Demat account additions cross 40 lakh for the fourth time in June; NSE active clients up by 3%

In a significant uptrend, the total number of Demat accounts surged to 16.2 crore in June 2024, according to a report by Motilal Oswal Financial Services. As per the report, new additions spiked by 42 lakh in June, marking the highest account opening rate since February 2024. This indicates a 4.24 percent increase from the previous month and a substantial 34.66 percent rise compared to last year.

In comparison, Demat account additions were 36 lakh a month ago and 23.6 lakh a year ago. So far FY25 has seen an average monthly growth rate of 34 lakh.

June's additions mark the fourth time that new account additions have exceeded 4 million. Similar milestones were previously reached in December 2023, January 2024, and February 2024.

Notably, CDSL strengthened its market share in total Demat accounts month-on-month (MoM), while NSDL saw a decline of 420 basis points (bp) in total Demat accounts and 620 bp in incremental Demat accounts year-on-year (YoY), stated the report.

NSE active clients increase sequentially

MOSL also noted that the National Stock Exchange (NSE) reported a 3.1 percent MoM increase in active clients, reaching 4.42 crore by June 2024. Among the leading discount brokers, the top five now command 64.4 percent of total NSE active clients, up from 58.2 percent in June 2022.

Key discount brokers showed varied performances, pointed out MOSL: Zerodha recorded a 2.1 percent MoM client increase to 77 lakh, with a slight dip in market share to 17.3 percent. Meanwhile, Groww saw a robust 5.4 percent MoM rise to 1.09 crore clients, boosting its market share to 24.7 percent. Angel One and Upstox also reported increases of 3.4 percent (67 lakh clients) and 2.7 percent (27 lakh clients) MoM, respectively.

On the traditional brokerage front, ICICI Securities and IIFL Securities reported modest MoM client growth of 0.8 percent (19 lakh clients) and 0.6 percent (4 lakh clients), with minor declines in market share, informed MOSL.

BSE’s F&O ADTO increases MoM

In derivatives trading, BSE's Futures & Options (F&O) average daily turnover (ADTO) surged 15 percent MoM, contributing to a total ADTO increase of 9 percent MoM. Meanwhile, NSE's ADTO rose 17.1 percent MoM.

Furthermore, BSE's market share in the total cash turnover segment increased to approximately 7.2 percent in June 2024, up from 6.4 percent in May 2024, while its share in the options notional turnover fell slightly to around 22 percent, added the brokerage.

Total volumes dip 10.7% on a MoM basis

The brokerage also highlighted that total volumes on the Multi Commodity Exchange (MCX) dipped by 10.7 percent MoM to ₹36.6 lakh crore in June 2024, with OPTFUT volumes declining by 9.7 percent MoM to ₹31.4 lakh crore. Despite this, overall ADTO increased by 2.7 percent MoM to ₹1.8 lakh crore, driven by a rise in Options ADTO, particularly in Crude Oil, Natural Gas, and Silver, while Gold ADTO saw a significant decline of 46 percent MoM.

These insights reflect dynamic shifts in market participation and trading volumes across different segments amid evolving investor preferences and market conditions.