scorecardresearchNumber of new demat accounts increases at sluggish pace in past 10 quarters

Number of new demat accounts increases at sluggish pace in past 10 quarters

Updated: 07 Oct 2022, 12:37 PM IST
TL;DR.
During the second quarter, 6.1 million new accounts were added, taking the total to 102.6 million. At 6.3 per cent quarter-on-quarter, the growth rate was lowest since the lockdown-hit Q1FY21. Read further to know more on this
The highest growth — both in percentage and absolute terms — was during Q3FY22, when both the Nifty50 and Sensex had hit their lifetime highs

The highest growth — both in percentage and absolute terms — was during Q3FY22, when both the Nifty50 and Sensex had hit their lifetime highs

Growth in the addition of demat accounts during the September quarter of the 2022-23 financial year was the slowest since Q1FY21, reported Business Standard.

During Q2, 6.1 million new accounts got added, taking the total to 102.6 million. At 6.3 per cent quarter-on-quarter (QoQ), the growth rate was lowest since the lockdown-hit Q1FY21, which had logged 5.7 per cent QoQ growth. In absolute terms, the growth rate was lowest since Q4FY21, when 5.3 million new accounts had been added.

The equity markets have seen wild swings over the past year, amid a pivot towards aggressive monetary tightening by global central banks to rein in inflation. The benchmark Nifty50 is currently 6 per cent below its lifetime high of 18,477, hit on October 18, 2021. Last month, the demat account tally had topped 100 million for the first time.

Market observers say brokerages have become less aggressive in chasing clients, given a high cost of acquisitions and growing inactivity among retail investors. Moribund primary markets have also weighed on demat account additions.

During Q2FY23, only four initial public offerings (IPO) hit the market, mobilising only 2,965 crore.

First Published: 07 Oct 2022, 12:37 PM IST