According to domestic brokerage house Motilal Oswal Financial Services, the total number of demat accounts jumped to 15.1 crores in March 2024, with new account additions surging to 31 lakhs in the previous month.
The Indian benchmark Nifty rose 1.5 percent in March on the back of strong macro cues, hopes of a rate cut, continuous foreign investor inflows as well as overall positive global market trends. Moreover, the expectation of the current Narendra Modi government retaining a third term in the upcoming 2024 general elections also aided investor sentiment.
The brokerage also reported that in March, Central Depository Services Limited (CDSL) continued its upward trajectory, gaining market share both in terms of total demat accounts and on a month-on-month (MoM) basis. Conversely, National Securities Depository Limited (NSDL) experienced a decline of 390bp/570bp in total/incremental demat account market share year-on-year (YoY).
Meanwhile, the National Stock Exchange (NSE) saw a consistent rise in active clients for the ninth consecutive month, with the number increasing by 1.8 percent MoM to 4.08 crore in March this year.
The top five discount brokers presently hold 63.8 percent of the total NSE active clients, up from 59.9 percent in March 2023.
Experts attribute this surge in account openings to heightened investor interest in financial markets, driven in part by successful IPOs that have attracted new participants to the market.
Overall, in FY2024, India witnessed a notable surge in demat accounts, averaging 30 lakh additions monthly. Major depositories such as CDSL and NSDL recorded an 11.9 percent year-on-year increase, collectively reaching a total tally of 15.14 crore from 11.45 crore, highlighted MOSL.
Performance of brokers
In FY24, the performance of key discount brokers displayed a mixed picture, observed MOSL.
Zerodha observed a modest 0.9 percent month-on-month growth in its client count, reaching 73 lakh, yet experienced a slight decline of 20 basis points in market share, which stood at 17.9 percent. Upstox, on the other hand, reported a 0.6 percent MoM increase in its client count, reaching 25 lakh, but saw a minor dip of 10 basis points in market share, down to 6.2 percent. In contrast, Groww exhibited a notable 3.8 percent MoM surge in its client count, reaching 95 lakh, accompanied by a significant 50 basis points rise in market share, which climbed to 23.4 percent.
Among the key traditional brokers, ICICI Securities witnessed a 1.3 percent month-on-month decrease in its client count, totaling 18 lakh, along with a 15 basis points decline in market share, settling at 4.5 percent. Conversely, IIFL Securities reported a marginal 0.3 percent MoM increase in its client count, reaching 4 lakh, maintaining a market share of 1.1 percent, MOSL reported.
Overall ADTO declines
As per the brokerage, the total average daily turnover (ADTO) experienced a 5 percent month-on-month decline, reaching ₹461 lakh crore, marking a significant 95 percent year-on-year increase. This decline was driven by a 5 percent MoM decrease in F&O ADTO and a 16 percent MoM decrease in cash ADTO. Retail cash ADTO notably dropped by 23 percent MoM to ₹40,700 crore, it noted.
Despite this decline, the total ADTO from BSE saw an 8 percent MoM increase, fueled by growth in F&O volumes, while the total ADTO for NSE decreased by 7 percent MoM, MOSL further said. Also, commodity exchange MCX reported an overall ADTO gain of 10 percent MoM.
The brokerage also pointed out that in March, total volumes on the exchange surged to ₹26.8 lakh crore, with volumes in options and futures increasing by 5.7 percent MoM to ₹23.4 lakh crore.
In the primary market, nine IPOs collectively raised ₹5,800 crore, added MOSL.
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Published: 12 Apr 2024, 05:28 PM IST
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