In the month of July, a whopping 30 lakh new demat accounts were opened with the two leading depositories, Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL). This figure is the highest since January 2022 and represents a significant 50% increase compared to the previous 12-month average of 20 lakh account openings.
The surge in the equity markets seems to have fuelled this spike in new demat accounts
The total demat accounts have reached a new high of 12.35 crore, reflecting the increasing participation of retail investors in the stock market.
The renewed interest among retail investors can be attributed to the remarkable performance of micro-cap and small-cap indices, which have outpaced the Nifty and Sensex, reigniting a general interest in equities.
Despite recent market corrections, with both the Sensex and Nifty experiencing declines in seven out of nine trading sessions, analysts remain optimistic about India's multi-year economic upcycle.
Also Watch: Demat account openings soar in June as equity markets surge