Active Stocks
Thu May 23 2024 15:59:05
  1. Tata Steel share price
  2. 175.45 1.24%
  1. NTPC share price
  2. 372.30 -0.43%
  1. Power Grid Corporation Of India share price
  2. 319.75 -1.86%
  1. Indusind Bank share price
  2. 1,442.00 2.29%
  1. State Bank Of India share price
  2. 832.35 1.59%
Business News/ Markets / Stock Markets/  Total demat accounts hit new high, jump to over 15 crore in March
BackBack

Total demat accounts hit new high, jump to over 15 crore in March

According to domestic brokerage house Motilal Oswal Financial Services, the total number of demat accounts jumped to 15.1 crores in March 2024, with new account additions surging to 31 lakhs in the previous month.

According to domestic brokerage house Motilal Oswal Financial Services, the total number of Demat accounts jumped to 15.1 crores in March 2024, with new account additions surging to 31 lakhs in the previous month. (iStock)Premium
According to domestic brokerage house Motilal Oswal Financial Services, the total number of Demat accounts jumped to 15.1 crores in March 2024, with new account additions surging to 31 lakhs in the previous month. (iStock)

The total number of demat accounts in India crossed the 15 crore mark for the first time ever in March on the back of sustained bullish momentum in the Indian market.

Maximize your investment returns Open Demat Account

According to domestic brokerage house Motilal Oswal Financial Services, the total number of demat accounts jumped to 15.1 crores in March 2024, with new account additions surging to 31 lakhs in the previous month.

The Indian benchmark Nifty rose 1.5 percent in March on the back of strong macro cues, hopes of a rate cut, continuous foreign investor inflows as well as overall positive global market trends. Moreover, the expectation of the current Narendra Modi government retaining a third term in the upcoming 2024 general elections also aided investor sentiment.

Unlock your financial freedom Open Demat Account

Read here: 23,000 or 25,000? Here's where experts see Indian benchmark Nifty 50 by FY25-end

The brokerage also reported that in March, Central Depository Services Limited (CDSL) continued its upward trajectory, gaining market share both in terms of total demat accounts and on a month-on-month (MoM) basis. Conversely, National Securities Depository Limited (NSDL) experienced a decline of 390bp/570bp in total/incremental demat account market share year-on-year (YoY).

Meanwhile, the National Stock Exchange (NSE) saw a consistent rise in active clients for the ninth consecutive month, with the number increasing by 1.8 percent MoM to 4.08 crore in March this year.

Start your investing journey today Open Demat Account

The top five discount brokers presently hold 63.8 percent of the total NSE active clients, up from 59.9 percent in March 2023.

Read here: Demat Account: What precautions should you take while using it?

Experts attribute this surge in account openings to heightened investor interest in financial markets, driven in part by successful IPOs that have attracted new participants to the market.

Overall, in FY2024, India witnessed a notable surge in demat accounts, averaging 30 lakh additions monthly. Major depositories such as CDSL and NSDL recorded an 11.9 percent year-on-year increase, collectively reaching a total tally of 15.14 crore from 11.45 crore, highlighted MOSL.

Read here: Demat account: 10 common mistakes to avoid while investing in stock market

Performance of brokers

In FY24, the performance of key discount brokers displayed a mixed picture, observed MOSL.

Zerodha observed a modest 0.9 percent month-on-month growth in its client count, reaching 73 lakh, yet experienced a slight decline of 20 basis points in market share, which stood at 17.9 percent. Upstox, on the other hand, reported a 0.6 percent MoM increase in its client count, reaching 25 lakh, but saw a minor dip of 10 basis points in market share, down to 6.2 percent. In contrast, Groww exhibited a notable 3.8 percent MoM surge in its client count, reaching 95 lakh, accompanied by a significant 50 basis points rise in market share, which climbed to 23.4 percent.

Read here: Demat account: 9 best ways to track your stock portfolio efficiently

Among the key traditional brokers, ICICI Securities witnessed a 1.3 percent month-on-month decrease in its client count, totaling 18 lakh, along with a 15 basis points decline in market share, settling at 4.5 percent. Conversely, IIFL Securities reported a marginal 0.3 percent MoM increase in its client count, reaching 4 lakh, maintaining a market share of 1.1 percent, MOSL reported.

Overall ADTO declines

As per the brokerage, the total average daily turnover (ADTO) experienced a 5 percent month-on-month decline, reaching 461 lakh crore, marking a significant 95 percent year-on-year increase. This decline was driven by a 5 percent MoM decrease in F&O ADTO and a 16 percent MoM decrease in cash ADTO. Retail cash ADTO notably dropped by 23 percent MoM to 40,700 crore, it noted.

Read here: What are the latest features available in demat accounts?

Despite this decline, the total ADTO from BSE saw an 8 percent MoM increase, fueled by growth in F&O volumes, while the total ADTO for NSE decreased by 7 percent MoM, MOSL further said. Also, commodity exchange MCX reported an overall ADTO gain of 10 percent MoM.

The brokerage also pointed out that in March, total volumes on the exchange surged to 26.8 lakh crore, with volumes in options and futures increasing by 5.7 percent MoM to 23.4 lakh crore.

In the primary market, nine IPOs collectively raised 5,800 crore, added MOSL.

 

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Maximize your investment returns Open Demat Account
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 12 Apr 2024, 05:28 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started