy more!
- Market goes up more → Time to book profits!
- Market drops 10% → Stop SIP, something is wrong.
- Market drops 20% → I’ll wait until things stabilise.
Market recovers → Missed it… again.
Market drops again → Still too scared to invest.
It reads almost like a meme, but it’s shockingly accurate.
So Who Actually Makes Money?
Here’s the part most investors consistently underestimate: the people who end up making money in the markets are not always the smartest, the fastest, or the most informed. More often than not, they are simply the most consistent.
Singhal points out that three types of investors have historically come out on top. The first are those who stayed invested through sharp market swings, including the chaos of 2020. The second are those who kept their SIPs running even during deep corrections, allowing volatility to work in their favour through disciplined averaging. And the third group—often the most underrated—consists of people who didn’t obsess over their portfolios every single day, avoiding emotional decisions triggered by short-term market noise.
Put together, these behaviours highlight a simple truth: discipline beats timing, and patience beats panic. Investors who hold steady, follow a plan, and resist the urge to react impulsively are the ones who ultimately build wealth.
The Final Irony
Retail investors sold ₹19,700 crore this quarter. And, as Singhal notes, most will probably buy back at higher levels — exactly as they have many times before.
The market isn’t the enemy. Our instincts often are. Until investors learn to silence the emotional chatter and stick to a plan, history will keep repeating itself — one panic-sell and FOMO-buy at a time.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
