Bullish market helps NSE record sustained rise in active users to 3.39 cr in Oct

The platform has seen continuous growth in active users since July, with additions of around 10.4 lakh in July, 8 lakh in August, 6.1 lakh in September, and 5.5 lakh in October

The National Stock Exchange (NSE) reported that the number of active users increased to 3.39 crore in October from 3.34 crore in September, marking the fourth straight month of rise.

The bourse added around 10.4 lakh active users in July, 8 lakh in August, 6.1 lakh in September, and 5.5 lakh in October, thanks to the sustained momentum in the equity market.

Stock exchanges define an active user as one who has punched at least one trade in the past year. This number is net of new additions.

Indian markets have soared since April on the back of improved macroeconomics, while global equities faced volatility due to anticipated extended higher rates by the US Federal Reserve, coupled with continuous selling by foreign investors in local equities. Despite this, several brokerages have upgraded their outlook, signaling positivity. Morgan Stanley, CLSA, Nomura, and JP Morgan have all increased their ratings or allocations for India.

Morgan Stanley cites better economic and earnings growth, CLSA raised its India portfolio by 20 percent, Nomura highlights a strong narrative and benefits from the China+1 trend, and JP Morgan points to positive factors like general elections, strong emerging markets (EM) GDP growth, and a deeper bond market reducing risk premiums.

Since the start of April, both flagship Sensex and Nifty indices jumped around 10 percent each, while broader indices BSE MidCap and BSE SmallCap advanced over 35 percent and 39 percent.

The significant rise in Indian markets has resulted in a spike in new demat accounts. In October, around 26.8 lakh new demat accounts were opened across CDSL and NSDL, pushing the total count to a record high of 13.24 crore.