Demat account additions hit 13-month high in June

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mid-caps and small-caps also at record highs. As per analysts, in 2023 so far, Sensex and Nifty have climbed nearly 8% each while BSE Midcap and SmallCap have added around 15% each. There is some rotation of money that is also being witnessed, said Sandip Raichura, CEO of Retail Broking and Distribution & Director at Prabhudas Lilladher .

“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." The cash segment has seen good inflows and while foreign funds may also have invested, retail participation is likely to have increased significantly, too. Raichura expects the trend to continue and expects over 2 million additions every month, looking at the underpenetrated market.  Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, “Overall attractive returns from last few IPO’s followed by bullish undertone in frontline indices would continue to push demat demand." Lot of big sized IPOs are on cards which would attract more retail investors to the markets.

With neutrality in the geopolitical and economical situation the outlook remains positive for the medium to long term, Tapse said. Easing inflation and stabilizing interest rate scenarios would keep markets stable and optimistic, said analysts. Analysts at Jefferies India Pvt Ltd in their report have said that retail inflows over the last few months had slowed due to weaker trailing returns but that has now reversed which could improve inflows.

Also, low market volatility is a positive. They believe conditions are ripe for domestic inflows to pick up. During the previous