The Indian financial landscape has witnessed a remarkable transformation, particularly in the realm of demat accounts. As of September 2024, the total number of demat accounts in India surged to an impressive 17.5 crore, according to insights from Motilal Oswal Financial Services. This significant growth is attributed to the addition of 44 lakh new accounts in just one month, reflecting the increasing interest of investors in the stock market.

The trend of monthly additions has averaged around 40 lakh accounts for the financial year 2024-25, highlighting a sustained momentum in the growth of the demat account ecosystem. The surge in accounts is indicative of a broader interest in stock market investments among retail investors, supported by favorable market conditions and greater accessibility to trading platforms.

Central to this surge is Central Depository Services Limited (CDSL), which has managed to increase its share of total demat accounts. On the other hand, its counterpart, National Securities Depository Limited (NSDL), has faced challenges, experiencing a decline of 410 basis points (bp) in its total market share and a 90 bp drop in incremental demat accounts year-on-year.

Moreover, the number of active clients on the National Stock Exchange (NSE) also saw a positive uptick, reaching 4.79 crore, which translates to a 2.4% increase month-on-month (MoM). This growth in active clients underscores the robust participation of investors in the Indian equity markets.

Performance of Key Brokers

The performance of discount brokers has been particularly noteworthy, as they have captured a larger share of the active client base on the NSE. The top five discount brokers now account for 64.5% of total active clients on the NSE, a substantial rise from 61.9% in September 2023.

Zerodha added 1.1% MoM, reaching 80 lakh clients, although its market share decreased to 16.6%.

Groww reported a 3.1% increase, bringing its client count to 123 lakh and elevating its market share to 25.6%.

Angel One also saw a 3.1% growth, reaching 74 lakh clients with a market share of 15.4%.

In contrast, Upstox had a modest increase of 1.5%, totaling 28 lakh clients, while its market share dipped to 5.9%.

Among traditional brokers, ICICI Securities reported 19 lakh clients, with a slight 10 bp dip in market share to 4.2%. IIFL Securities maintained 5 lakh clients with a 1% market share.

F&O Volumes Surge

In terms of trading volumes, the total Average Daily Turnover (ADTO) witnessed a 7.1% increase MoM, reaching ₹538.6 lakh crore. Notably, Futures and Options (F&O) ADTO rose by 7.2%, while the cash ADTO experienced a decline of 3.8%. The Bombay Stock Exchange (BSE) reported a 16% MoM increase in total ADTO, primarily driven by the F&O volume growth, while the NSE's ADTO saw a 4.3% increase.

Despite these advancements, the market share of BSE in the cash turnover segment fell to 6.6% in September 2024, down from 7.4% in August 2024. However, there was a notable improvement in BSE's market share within the options notional turnover segment, which leaped to 26.8% from 7.4% in September 2023. Additionally, the options premium turnover share increased significantly from 2.3% to 13.3% during the same period.

This dynamic shift in the demat account landscape and trading volumes showcases the evolving nature of India's financial markets. The continuous rise in demat accounts and the growth of active clients signal a strong participation trend among retail investors, who are increasingly viewing the stock market as a viable avenue for wealth creation.

As the market continues to evolve, it's essential for investors to stay informed about the latest trends and insights. The potential for growth in the small-cap space, combined with the increasing accessibility of trading platforms, presents an opportunity for investors to tap into the burgeoning market.

For more updates on the best IPOs and latest news, explore the following resources: Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX.

This continued evolution in India's stock market landscape serves as a reminder for investors to remain adaptable and informed, paving the way for potential long-term growth and investment opportunities.