A period of ups and downs continues in the Indian domestic stock market. For the last one and a half month, Sensex and Nifty were closing in the red. At the same time, a rally was seen in the market in the last trading week. A rise was seen in both the indexes. Amidst this market situation, a report came out in which it has been said that retail investors are losing confidence in the market. There has been a decline in the number of demat accounts.
According to the report of Motilal Oswal Financial Services, there has been a huge decline in the number of demat accounts. The number of demat accounts has reached 179 million in October 2024, but there has been a huge decline in the number of accounts being added every month. According to the report, the number of newly added accounts has declined by 3.5 million in October.
Decline in NSDL users
However, even amidst the market turmoil, CDSL has maintained its numbers in both demat account and incremental account. At the same time, the market share of NSDL has declined by 400 basis points year on year in demat accounts and by 210 basis points in incremental accounts. Incremental accounts mean those accounts which were created but stopped investing after the fall in the market. In the month of October, the market had fallen by 10 percent due to selling by foreign investors.
Customers are increasing on NSE
On one hand there has been a decline in the number of demat accounts. On the other hand, there has been an increase in the number of people trading on the National Stock Exchange. Active users on NSE are increasing at the rate of 2.1 percent year on year and by October 2024, their number will increase to 48.9 million. Groww and Angel One have registered the fastest growth among major discount brokers. The number of Zerodha customers increased by 1.2 percent on a monthly basis to 8.1 million. However, its market share has declined by 15 basis points to 16.5 percent. Additionally, Grow’s subscriber base grew 2.8 percent month-on-month to 12.6 million, increasing its market share by 20 basis points to 25.8 percent.