India is witnessing at least 30 million new demat accounts opening every year since 2021, and almost every one in four now is a women investor, meaning that there is increasing use of capital market as a channel of financialisation of savings, SBI(NS:SBI) Research said on Monday.
The report from the State Bank of India's Economic Research Department also stated that owing to this, the total demat accounts in the country crossed 150 million(of which 92 million are unique investors on NSE) in FY24 as compared to a paltry 22 million in FY14.
This year, the number of new demat accounts may cross the 40 million mark," said Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI, adding that apart from a few states, the participation of women increased more than national average in FY25 as compared to FY22.
Delhi (29.8%), Maharashtra (27.7%) and Tamil Nadu (NS: TNNP) at 27.5% are leading the pack with a female share that surpasses the pan-India average of 23.9% in FY25, while states such as Bihar at 15.4%, Uttar Pradesh at 18.2% and Odisha at 19.4% had sub-20% female share in their respective registered investor bases, the findings showed.
Declining mean/median age and increasing share of less than 30-year age persons reflects the influx of relatively younger investors in the markets over the last few years, driven by technological advances, lower trading costs, and increased access to information.
1 percent rise in market capitalisation leads to 0.06 percent rise in GDP growth rate.
The increasing share of mutual funds in financial savings has made them the most preferred instrument for financialisation of savings. The new SIP registered increased fourfold since FY18 to 4.8 crore, leading to total SIP contribution of around Rs 2 lakh crore.
In the last 10 years, Indian companies have managed to mobilise from capital markets significantly more than tenfold, moving from Rs 12,068 crore in FY14 to Rs 1.21 lakh crore till October of FY25.
The savings of households in 'Shares and debentures' has increased to 1 per cent of GDP in FY24, from 0.2 per cent in FY14 and the share in household financial savings has increased from 1 per cent to 5 per cent", the report mentioned.
A total of Rs 1.21 lakh crore of capital was raised from equity markets from 302 issues in FY25 (till October).
“The NSE market capitalisation has increased by more than 6x to Rs 441 lakh crore in FY25 (so far) as compared to FY14.
“Owing to this, the average trade size in the equity cash segment has increased from Rs 19,460 in FY14 to Rs 30,742 in FY25 (so far),” the SBI Research report mentioned.
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