Indian Stock Markets surpass 10 crore registered investors, gaining 1 crore in just 5 months

In a significant milestone for India's financial markets, the National Stock Exchange (NSE) announced that the number of registered investors in the Indian stock markets has surpassed 10 crore as of August 2024. This remarkable achievement reflects the rapid growth and increasing participation of the Indian population in equity markets.

According to the NSE's report, the leap from 9 crore to 10 crore registered investors occurred in just five months, underscoring the swift pace at which new investors are joining the market. This influx means that an additional one crore investors entered the stock market in a remarkably short period, highlighting a growing trend of financial inclusion and a shift in investment preferences among Indians.

Several key factors have driven this surge in investor numbers. The report attributes the rise to increased digitisation, enhanced investor awareness, and improved market access, which have collectively made stock markets more accessible and appealing to a broader audience. Additionally, the robust returns from stocks over the past few years, particularly since the onset of the pandemic, have further attracted new investors.

"A combination of a rise in digitisation, investor awareness, improved market access, and its relative performance against other asset classes has driven increased market participation since the pandemic," the NSE report stated.

The report also places this growth in a historical context, noting that it took over 25 years for the Indian stock market to reach its first crore of registered investors. However, recent years have seen a dramatic acceleration in this trend, particularly with the influx of younger investors.

"It took over 25 years to have a crore investors, but the subsequent milestones have been crossed much sooner, with new investors predominantly in the 20-30 age bracket," the report added.

This rapid growth underscores a broader trend of financial inclusion and the evolving investment preferences among India's youth. The stock markets, once perceived as the domain of the financial elite, are now drawing a more diverse and younger demographic, enticed by the potential for higher returns and the convenience of digital trading platforms.