Last updated: February 14, 2023, 6:22 PM IST
The number of demat accounts rose to 11 crore in January 2023, a 31 percent year-on-year increase amid attractive stock market returns, ease of account opening and increased financial savings. Also, incremental additions from such accounts were higher in January than in the previous four months. However, it was still below the average run rate of 29 lakh for FY 2021-22 (FY22).
Incremental additions from such accounts amounted to 22 lakh last month, compared to 21 lakh in December, 18 lakh each in October and November and 20 lakh in September, according to an analysis by Motilal Oswal Financial Services. According to the data, the number of demat accounts has risen to 11 crore in January 2023 from 8.4 crore in January 2022, a growth of 31 percent.
Market experts believe that the addition of dematerialized (demat) accounts over the past year was mainly due to the attractive returns of the stock markets and the ease with which brokers open an account for their clients.
Also, increased financial literacy and the growing popularity of trading among youth are some other key factors that have contributed to the rise, she added. While the number of demat accounts continues to rise, the number of active clients of the National Stock Exchange (NSE) has been declining for seven consecutive months. The number of active accounts at the NSE fell 2.9 percent month-on-month to 3.4 crore in January, marking the seventh consecutive monthly decline. On a year-over-year basis, the number of such active users increased by 2.7 percent.
The intensity of the decline was higher at 10.4 lakh accounts in January compared to 7 lakh in the past three months. Currently, the top five discount brokers – Zerodha, Angel One, Groww, ICICI Securities and IIFL Securities – account for 59.2 percent of total NSE active clients during the reporting period, up from 59.3 percent in December.
Meanwhile, India Inc’s capital market sentiment was negative in January, with NSE’s reference index Nifty falling 2.9 percent month over month. However, towards the end of the month, volatility increased ahead of the announcement of the Union budget.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)