Sat Mar 01 09:29:35 UTC 2025: ## Zerodha CEO Warns of Cratering Indian Stock Market, Plunging STT Revenue
**Mumbai, March 1, 2025** – Nithin Kamath, CEO of brokerage giant Zerodha, has issued a stark warning about the deteriorating state of the Indian stock market, citing a dramatic drop in trading volume and the number of active traders. Kamath’s concerns highlight a potential significant shortfall in government revenue from Securities Transaction Tax (STT).
In a post on X, Kamath revealed a massive decline in both trading activity and the number of participants within the broking industry. He stated that this downturn, if sustained, could slash government STT revenue projections for FY25/26 by at least 50%, potentially falling far short of the estimated ₹80,000 crore. He noted that the current activity is concentrated amongst only 10-20 million Indian traders, revealing the shallowness of the domestic market.
This alarming trend comes amidst a broader market downturn. The Sensex plummeted over 1400 points on Friday, marking the Nifty’s worst losing streak since 1996, wiping out nearly ₹9 lakh crore in investor wealth. This continued decline, marking five consecutive months of losses for the Nifty 50, is attributed to a confluence of factors, including fears of a US-led tariff war, weak corporate earnings, rising economic uncertainty, and persistent foreign fund outflows. All 13 major sectors opened in the red on February 28th.
Kamath, who described witnessing degrowth for the first time in Zerodha’s 15-year history, believes the market is finally correcting after a period of significant growth. However, he emphasizes the volatile nature of the market, warning that further declines are possible. His comments underscore the gravity of the situation and raise concerns about the broader health of the Indian economy.
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