NSE adds over 8 lakh active clients in August as count goes up for second straight month

According to data provided by the exchange, the count of active users on the platform reached 3.27 crore in August, up 2.5 percent from 3.19 crore in July. This accounts for a gain of 8.02 lakh active users.

The National Stock Exchange (NSE) added more than 8 lakh active users in August amid a continued market rally, taking the total count on the platform to 3.27 crore.

According to data provided by the exchange, the count of active users at 3.27 crore in August was up 2.5 percent from 3.19 crore in July, accounting for a gain of 8.02 lakh participants.

"The optimism in domestic markets continues to remain bullish, which has resulted in markets hitting all-time highs above 20K in the month of July 2023,” Prashanth Tapse, research analyst, Mehta Equities, said.

Mid and small-cap rallies tend to attract retail investors and increase the number of active retail investors participating in trades on the stock exchange, he said.

NSE added over 8 lakh active users in August 2023

After a year-long decline, NSE's active users increased for the second consecutive month, with a surge of over 10 lakh users in July.

At present, the top five discount brokers account for 60.8 percent of total NSE active clients, down from 61.2 percent a month ago.

"Primary markets are also equally responsible for bringing in more and more active users,” Tapse added.

This year, around 30 firms have came up with initial public offerings (IPOs) to raise around Rs 18,000 crore. In the SME space, over 100 firms listed and raised over Rs 2,500 crore.

In August, the Sensex and the Nifty fell nearly 2.5 percent each, while BSE midCap and smallCap jumped over 2.6 percent and 6.1 percent.

India’s biggest stock broker Zerodha reported a 0.5 percent month-on-month (MoM) increase in its client count to 64 lakh, while Angle One reported a 2.4 percent MoM increase to 47 lakh.

CDSL continued to gain market share in terms of the total number of demat accounts and also on an incremental demat basis. On a YoY basis, NSDL lost 260 basis points (bps)/810bps market share in total/incremental demat accounts.

One basis point is one-hundredth of a percentage point.

"After a prolonged dry spell, IPOs are back with good listing gains. This has brought retail investors back to the markets. And of course, new highs in the mid and smallcap segment bring new optimism and heightened participation" said Arun Chaudhry Chief Business Officer, m,Stock (Mirae Asset Capital Markets).