The equity cult in India continues to spread in India with undiminished momentum with the National Stock Exchange of India (NSE) recording a total of 20 crore client accounts in October. It hardly needs emphasising that Maharashtra, the state with the largest economy in India, leads the country with the largest number of accounts – 3.6 crore.
The equity markets which have been on an upswing before October, when a degree of correction was witnessed, have also achieved another landmark in the month of August. On August 8, 2024, the total number of unique registered investor base – in other words, the number of distinct investors – exceeded the 10-crore mark and later surged to 10.5 crore, a number that could have made the 16th most populous country in the world.
States with the highest number of equity investors
Beyond the layer of the headline figure of 20 crore client accounts lies another impressive achievement – that as many as 3.1 crore accounts were added in a matter of 8 months in the country.
While Maharashtra, the financial capital of India, led the way with 3.6 crore accounts, the second rank was taken by the state of Uttar Pradesh (2.2 crore), the most populous state of the country. The third rank on this list went to Gujarat with 1.8 crore, while Rajasthan and West Bengal became the joint fourth place holders with 1.2 crore each. What is significant that these 5 states together account for 10 crore or half the client accounts in India.
Largest share of investors below 30
The total number of registered investors stood at 9.5 crore in May 2024. What’s more interesting is that more than 40.1% of these investors were — hold your breath — less than 30 years of age. All the other age groups who invest in the stock markets in India constitute a far smaller share of the number of investors. Interestingly, in 2018, those below 30 constituted only 22.9% of the equity investors in the country.
Strong investor confidence
Elated at the new milestone, the chief business development officer of NSE Sriram Krishnan has commented that the spread of the equity cult is indicative of a robust confidence in the continuation of the India growth story. While there are tailwinds in the form of policy push and structural changes like digital transformation, factors such as enhanced financial literacy programs and the proliferation of new investment instruments including equities, ETFs, REITs, InvITs, and various bonds, have boosted the investment climate.
