Zerodha co-founder and CEO Nithin Kamath has raised concerns over the drop in a number of traders and trading volume as the Indian stock market continues its downward trend. He said that if the current trend continues, the government may see a significant drop in the Securities Transaction Tax (STT) revenue estimate. Mr Kamath’s statement comes as Nifty 50 logged its fifth consecutive monthly losses on February 28, its longest losing streak in almost three decades. The threat of tariffs by the Donald Trump administration and global bearish outlook led to Sensex sliding over 1,400 points in trade on Friday. NIFTY also marked its worst losing run since 1996 by plunging below 22,150 levels. Nearly Rs 9 lakh crore of the investors’ wealth was wiped out in a single session amid the market meltdown. The Zerodha CEO said that the markets were now finally correcting after a hot streak. Given that markets swing between extremes, they can decline more just like the movement to the peak.
