Dematerialized (Demat) accounts hit a 13-month high in the month of June 2023 at 120.50 million after over 2.36 million new users opened their accounts as per the data by Central Depository Services and National Securities Depository.
The surge is a result of a robust rally in the domestic equity market driven by a sustained foreign portfolio. India’s benchmark indices suffered a fall for the first time in nine sessions as rate hikes in the US weighed on global equities. Sensex and Nifty grew 1.5% each this week, and the border markets were also the part with small and midcap witnessing record highs. As per analysis Sensex and Nifty have climbed at 8% each while BSE Midcap and Smallcap contributed to 15% each.
Sandeep Raichura, CEO of Retail Broking and Distribution at Prabhudas Lilladher said, “We had seen investors’ enthusiasm investing in many of the new age IPOs, which saw correction in stock prices thereafter correcting post listing. However, of late have seen a smart rebound and hence there is some rotation of money taking place, now.”
Raichura has expected the trend to continue and predicted the addition of over 2 million new customers every month.
Group of Analysts at Jefferies India Pvt Ltd in their detailed report has highlighted that retail inflows have witnessed a slow trend due to weaker trailing returns but now is in a reverse which is improving inflows. Low market volatility is positive.
