Market volatility, MTF, geopolitics and investor mistakes: Jainam’s CBO explains

Market volatility, shifting investor behaviour and the growing use of leveraged products are shaping conversations across India’s financial markets. With retail participation reaching new highs and information flowing faster than ever, investors are facing both new opportunities and new risks.

In an interaction with Business Today, Pulak Kumar Singh, Chief Business Officer, Jainam (formerly known as Jainam Broking) discussed the factors influencing sentiment, the risks investors should watch, and how customer expectations are evolving in the digital investing era. Read the edited excerpts: 
 

BT: Indian markets continue to witness phases of volatility. From a business and investor behaviour perspective, what do you believe is driving sentiment currently?
Singh: Indian markets today are operating in a more interconnected and fast-moving environment than before. Investor and trader sentiment is shaped by a combination of internal and external variables. What has also changed is the way investors and traders consume information. The pace of market commentary, social media narratives, and real-time reactions often amplifies short-term sentiment swings.

In such conditions, investors and traders seek greater clarity, stronger perspective, and more disciplined participation frameworks rather than purely transactional platforms. We believe this is where the role of a modern financial partner becomes important, helping investors cut through clutter, assess risks more thoughtfully, and approach markets with informed thinking and long-term confidence.
 

BT: With geopolitical tensions, oil price fluctuations, and global economic uncertainty continuing to rise, what key risks should investors be mindful of currently?
Singh: Investors today need to be mindful of three broad areas of risk. The first is event-led volatility. Global geopolitical developments are causing markets to react sharply to external triggers. Such phases can increase volatility across sectors and asset classes in a very short period of time.

The second is leverage-related risk. During prolonged bullish phases, many investors and investors tend to increase exposure aggressively through leveraged products or concentrated positions without fully accounting for downside scenarios.

The third is behavioural risk, which is becoming increasingly relevant in the digital investing ecosystem. The speed of information consumption today often pushes investors towards reaction-based decisions instead of research-backed participation. Short-term narratives can sometimes overshadow asset allocation discipline and long-term financial objectives.

In this environment, investors and traders should prioritise diversification, calibrated risk-taking, liquidity management, and disciplined participation. Volatility itself is not necessarily a concern; the bigger challenge is how investors and traders respond to volatility.
 

BT: Margin Mrading Facility (MTF) has been a much-used buzz word among traders. Should they use MTF or avoid it?
Singh: Margin Trading Facility is essentially a participation tool that can help investors optimise capital usage and enhance market flexibility when used with the right understanding and discipline. The important point is that MTF should align with an investor’s risk appetite, investment horizon, and overall market understanding. For experienced investors with structured strategies and disciplined risk management, it can be an effective way to manage participation opportunities.

At the same time, investors should avoid approaching leverage with a short-term or momentum-driven mindset, especially during volatile market phases. The focus should always remain on informed participation and balanced decision-making rather than aggressive positioning. Investors today are becoming more aware about risk calibration, portfolio discipline, and the importance of aligning instruments with their financial goals. This is a healthy evolution for the broader investing ecosystem.

From an industry perspective, the larger responsibility is to ensure investors have better awareness, clearer communication, and the right frameworks to make informed choices. Financial instruments are most effective when they are used thoughtfully and as part of a disciplined investment approach.
 

BT: Retail participation in India has expanded significantly over the last few years. How are customer expectations changing across trading, investing, and overall platform experience?
Singh: One of the biggest shifts observed is that investors and traders now evaluate platforms through the lens of trust, guidance, experience, and long-term value creation. Earlier, platform differentiation was largely centred around brokerage pricing or execution capabilities. Today, customer expectations extend much beyond transactions.

Investors and traders increasingly prefer platforms that simplify complexity and eliminate unnecessary noise. They seek intuitive experiences with cleaner interfaces, clear communication, seamless onboarding, efficient execution, and insights that are actionable, relevant, and easy to understand rather than overwhelming.

There is also growing expectations for more personalised and structured engagement journeys, especially among newer investors and traders entering capital markets for the first time. They want to feel more confident and informed while navigating volatile and fast-moving market conditions.

As participation in Indian capital markets expands rapidly across metro cities as well as Tier 3 and Tier 4 markets, investor expectations are becoming increasingly diverse and sophisticated. Our focus is on building a more cohesive, contemporary, and guidance-led experience that aligns with how modern Indian investors discover, learn, decide and engage today. 
 

BT: What is the idea behind the brand identity refresh? What are your MOATs considering the cut-throat competition in the broking space?
Singh: The transformed brand identity reflects Jainam’s evolution alongside the changing behaviour and expectations of modern investors. Financial markets today are far more dynamic, information-heavy, and participation-driven than they were even a few years ago. In such an environment, investors are looking beyond transactional platforms and seeking stronger guidance, better clarity, and more meaningful engagement.

Our transformation is rooted in this larger shift. The evolved identity represents Jainam’s vision to become a trusted ;modern mentor’ for investors and traders helping them navigate markets with greater clarity, perspective, and decision confidence. This is not just a visual refresh; it reflects a broader evolution across investor experience, communication philosophy, and participation frameworks.

The positioning is anchored around three principles that define how we want to engage with investors and traders going forward – Clarity over clutter, precision over probability and actionable direction over passive insight.

As far as differentiation is concerned, the broking industry today is highly competitive from a pricing and technology standpoint. Sustainable differentiation comes from trust, investor understanding, service quality, and the ability to build long-term engagement.

Our strength comes from a combination of over two decades of market experience, strong investor relationships, extensive physical and digital reach, and our focus on enabling better decision quality for investors and traders. We are building an ecosystem that combines technology, investor guidance, structured participation, and customer experience in a more integrated manner.