Last Update: February 14, 2023, 18:22 IST
![In January, the number of active accounts on the NSE declined by 2.9 per cent month-on-month to 34 million. In January, the number of active accounts on the NSE declined by 2.9 per cent month-on-month to 34 million.](https://images.news18.com/ibnlive/uploads/2021/07/1627283897_news18_logo-1200x800.jpg?impolicy=website&width=510&height=356)
In January, the number of active accounts on the NSE declined by 2.9 per cent month-on-month to 34 million.
The incremental growth of demat accounts was 22 lakh in January, while it was 21 lakh in December, 18 lakh each in October and November and 20 lakh in September.
The number of demat accounts is set to rise to 110 million in January 2023, a 31 per cent year-on-year growth amid attractive returns from equity markets, ease of account opening process and increased financial savings. Also, the incremental growth of such accounts was higher in January as compared to the previous four months. However, it was still below the average run-rate of 29 lakhs for the financial year 2021-22 (FY22).
According to an analysis by Motilal Oswal Financial Services, the growth in such accounts was 22 lakh last month, compared to 21 lakh in December, 18 lakh each in October and November and 20 lakh in September. As per the data, the number of demat accounts is set to increase from 8.4 crore in January 2022 to 11 crore in January 2023, registering a growth of 31 per cent.
Market experts believe that the growth in demat accounts in the last one year is mainly due to the attractive returns offered by equity markets and the easy account opening process offered by brokers to their clients.
Apart from this, increase in financial literacy and growing popularity of trading among the youth have been some of the other major factors contributing to the growth. While the number of demat accounts continues to grow, the number of active clients of the National Stock Exchange (NSE) has been falling for seven months in a row. The number of active accounts on the NSE fell 2.9 per cent month-on-month to 34 million in January, marking its seventh consecutive monthly decline. On a year-on-year basis, the number of such active users increased by 2.7 percent.
The intensity of the decline was higher at 10.4 lakh accounts in January as compared to 7 lakh in the previous three months. Currently, the top five discount brokers – Zerodha, Angel One, Groww, ICICI Securities and IIFL Securities – account for 59.2 per cent of the overall NSE active clients during the period under review, down from 59.3 per cent in December.
Meanwhile, the perception of the capital market India Inc was negative in January along with NSE’s benchmark indices smelly A month-on-month decline of 2.9 percent. However, volatility increased towards the end of the month in anticipation of the Union Budget announcement.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)