You are here: Home » Markets » News
Business Standard

A million new demat accounts opened for third straight month, shows data

The surge in new account openings has been underpinned by the rally in stocks

Topics
demat accounts | Coronavirus | Investors

Samie Modak 

Experts say aggressive stimulus measures announced by global central banks helped investors look beyond the worst economic outlook in more than 40 years
September is also expected to see good addition in new accounts

A million new dematerialised accounts were opened for a third straight month in August, taking the total retail accounts tally to 44.46 million. Since the start of the year, close to 6 million have got opened, a record for any calendar year, say industry participants.

The surge in new account openings has been underpinned by the rally in stocks. From the Covid-19 lows in March, the benchmark indices had jumped more than 50 per cent. Several individual stocks have more than doubled luring many towards direct investing.

Chart

Ease of account openings, thanks to online-eKYC and user-friendly mobile trading apps, too, supported the trend. Also, with many officegoers working from home, they have extra free-time to trade, say industry watchers. About 1.01 million new accounts were added in August, slightly less than 1.11 million in the previous month.

September is also expected to see good addition in new accounts. However, it remains to be seen how the latest bout of volatility impacts retail investors’ sentiment. Excluding Friday’s 2.3- per cent rebound, the benchmark indices had dropped 7 per cent in previous six trading sessions.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, September 27 2020. 20:34 IST
RECOMMENDED FOR YOU
.