UP beats Maharashtra with most D-St debutants as market adds 15.7 mn investors

Stock Market Today

The Indian equity market added around 15.69 million investors so far this year, with Uttar Pradesh leading the pack with 2.31 million, outgrowing Maharashtra.

Maharashtra, however, retains the largest investor base at 14.9 million, while Uttar Pradesh and Gujarat come next with 8.9 million and 7.7 million investors. Karnataka, Tamil Nadu, West Bengal and Rajasthan have around 4.7 million investors each.

Growing enthusiasm in smallcaps and midcaps and a spate of public issues lured new investors, contributing to a spike of 26.85 million demat account additions in 2023, totaling 13.51 crore. Mutual funds recorded a significant surge, with SIP registrations more than doubling since 2020, soaring to 2.08 crore from 0.81 crore after Covid-19.

Read: Larsen & Toubro bags large orders in Middle East

The surge in investors, especially in regions with lower penetration, is credited to rising awareness, digital ease in investing, and increased risk appetite.

Analysts said the market has attracted investors with a 16 percent rise in Sensex and 18 percent in Nifty 50. The market, on par with global giants like the US and Japan, is gaining recognition. With over 1.3 billion people and a growing middle class, India offers an appealing market for companies aiming to expand.

In a recent CNBC interview, NSE chief executive and managing director Ashish Chauhan highlighted India's market growth, noting that it's the fifth-largest globally with a market cap of around $4.2 trillion, trailing the US, China, Japan and Hong Kong.

Read: FirstCry parent Brainbees files IPO papers with SEBI; M&M to sell 28 lakh shares

He also talked of an intriguing shift as Uttar Pradesh outgrows Gujarat in the number of investors. Chauhan observed that the demographics of investors from UP align with the average Indian proportion in the stock markets, indicating evolving market dynamics.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.