India's total demat accounts continue to rise, with over four million being added in August, data from depositories showed. According to NSDL and CDSL, the country saw over a four-million rise in the total number of demat accounts last month to 171.1 million. This was also because the demat count got a boost from record IPOs in August.
In fact, last month alone, 10 companies raised about Rs 17,000 crore through IPOs. An average of four million demat accounts have been added since 2024, per month. As many as 3.2 crore demat accounts have been opened in the first eight months of the current year. The reason for the opening of demat accounts in large numbers is also new IPOs in this calendar year. More than 50 companies have mopped up Rs 53,419 crore through IPOs since the start of 2024 as on August 31.
A report prepared by Securities and Exchange Board of India (SEBI) said a majority of investors are opening the demat accounts to participate in IPOs alone. The study underlined that nearly half of the demats used to apply for IPOs between April 2021 and December 2023 were opened post the pandemic. In 2024, the bourse has given excellent returns to investors. Since the beginning of this year, Nifty surged about 15 per cent and 27 per cent in the last one year. The Sensex has rallied by 13 per cent since the beginning of this year and 24 per cent in the last one year.
The rising tide in the Indian stock market is only a reflection of the strengthening economy. India's GDP growth rate was 8.2 per cent in the financial year 2023-24, estimated to be 7.2 per cent in the financial year 2024-25.
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