Traders in the days of India deal with Race GameStop Corp. which took over the capital markets.
The video game retailer was among the five most traded names in the last week Stockal, a platform for Indian retail investors to trade shares in the US. GameStop accounted for about 15% of all transactions on the platform, Sitashwa Srivastava, co-founder and co-executive director, said in an interview.
“We didn’t expect Indians to be on Reddit, reading about GameStop,” Srivastava said. Unlike many WallStreetBets counterparts with large options, Indian traders are not allowed to take leverage while trading foreign stocks, he said. “All of this is cash trading.”
GameStop has exploded on trading screens, with stock growing by more than 1,700% this year. Powered by forum discussions and “Gamestonk !!” of Elon Musk tweet, takes professionals by surprise and shorts squeezed to major hedge funds.
READ: Michael Burry calls GameStop rally “Unnatural, Insane” (3)
As in other markets, with several Indians remaining at home since the pandemic hit, many have gathered in the domestic and foreign stock markets, leading to an increase in retail investment. According to Stockal, their US favorites were like Tesla Inc. and Apple Inc., the vaccine manufacturer Covid-19 Moderna Inc. and Chinese electric vehicle company Nio Inc. growing in recent months.
to Winvesta, another platform targeting individual Indian investors, has exposed FAANG shares in customer portfolios to an average of 13% from 18% in October, said CEO Swastik Nigam.
READ: Faang Stocks Glide Over Regulatory Concerns, Reflective Anxiety (3)
In China, GameStop and AMC Entertainment Holdings Inc. were the most traded U.S. names on Wednesday on a Shenzhen-based Futu Holdings Ltd. trading app that serves individual investors in mainland China and Hong Kong.
“Real leather”
Dipe Chatterjee, a marketing consultant in Mumbai, says he bought GameStop and Tesla in recent months, making a 150% return on his $ 1,000 investment in the gaming retailer earlier this week, before quickly making a profit.
“It’s a game with real skin,” he said.
Reddit’s WallStreetBets forum earlier it stopped for a short time amid a new wave of participants. The site gained over 3 million members as day traders connected GameStop-run companies.
– With the assistance of Nupur Acharya and Moxy Ying
(Add comments from Winvesta CEO in the sixth paragraph.)