Even as some states are flourishing faster than others as far as per-capita income is concerned, stock market investments from those states are not always higher.
Taking growth in number of investors from a state as proxy to growing investment towards the stock market, the data for 2023 shows the attraction towards equities is uneven.
Odisha, a state with low stock market penetration and which saw 16 percent annual income growth in FY23, also saw one of the highest growth in stock market investors. In Telangana, where income growth was similar, investor growth was one of the lowest in the country.
Similarly, two states - Punjab and Meghalaya - having the lowest income growth, has seen relatively more number of investors gravitating towards stock markets.
MC Markets Graphixstory: NE states, UTs see biggest growth in unique investors this year
In the last three years, the stock market has become hugely popular. Demat accounts in the country has surpassed 13 crore mark, but given the 143 crore population of the country, the penetration is less than 10 percent. This compares with above 60 percent penetration in developed countries such as the United States.
In India, Maharashtra and Gujarat have been traditional hotspots for stock market investors. Delhi and Chandigarh also feature among the top states, especially in proportion to their population. Now, Uttar Pradesh too has seen a rapid growth in investors.
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