In the fiscal year 2024, nearly 3.7 crore demat accounts were added, the highest ever, averaging over 30 lakh accounts per month, propelled by a market surge.
The number of demat accounts opened with CDSL and NSDL surged 11.9% year-on-year to 15.14 crore from 11.45 crore.
Sensex and Nifty50 rose 24.85% and 28.61% in FY24, while BSE Midcap and Smallcap indices surged 63.4% and 60% respectively.
New brokers and discount brokers focusing on expanding their account base also contribute to the trend. The addition of demat accounts is expected to continue unless the market faces a major downturn.
Investor interest in Indian stocks has surged, consistently outperforming global and emerging market equities. Additionally, the number of Rs 1-trillion mcap stocks has increased, attracting more institutional investors.
Despite extreme valuations driven by inflows into small and mid-cap stocks, sectors like industrials and staples remain resilient. Global investors remain interested in India due to its increased weightage in MSCI indices and supportive macroeconomics.
