The rally witnessed in the Indian stock market for the last four months has managed to bring retail investors back into the market. New investors are also entering the market due to better performance of mid-cap and small-cap segments as well as entry of several quality IPOs in the primary market. This resulted in a significant increase in demat openings in June, reaching a 13-month high.

According to data from Central Depository Service and National Securities Depository, two depository service providers in the country, 23.6 lakh new demat accounts were opened in June. Which was the highest on a monthly basis since May 2022. In May 2022, 23 lakh demat accounts were opened. Whereas a month ago in May 2022, 21 lakh demat accounts were opened. Thus, 2.6 lakh more demat accounts were opened on a monthly basis. At the end of June, the number of demat accounts in the country stood at 120.51 million. Which shows an increase of 2 percent on a monthly basis and 24.41 percent on an annual basis.

With the beginning of the new financial year in April, there has been a strong boom in the stock market. The benchmark Nifty traded at its all-time high of 19,524 on Friday. While the Sensex was seen at an all-time high of 65,898. Since March 28, Sensex and Nifty have shown a return of 15 per cent. They have registered sharp outperformance as compared to the global markets. The mid-cap and small-cap segments have outperformed the large-caps. The BSE Midcap index is showing a strong growth of 24 per cent while the Smallcap index is showing a growth of 27 per cent. Talking about calendar 2023, the Nifty is up 8 per cent while the BSE Midcap and Smallcap indices are showing returns of 15 per cent. Thus, there has been an increase in the activity of retail investors due to exposure to the broader market. Apart from this, the IPO market has also revived. Investors also entered the market through the primary market, with dozens of being listed on the main board at a premium in May and June. Due to high activity in IPOs on MSE platform also a new segment is entering the market. Five IPOs in June Rs. There was a collection of 2,588 crores. Whereas in calendar 2023 SME IPO Rs. Rs 1,804 crore was raised.

According to analysts, as long as the market remains strong, new retail investors will keep coming into the market. The post-Covid boom in the Indian market has attracted a large section of investors to the stock market and the total number of demat accounts in the country has grown from 45 million to over 120 million in three years. The combined average daily turnover of BSE and NSE in June was Rs. 67,491 crore at a one-year high. Which shows an annual growth of 42 percent. For the derivatives market, the average daily turnover of both the platforms was Rs. 259 lakh crore was observed.

Rahul Dev

Cricket Jounralist at Newsdesk

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