Overview of Demat Accounts in India
As of September 2024, the total number of demat accounts in India has reached an impressive 175 million, according to a report by Motilal Oswal. This remarkable growth story showcases an addition of 4.4 million new accounts within just one month. The trend indicates a steady average of 4 million accounts added per month throughout the fiscal year 2025, highlighting a growing interest among retail investors in India’s capital markets.
Market Dynamics: CDSL vs. NSDL
The report further indicates a significant rise in the opening of demat accounts, primarily driven by Central Depository Services Limited (CDSL), which continues to strengthen its foothold in the market. Conversely, National Securities Depository Limited (NSDL) has faced challenges, with its market share for total demat accounts declining by 410 basis points (bp) and a 90 bp decrease in incremental accounts on a year-on-year (YoY) basis. This transition underscores a shifting landscape in the demat account space in India.
Growth of Active Clients on NSE
In September 2024, the National Stock Exchange (NSE) reported a month-on-month increase of 2.4% in active clients, totaling 47.9 million. This growth can be attributed to the rising participation of retail investors, with the leading five discount brokers now accounting for 64.5% of all active clients on the NSE, a notable increase from 61.9% recorded in September 2023. This consolidation of client base among discount brokers highlights the changing preferences of investors and the growing importance of cost-effective trading options.
Performance of Leading Brokers
Among the prominent players, Zerodha saw a month-over-month growth of 1.1%, reaching a client base of 8 million. However, despite adding new clients, Zerodha experienced a slight decrease in market share, dropping by 20 basis points to 16.6%. On the other hand, Groww showcased stronger performance with a 3.1% increase in clients to a total of 12.3 million, reflecting a growing market share of 25.6%, up by 15 basis points. Similarly, Angel One reported a client base growth of 3.1%, reaching 7.4 million and holding a market share of 15.4%. Upstox also witnessed an increase of 1.5%, reaching 2.8 million clients, yet its market share slightly declined to 5.9%.
Traditional Brokers in the Scene
Focusing on traditional brokers, ICICI Securities reported a client base of 1.9 million, with a slight decline in market share by 10 basis points, bringing it to 4.2%. IIFL Securities, meanwhile, stands at a client base of 0.5 million with a market share of 1%. These adjustments highlight evolving client preferences as they gravitate towards more modern trading solutions and digital platforms.
Growth in Futures and Options (F&O) Volumes
In terms of trading volumes, the Total Average Daily Turnover (ADTO) saw a robust increase of 7.1% month-over-month, reaching ₹538.6 lakh crore. This growth was predominantly driven by a 7.2% rise in Futures and Options (F&O) ADTO, suggesting heightened trading activity and investor interest in derivative instruments. On the contrary, cash ADTO experienced a decline of 3.8% month-over-month, reflecting a shifting focus among traders.
Exchange Performance: BSE and NSE
The Bombay Stock Exchange (BSE) reported a significant jump in total ADTO, soaring by 16% month-over-month, while the NSE also registered a 4.3% increase. Despite BSE’s market share in cash turnover dipping to 6.6%, its share in options notional turnover increased impressively to 26.8%, indicating a robust performance in derivative trading compared to traditional cash markets.
Commodity Trading Insights
Turning to commodity trading, volumes on the Multi Commodity Exchange (MCX) increased substantially by 17.4% month-over-month, reaching ₹53.1 lakh crore. Options volumes played a crucial role, amounting to ₹47 lakh crore. Key contributors to this growth included Crude Oil, which grew by 20.5%, Gold showing a remarkable increase of 107.3%, and Natural Gas rising by 27.2%. Additionally, futures Average Daily Turnover (ADTO) surged, led by Gold (16%), Natural Gas (32.4%), and Crude Oil (22.6%), although Silver ADTO experienced a 12% decline month-over-month, indicating varied market dynamics across different commodities.
