India’s demat accounts climbed to 114 million in March 2023 but the incremental number or the rate of accounts growth fell 8 per cent month on month (MoM), Motilal Oswal Financial Services said in a report.
The volatility in the capital market in March was reflected in people’s sentiments as the Nifty remained near the 17,000 mark on most days.
The average daily turnover (ADTO) rose by 13 per cent to Rs 237 trillion compared to the previous month, while the futures and options (F&O) volumes grew by 17 per cent MoM with no such surge in cash volumes, the report said.
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In March, the demat accounts grew by 1.9 million compared to 2.1 million in February 2023. The report said that the average number of new accounts added per month in fiscal 2022 was 2.9 million, reflecting the slow growth in the number of accounts last month, or 8 per cent MoM decline in March.
Regarding market share, the National Securities Depository Limited (NSDL) lost around 230 basis points (bps) in market share and 730 bps in the incremental demat accounts year-over-year (YoY).
On the National Stock Exchange (NSE), active user clients declined for the ninth consecutive month to 32.6 million in March 2023, a 9.4 per cent decline over the year and a 2.7 per cent drop MoM. The decline in February was 0.7 million accounts and in March, it was 0.9 million. As per the report, the top five discount brokers which accounted for 59.6 per cent in February 2023 of the overall active clients on NSE rose to 60 per cent in March 2023.
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In the F&O segment, the ADTO increased by 146 per cent to Rs 237 trillion over the year and 13 per cent on an MoM basis. The overall surge in the ADTO was supported by the 13 per cent MoM increase in the F&O ADTO.
The retail cash ADTO stayed flat over the past month at Rs 237 billion in March 2023 and retail F&O ADTO rose 12.5 per cent MoM to Rs 87 trillion in March.
Performance Of Discount Brokers
Zerodha’s client count declined 8 per cent MoM to 6.4 million, whereas its market share rose by 37 bps to 19.6 per cent. Angelone, on the contrary, reported a 0.3 per cent growth in the number of clients to 4.3 million and a 13.1 per cent rise in market share.
Upstox reported a decline in the number of clients and market share by 8 per cent and 8.8 per cent, respectively. The client count for Upstox stood at 2.9 million. Groww reported a 66 bps surge in market share to 16.5 per cent. Its client count grew 1.4 per cent MoM to 5.4 million.
The market share of ISES and IIFL declined to 7.1 per cent and 1.5 per cent respectively. ISEC saw a 5.7 per cent MoM drop in client count to 2.3 million. IIFL Securities Ltd. saw a 13 per cent fall MoM in client count to 0.5 million.
