The Indian equities market rebounded well in April, with the benchmark Nifty50 index climbing 4%. The rise was fueled by robust inflows of foreign institutional investors into the domestic market and indications that the Reserve Bank of India (RBI) would not raise interest rates further in the face of declining inflation. Positive investor optimism also increased daily trading activity, with the total number of demat accounts rising to 116 million in April 2023.
According to a study by local brokerage Motilal Oswal, the number of new accounts created fell 18% month on month to 1.6 million in April, down from 1.9 million in March.
“This figure is significantly lower than the average new accounts added per month in FY23 (average of 2.1m),” according to the brokerage.
Central Depository Services Ltd (CDSL) continues to grow its total and incremental demat account market share on a monthly basis.
Meanwhile, active users at the National Stock Exchange (NSE) continue to fall for the ninth month in a row. In April, the overall number of active NSE user customers fell by 16.3% year on year and 4.6% month on month to 31.2 million.
The autumn was more intense in April, with 1.5 million accounts lost compared to 0.9 million the previous month.
According to the data, the top five discount brokers account for 60.1% of all NSE active customers, up from 60.0% the previous month.
Furthermore, the capital market’s total average daily turnover or ADTO volume climbed by 3% MoM in April to 243 lakh crore, powered by ongoing traction in the Futures & Options (F&O) sector and a robust rebound in cash ADTO (excluding retail).
Overall retail ADTO increased 5% year on year to 92 lakh crore, led by F&O ADTO, which increased 6% year on year. However, cash ADTO fell 7% MoM to 22,000 crores, according to the brokerage report.
