The Indian markets collapsed monumentally at the intraday trade on Friday, February 28. The BSE Sensex, the oldest active index in Asia, lost a total of 1,414.33 points or 1.90 per cent, taking the overall value of the index to 73,198.10 points.

Markets In Free Fall

The NSE Nifty was no better, as the index suffered one of its worst time in nearly 30 years. This is after the index dropped in value for 5 consecutive months for the first time in 28 years.

On Friday, the index dropped to the low of 22,124.70 points, after the decline of 420.35 points or 1.86 per cent.

Reacting to this development, CEO and co-founder of Zerodha, Nithin Kamath reacted to the burgeoning development. Zerodha is the second largest trading platform in the country, after Groww.

In post on X, Kamath observed and said the following.

Drop In Volumes and Traders

Kamath said, "The markets are finally correcting. Given that markets swing between extremes, they can fall more just like they rose to the peak."

Kamath cautioned and said that he had no inkling of where the markets were headed from this point of decline.

However, Kamath gave an insight into the development behind the scenes. Talking about his business, he said, "I've no idea where the markets go from here, but I can tell you about the broking industry. We are seeing a massive drop in terms of both the number of traders and volumes."

According to Kamath, there's a more than 30 per cent drop in activity across brokers.

Shallow Indian Markets

Combined with the true-to-market circular, the sector, according to Kamath, is seeing degrowth in the business for the first time in about 15 years.

Kamath further added, "This drying up of volumes shows how shallow the Indian markets still are. The activity is more or less among those 1-2 crore Indians. By the way, if this continues, the government will not make even Rs 40000 cr from STT in FY 25/26, at least 50 per cent below the Rs 80,000 cr estimate."