Tweet Buster: Is algo trading super profitable? Zerodha CEO says no

NEW DELHI: Led by strong buying in auto, metal, energy and banking sectors, both Sensex and Nifty went up more than 2 per cent each to scale new peaks last week. Analysts say that with the expectation of a strong recovery in corporate earnings, the Indian market is positioned to continue its bull run. In this edition of Tweet Buster, we scan through the social media platform to bring the best of fintweets.

Trading Tool
Zerodha CEO Nithin Kamath said it isn't true that algo traders are super profitable. "While an algo doesn't have emotions, it is only as good as the person who wrote it or controls (start & stop) it—the same person who's riddled with fear and greed. Every algo like any trader, strategy or stock, has ups & downs. Just like impatient discretionary traders constantly try to time entry & exit, getting in late & out early, trade against trends, the same happens with algo traders trying to constantly find the best algo as well," he said.




Overrated vs Underrated
Edelweiss Mutual Fund CEO Radhika Gupta said the big debate over active vs passive mutual funds is overrated. "Underrated: How to get more investors in any form of MFs, at a time when unregulated asset classes are growing.
How to get investors to invest in equity in any form, in a sustainable way."


How to beat Nifty
DSP Mutual Fund's Kalpen Parekh said the power of equal weight is under appreciated when regime shifts happen from polarised weights to broad based recovery. "After a tough phase of top 8 stocks making all returns, equal weight Nifty has earned 18% more than Nifty itself in last year."

Value Bet
Independent market expert Sandip Sabharwal said the GatiShakti project can provide impetus to infrastructure sector stocks. "One of the only segment where value exists in the markets at this point of time."