New demat accounts exceed the 2 million mark in May

The number of demat account openings reached its highest level to date in 2023, with the opening of 2.1 million accounts in May.

Demat accounts exceeded 118.16 million, an increase of 1.8% from the previous month and a significant 25% increase from the same time last year.

But, only 1.60 million demat accounts were opened in April, given that market was quite volatile that time around, which was the lowest number since December 2020, according to data from NSDL and CDSL.

The increase in demat account openings is attributed by analysts to retail investors' renewed interest in the Indian equity markets as a result of the rally seen over the previous two months. The Indian markets enjoyed a rebound in optimism after a period of sluggishness brought by global attitudes.

The Reserve Bank of India's attitude on the interest rate situation is cited by analysts as a catalyst for this trajectory, as per Money Control.