Demat account openings at record high, total accounts near 14 crore mark
Demat account additions is also being seen. In December, the total new Demat account openings touched a new high of 42 lakh, taking the number of total Demat accounts to 13.93 crore.
The addition of 42 lakh new accounts in December is 50% higher than what was seen in the month of November when 28 lakh.
The number of new Demat account openings is directly proportional to the surge in stock prices.
Typically, a bull market attracts more number of new investors and whenever the market hits a rough patch the number of active traders and investors also tends to decrease.
The calendar year 2023 saw the headline index Nifty ending at record high levels following a 20% surge. The rally was much sharper in the broader market where mid and smallcap indices went up around 50-55%.
Market data shows that FII inflows into Indian equities stood at $21.4 billion in CY23 vs outflows of $17 billion in CY22.
During the last eight years, FIIs have invested $51.8 billion cumulatively in the Indian market, with only two years of outflows.
DII inflows into equities in CY23 remained strong at $22.3 billion vs $32.2 billion in CY22. With just one year of outflows since CY16, DIIs have invested $102.8 billion cumulatively over the last eight years.
«As CY23 was marked by multi-year high-interest rates, concerns about banking crises in the US and Europe, and geopolitical uncertainties, CY24 is likely to see some moderation in these issues, especially in interest rates.
