Team Blitz India
MUMBAI: Maharashtra has retained the largest investor base at 14.9 million, while Uttar Pradesh and Gujarat came next with 8.9 million and 7.7 million investors. Karnataka, Tamil Nadu, West Bengal, and Rajasthan have around 4.7 million investors each.
The Indian equity market, however, added around 15.69 million investors so far this year, with Uttar Pradesh leading the pack with 2.31 million, outgrowing Maharashtra.
Growing enthusiasm in small caps and midcaps and a spate of public issues lured new investors, contributing to a spike of 26.85 million demat account additions in 2023, totalling 13.51 crore. Mutual funds recorded a significant surge, with SIP registrations more than doubling since 2020, soaring to 2.08 crore from 0.81 crore after Covid-19.
The surge in investors, especially in regions with lower penetration, is credited to rising awareness, digital ease in investing, and increased risk appetite.
As per analysts, the market has attracted investors with a 16 per cent rise in Sensex and 18 per cent in Nifty 50. The market, on par with global giants like the US and Japan, is gaining recognition. With over 1.3 billion people and a growing middle class, India offers an appealing market for companies aiming to expand.
Recently NSE chief executive highlighted India’s market growth, noting that it is the fifth-largest globally with a market cap of around USD 4.2 trillion, trailing the US, China, Japan, and Hong Kong.
He also talked of an intriguing shift as Uttar Pradesh outgrows Gujarat in the number of investors. The demographics of investors from UP align with the average Indian proportion in the stock markets, indicating evolving market dynamics.
