Active investors rose 25% on NSE in last one year

With stock indices reaching new highs, cash market turnover reaches Rs 18,000 crore a day

The number of active investors on stock exchanges has been on the rise over the last one year. According to exchange data, the number has jumped 25 per cent.

The National Stock Exchange (NSE), the country’s largest stock exchange (in trade volumes), as on April 30, 2015, had about 5.2 million active clients for all stock brokers of the exchange. Similar data on the BSE was not immediately available. India has around 25 million registered clients across exchanges.

The western region, comprising Maharashtra, Goa and Gujarat, has recorded the highest growth of 32 per cent in number of people actively trading in the cash market, according to a statement from the NSE. The cash market is the segment where people buy and sell shares primarily with a long-term view on listed companies.

Dinesh Thakkar, chairman and managing director of Angel Broking, said, “Key market indices appreciated nearly 30 per cent, while mid-cap and small-cap segments rose about 60 per cent. This has led to churning by investors and also new investors stepped in. It is reflecting in the increase of demat account openings, which surged to 8 per cent in the second half of FY15 against four-five per cent in earlier years. The new government’s policies and expectation of inflation coming down resulting into cut in interest rates have brought in confidence among investors in stock markets.”

According to an NSE statement, Maharashtra has seen the highest increase in retail clients trading at 38 per cent on its platform. While Gujarat witnessed a 50 per cent jump in value terms - highest in the country, it said. Collectively, the cash market turnover reached a new high of Rs  18,000 crore a day.

Other metros such as Kolkata and Delhi also are continuing to grow. During the year, CNX Nifty reached above 9,100-mark, while the BSE’s Sensex had surpassed the 30,000-level.

The rise in retail activity in stock market was also said to have been fueled by a number of Initial Public Offers (IPOs) in the last one year. Several offers for sale (OFS) from companies like Coal India (CIL), Rural Electrification Corporation (REC) and Steel Authority of India (SAIL) also saw good responses from the retail segment.

Retail interest was also seen growing in the stock associated with the mid-cap segment. On an average, the mid-cap and small-cap indices have outperformed the Nifty and the Sensex, which track larger stocks.