Nasik located 180 kms north of Mumbai and better known for its grapes and upcoming malls is now trying to cash in on the stock market boom.
The latent wealth in the city and low yields provided by conventional saving instruments is forcing many of the districts residents to try their luck on the bourses and close to 10 major brokers like Anand Rathi, Angel Stock Broking, Edelweiss Capital and Sherkhan have set up shop to cash in on this boom. With a bulk of these brokers located the bustling Sharanpur Road, the street is now being referred to as a miny Dalal Street.
"Nasikites interest in the equity market has grown phenomenally over the past few years. From the presence of of two offline trading rings in the early 80s to the presence of close to 40 brokers right now. "The city witnesses daily stock trading to the tune of Rs 600-700 cr,"Pramod Puranik a pioneering investment consultant in the city said.
Even thought this amount may seem miniscule to the Rs 40,000 crore trading taking place in Mumbai, Nasik's exposure to the stock market is steadily increasing.
"Due to increasing competition broking houses margins are also coming under pressure and they are looking at expanding their clientele base to drive up volumes. Nasik with its traditional grape farmer base and increasing industrialisation has seeing a lot of wealth creation and
brokers in order to cash on in this opportunity are now setting up base here," Anand Rathi's asst vice president Shailesh Nawalakha said.
The change is not only in the level of investment but the profile of investors is also changing. From a conventional investor base of doctors, industrial bigwigs and grape farmers who drove Nasik's economy, the market pie is expanding to include professionals and small time businessmen.
Entrepreneur Mayuresh Jahagirdar (33) is nowadays finding it difficult to juggle between his well set engineering maintenance business and keeping an eye on his expanding stock portfolio. The engineering graduate who is soon set to start his own investment advisory firm represents the increasing tribe of investors from Nasik who are cashing in on the stock market boom.
"Income levels in the city are growing, so surplus money is finding its way in markets. People prefer to invest in shares directly because mutual funds take time to deliver.
People are ready to take risks on the market as nobody wants to miss the bus of quick bucks," Jahagirdar says.
The recent boom in the market has however also brought day traders into the game who are out to make a quick buck. Even though investment consultants increasingly warn new investors against speculating, many a new entrants in the market have burned their fingers in day trading.
"Nowadays you will find even a rickshaw driver putting his money on the market or monitoring business channels. No doubt there are speculators or day traders who want to make a quick buck but people in the city are increasingly finding the benefits of being a long-term player in the market," Karvy Stock Broking Ltd's regional manager N Venkat said.