Demat account openings in FY24 reach a record high; nearly 3.70 crore accounts opened

As much as 3.70 crore demat accounts were added in fiscal year 2024, taking the count to a record high. The monthly average of new demat accounts was more than 30 lakh registrations, owing to a market surge, which was due to: 

>> Increase in India's weightage in MSCI indices.

>>Increased interest of Foreign Institutional Investors (FII).

>>Rise in investment in equity mutual funds among young investors at the broker and depository levels. 

As per the data, total demat accounts will reach 15 crore by March 31, 2024. 

Source: ZeeBiz Research

As per reports, in December too, the total new demat account openings touched a new high of 42 lakh, taking the number of total demat accounts to 13.93 crore.

The addition of 42 lakh new accounts in December is 50 per cent higher than the accounts in November, when 28 lakh new accounts were added.

The number of new demat account openings is directly proportional to a surge in stock markets. Typically, a bull market attracts more new investors, and whenever the market hits a rough patch, the number of active traders and investors also tends to decrease.

The Nifty in a year has gained over 28 per cent, whereas the BSE Sensex has been up over 24 per cent. 

Source: ZeeBiz Research

Indian benchmark indices Sensex and Nifty 50 began their respective trading sessions on Friday (April 5) with a downward trend, mirroring the losses witnessed in global markets. 

On Thursday, however, domestic equity indices broke a two-day downtrend and concluded higher ahead of the RBI monetary policy decision. Sensex declined by 267 points to 73,956, while Nifty 50 declined by 73 points to 22,451 in early trade on Friday. 

Despite this, Nifty 50 formed a small negative candle on the daily chart, indicating substantial resistance at new all-time highs. 

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