New Delhi: Amid the continued promoting within the Indian inventory markets, the expansion within the demat accounts additionally declined in October, highlighted a report by ICICI SecuritiesThe report highlighted that after a powerful four-month interval the place month-to-month additions to demat accounts exceeded 4 million, October 2024 noticed a decline in new demat accounts.
It additionally added that the whole variety of accounts added in October fell to three.45 million, down from 4.36 million in September 2024. This dip breaks the streak of regular progress in demat accounts, suggesting a doable shift in investor sentiment or market situations.
“Demat accounts additions fall below 4mn after four months After four consecutive months of more than 4mn demat accounts additions in a month” the report mentioned.Among depositories, the Central Depository Services Limited (CDSL) maintained a powerful lead in market share.
In October 2024, CDSL’s share of complete and incremental demat accounts stood at 79 per cent and 90 per cent, respectively. Meanwhile, particular person investor exercise confirmed combined developments in September 2024 throughout totally different market segments.
The report acknowledged that the variety of particular person buyers actively buying and selling within the National Stock Exchange (NSE)’s money market elevated barely. In September, 15.8 million particular person buyers traded at the very least as soon as, marking a 1.9 per cent enhance from 15.5 million in August.
Over the primary half of the monetary yr (6MFY24), a complete of 29.4 million people participated at the very least as soon as within the money market, in comparison with 30.7 million for the complete FY24. However, participation within the fairness derivatives section noticed a downturn. The variety of particular person buyers buying and selling at the very least as soon as in a month on the NSE’s fairness derivatives section dropped by 3.6 per cent in September, falling to 4.46 million from 4.66 million in August.
For the primary half of FY24, a complete of 8.7 million people participated within the derivatives market, a decline from 9.6 million for all the FY24. This decline signifies a diminished curiosity in derivatives buying and selling amongst particular person buyers, probably as a result of elevated volatility or altering market preferences.
The report mentioned, “A total of 29.4mn individuals have participated at least once in 6MFY24 vs 30.7mn in FY24. Individual investors, who traded at least once in a month on NSE’s equity derivatives segment, declined 3.6% MoM in Sep’24 to 4.46mn vs 4.66mn in Aug’24”.
The dip in each new demat accounts and derivatives participation amongst particular person buyers suggests a cautious outlook amongst retail contributors.As world financial situations stay unsure home markets face volatility amid the continued promoting by overseas buyers.
