42 Lakhs Demat Opened In December 2023: How It Will Reflect In An Investment Boost?

Motilal Oswal Financial Services reports that as of December 23, there were 139 million demat accounts opened. Compared to average monthly additions of 2.1 million in FY23, new account additions spiked to 4.2 million in Dec'23. Dec. 23 saw CDSL maintain its growth in market share month over month both in terms of the overall number of demat accounts and incrementally. YoY, NSDL's market share in total/incremental demat accounts dropped by 320bp and 1,100bp, respectively.

The brokerage released a report stating that for the sixth straight month, the number of NSE active clients has risen. At NSE, there were 36.2 million active clients as of December 23, up 3.6% MoM. As of right now, the top five discount brokers represent 62.1% of all active NSE clients, down from 61.6% on November 23.

The average daily turnover (ADTO), which includes F&O ADTO, climbed by 18% MoM to INR401t, a 111% YoY growth. MoM, cash ADTO climbed 43%. Dec. 23 saw a 20% MoM increase in retail F&O ADTO and a 47% MoM increase in retail cash ADTO, bringing the total retail ADTO up to Rs 153t.

Regarding the performance of major discount brokers, Zerodha saw a slight month-on-month rise in its clientele to 6.7 million, but a 30 basis point decline in market share to 18.6%. ANGELONE announced a 20bp gain in market share to 14.8% and a 4.7% MoM rise in its clientele to 5.3 million. Upstox announced a little decrease in market share to 6.3% along with a 2.5% MoM gain in its clientele to 2.3 million. Groww reported growing its clientele to 7.6 million, a 7.2% MoM gain, and increasing its market share to 21%.

When it comes to the performance of key traditional brokers, ISEC recorded a 0.4% MoM reduction in the number of its clients, or 1.9 million, and a 5.2% decline in market share. IIFL Sec had a 0.5% month-on-month growth in its clientele to 0.4 million, but a 1.1% market share fall.

How Growth In Demat Account Will Reflect In An Investment Boost?

According to Mukesh Kochar, national head, Wealth, AUM Capital, the opening of this record demat account is due to fear of missing out (FOMO) factor. The market is trading at a record high and investors have made significant profit as the rally is broad-based. New investors are coming in by hearing the noise around to participate in the rising market. Buoyancy in the IPO market is also prompting these investors to open demat accounts to participate in these IPOs. The retail base has significantly increased post-corona and has supported the volume of the market heavily. New investors are coming from different parts of the countries including the small towns. Opening these accounts will further strengthen the retail volume and participation. Although a word of caution is important at this point in time. These investors should come to the market for a longer period of time with a mindset of regular investing and should avoid investing in penny stocks on rumours. Marker is at a lifetime high and volatility may increase from here onwards.

Disclaimer

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