The National Stock Exchange (NSE) reported a continued increase in the number of active users, reaching 3.49 crore in November compared to 3.39 crore in October. This marks the fifth consecutive month of growth in active users on the platform.
The bourse gained approximately 10.4 lakh active users in July, followed by 8 lakh in August, 6.1 lakh in September, 5.5 lakh in October, and another 10.34 lakh in November. This surge in active users is attributed to the sustained rally 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.
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The Indian markets saw a surge propelled by several factors, including robust GDP numbers, heightened foreign investor activity, significant victories for the Bharatiya Janata Party (BJP) in three states, and expectations of potential rate cuts by the US Federal Reserve in the upcoming year.
Since the beginning of April, both the flagship Sensex and Nifty indices have recorded approximately a 20 percent increase each. Meanwhile, the broader indices BSE MidCap and BSE SmallCap have witnessed even more significant gains, with advances of over 50 percent and 57 percent, respectively.
"We are in the throes of one of the biggest bull markets India has ever seen. Indian macroeconomic fundamentals are amongst the best the country has seen for a while and relatively much better than many of the large economies around the globe", said Devarsh Vakil. Deputy Head - Retail Research at HDFC Securities.
"We have seen large flows from domestic investors and now after the results of the state elections, we are getting foreign institutional investors are also chipping in. More money is chasing fewer stocks and that is resulting in higher stock prices across the board, whether blue-chips, midcaps, or small caps. Many investors are sitting on the sideline and waiting for the markets to correct and this means that even if prices do come down they will find buyers at the lower levels", Vakil added.
In November, around 27.80 lakh new demat accounts were opened with two depositories, CDSL and NSDL. The total count has also hit a fresh high of 13.51 crore amid continued rally in the local equities.
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