Number of BSE-registered investors see a jump of 27% YoY in 2023. What does it mean for the market?

livemint.com:

BSE Midcap index soared by 46 per cent, while the Smallcap index surged by 48 per cent, showcasing remarkable market resilience and investor confidence. The remarkable performance of the domestic market this year can be attributed to several factors, including a strong macroeconomic environment, anticipated rate cuts, and increased foreign capital inflows. However, a standout factor has been the significant surge in the number of retail investors, which has played a pivotal role in driving the market's stellar performance thus far.

Data show the number of registered investors with BSE has jumped over 27 per cent year-on-year (YoY) to 3.3 crore as on December 30, 2023. A noteworthy trend emerged as the count of investors witnessed a substantial increase in states like Bihar (42 per cent YoY) and Uttar Pradesh (41 per cent YoY), underscoring the growing participation of smaller towns in the investment landscape. The introduction of mobile-first platforms has completely changed how people trade and invest, making it much simpler.

Experts point out that these platforms offer easy sign-up, quick transfers using UPI, and easy-to-use interfaces for trading. They've made it possible for all Indians to join in investing in stocks, leading to more regular people getting involved in the market. Furthermore, the quest for supplementary sources of income alongside the widespread adoption of the work-from-home culture in the post-COVID era, allowing for more spare time to pursue personal interests, has also been a significant contributing factor to the remarkable surge in the count of retail investors.