Markets stayed volatile in February 2023, with the Nifty declining by 2 per cent month-on-month (MoM) after swinging between 17,300 and 18,000.
The capital market’s retail average daily turnover or ADTO volume stood flat at Rs 77 trillion month-on-month (MoM) in February, whereas retail cash ADTO improved by 5 per cent MoM to Rs 239 billion after a 9 per cent dip in January, investment services provider Motilal Oswal said in its monthly tracker.
Demat accounts rose by 2.1 million in February 2023, which has been steady for the past three months but lower than the average of 2.9 million in FY22.
There were a total of 113 million Demat accounts as of February 2023, which is an increase of 30 per cent year-on-year (YoY) and 2 per cent MoM.
Conversely, according to the report, the number of active users on NSE fell for the eighth straight month to 33.6 million in February from 34.3 million in January.
While the total/incremental demat account market share stayed steady MoM, the National Securities Depository Ltd. (NSDL) lost 230/190 basis points YoY.
NSE Active Accounts Decline
Active accounts on the National Stock Exchange (NSE) continued to decline MoM, down 2.1 per cent to 33.6 million but 2.7 per cent higher YoY.
It was the eighth consecutive month of decline.
In addition, the top five discount brokers accounted for 59.6 per cent of the overall active clients on NSE, an increase from 59.2 per cent MoM.
The performance of the top discount brokers in client count has been mixed.
Zerodha reported a 1 per cent MoM decline in its client counts to 6.4 million, with a 19.2 per cent market share. Likewise, Upstox saw a 7.2 per cent MoM decline to 3.2 million, with a 9.4 per cent market share.
ANGELONE reported a 0.9 per cent MoM increase to 4.3 million, with a 12.7 per cent market share. Groww saw a 1.6 per cent MoM increase to 5.3 million, with a 15.8 per cent market share.
Key traditional brokers, like ISEC and IIFL Sec, also saw a decline in client counts. The former reported a 4 per cent MoM decline to 2.5 million, while the latter witnessed a 12.3 per cent MoM decline in its client count to 0.6 million.
Retail Cash ADTO Recovers
The retail average daily turnover or ADTO volume surged 107 per cent YoY to Rs 209 trillion, lifted by a jump in futures & options (F&O) ADTO and Cash ADTO.
Retail cash ADTO recovered by 5 per cent to Rs 239 billion MoM after a 20 per cent drop in January 2023. Retail F&O ADTO was flat at Rs 77 trillion MoM.