New Demat Account Additions Hit 13-Month High In June

June has recorded the highest addition of demat accounts in the last 13 months as new investors have been rushing to the market to make their investments, according to data by Central Depository Service (CDS) and National Securities Depository (NSD).

The number of demat accounts opened in June totalled over 2.36 million, which marks the highest demat account opening since May 2022, as compared to 2.1 million addition in May this year. This number is also 60,000 up in June this year as compared to last year's same period.

The total demat account tally has crossed 120.51 million, soared by 2% from a month ago and 24.41% from a year ago. 

The Indian equity market has witnessed a remarkable growth trend in the month of June FY24, which may be the one of the key driving factors attracting new investors in the Indian market.

Both Sensex and Nifty have risen over 14.2% and 15%  since 28 March while BSE Midcap and SmallCap have surged over 24% and 27% respectively. So far this year, both Sensex and Nifty have gained nearly 8% each while BSE Midcap and SmallCap climbed nearly 15% each.

"This surge in the market was not limited to the Nifty50 alone, as the broader markets, including mid-cap and small-cap stocks, also exhibited strong performances. Multiple parameters, such as trading volumes, order flow, and client additions, gained significant momentum during this period. This positive momentum indicates the growing confidence and participation of investors in the market. As long as the market maintains its resilience, this trend is expected to persist,” Hemang Jani, an independent market analyst, was quoted as saying by MoneyControl.