Demat Accounts Surge: 4.4 Million Added In September

In September 2024, the total number of demat accounts in India reached a remarkable 175 million, as reported by Motilal Oswal Financial Services Limited (MOFSL). This surge included the addition of 4.4 million new accounts within the month alone, indicating a consistent trend of growth with an average monthly increase of 4 million accounts year-to-date for the fiscal year 2025.

The report emphasizes a significant rise in the opening of demat accounts, particularly highlighting the performance of Central Depository Services Limited (CDSL), which has been steadily expanding its market share. In contrast, National Securities Depository Limited (NSDL) faced a decline, experiencing a reduction of 410 basis points in its market share for total demat accounts and a 90 basis point drop for incremental accounts on a year-on-year basis.

Moreover, the National Stock Exchange (NSE) reported a month-on-month increase of 2.4% in active clients, bringing the total to 47.9 million as of September 2024. This growth has shifted the landscape, with the top five discount brokers now accounting for 64.5% of all active clients on the NSE, a noticeable increase from 61.9% in the same month the previous year.

In terms of individual broker performance, Zerodha, a leading discount broker, saw its client base grow by 1.1% month-over-month, reaching a total of 8 million clients. However, this growth was accompanied by a slight decrease in market share, which fell by 20 basis points to 16.6%. On the other hand, Groww displayed stronger momentum with a 3.1% increase in clients, bringing its total to 12.3 million and enhancing its market share by 15 basis points to 25.6%. Angel One also reported a positive trend, with a 3.1% rise in clients to reach 7.4 million, maintaining a market share of 15.4%. Upstox registered a 1.5% increase in its client base, reaching 2.8 million, though its market share decreased to 5.9%.

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Among traditional brokers, ICICI Securities noted having 1.9 million clients, which represented a decline of 10 basis points in its market share, bringing it down to 4.2%. Conversely, IIFL Securities reported a client base of 0.5 million, holding a market share of 1%.

In the broader market context, the Bombay Stock Exchange (BSE) experienced a substantial month-on-month surge in its total Average Daily Turnover (ADTO), which increased by 16%. The NSE also saw a respectable 4.3% month-on-month rise in its turnover. However, BSE’s market share in cash turnover dipped to 6.6%, while its share in options notional turnover increased significantly to 26.8%.

The commodity markets also displayed vibrant activity, with volumes on the Multi Commodity Exchange (MCX) rising by 17.4% month-on-month to ₹53.1 lakh crore. The options volumes played a significant role, contributing ₹47 lakh crore to this total. Key commodities driving this growth included Crude Oil, which rose by 20.5%, Gold with an impressive 107.3% increase, and Natural Gas at 27.2%. Furthermore, futures Average Daily Turnover (ADTO) saw positive trends, led predominantly by Gold at a 16% increase, Natural Gas at 32.4%, and Crude Oil at 22.6%. However, Silver experienced a slight downturn, with ADTO declining by 12% month-on-month.

The data paints a comprehensive picture of the thriving demat account landscape in India, reflecting the growing participation of retail investors in the financial markets, alongside the performance dynamics of various brokers and exchanges. This momentum indicates a robust environment for investment and trading in the coming months.

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