Retail investors help stabilise Indian stock markets, says FM Nirmala Sitharaman

NEW DELHI: Finance ministerNirmala Sitharaman on Monday said retail investors have emerged as a good counterfoil to overseas portfolio investors in helping balance the markets.
"Our savings have been in banks, but since 2020, the retail investor in Indian stock marketshas shown risk-taking ability. When they invest in stock markets, our companies do well. When the retail participation is larger, the stock market is also able to offset international flows.If there is a rush of FII outflows, unlike earlier, the retail investor bulk is there, and volatility doesn't make the market shiver that drastically. The Indian investor base is widening," she said during an interaction with the Indian diaspora in Milan, where she is attending theAsian Development Bank's annual meeting.
While acknowledging external challenges, the finance minister said India remained the fastest-growing economy due to robust domestic demand. She also said that India will look at bilateral engagements as multilateral agencies as the UN bodies or WTO have lost some of their "zest."
Earlier, she met ADB chief Masato Kanda, where she underlined that India offered opportunities to the multilateral agencies to pilot new, innovative financing products and models.