Over 42 lakh new demat additions in June; total demat accounts cross 16 crore

Analysts said the markets are stable, with a newly formed government ensuring confidence in its continuity. This stability encourages investors to flock to equity markets.

Also as tax filing season approaches, people consider diversifying into equity to potentially increase returns and offset high tax liabilities. Brokers' campaigns promoting financial inclusion further drive interest.

A bullish broader market, with strong returns and no correction in sight, lures new investors. Analysts see room for more demat accounts, indicating growth potential. Additionally, ongoing IPOs, heavily subscribed and often listing at premiums, are also attracting fresh investors, spurring the opening of new demat accounts.

Rajesh Palvia, an analyst at Axis Securities, anticipates the Nifty to reach 25,000 around the Budget period and aims for a year-end target of 28,000.

Analysts further said as long as the markets perform strongly, the pace of opening demat accounts shows no signs of slowing down. Also, the market has surged from 70,000 to 80,000 post-election, prompting individuals to fear missing out on the rally and thus driving them towards investing in the markets and opening demat accounts.

Deepak Jasani, analyst at HDFC Securities, said, of the over 40 lakh new additions, not all are entirely new investors; some may be shifting between brokers or opening multiple accounts with different brokers. A small portion could involve duplicate or multiple demat accounts. Reasons for new demat openings include seeking better deals from one broker to another or dissatisfaction with previous brokers.

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