Markets hit new milestones, robust surge in active traders as investor numbers soar

Mumbai, Aug 15: Indian stock markets are experiencing robust growth as the number of investors rapidly increases. However, despite this surge, the number of active participants remains relatively low compared to the total registered users, though it has been rising steadily since March.

According to a report by the National Stock Exchange (NSE), out of the 9.7 crore registered investors, only 1.5 crore are active. The report highlights that active investors on the NSE surged by 13.9 per cent month-on-month, reaching 1.5 crore in June. This marks the third consecutive month of growth in active market users.

The NSE report shows that the number of individuals trading at least once a month grew by 13.1 percent in June compared to May, reflecting a strong trend in market participation.

"The number of individual investors who traded at least once in June increased across regions. This individual investor base rose by 13.9 per cent month-on-month to reach 1.5 crore in June 2024," the report noted.

It also points out that there has been a steady rise in active domestic investors after a decline earlier in the year, particularly in March.

As of June, the number of active domestic market investors on the NSE from the top 10 states--Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Rajasthan, Karnataka, Delhi, Tamil Nadu, Madhya Pradesh, and Haryana--stood at 1.2 crore. Maharashtra led the increase in June, significantly contributing to the new and active investor base in the stock markets.

"Following a decline in March 2024, the count of individuals who traded at least once has been on a steady rise, increasing by 13.1 per cent month-on-month to 1.2 crore for the top 10 states in June 2024," the NSE report stated.

The report also noted a year-on-year growth in the number of registered investors. The total number of registered users reached 9.7 crore at the end of June, up from approximately 7.6 crore the previous year.

"The total number of registered investors stood at 9.7 crore at the end of June, up from around 7.6 crore at the same time last year," the report added.

Region-wise, Southern and Eastern India saw significant increases, with active investor bases rising by 16.8 per cent month-on-month to 29.1 lakh and 15.6 per cent month-on-month to 16.7 lakh, respectively.

The Northern and Western regions also experienced growth, with investor bases reaching 55 lakh and 56 lakh, respectively, in June 2024. The data illustrates a broad and continuing expansion in investor participation across various regions of India.