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At 2.26 mn, February sees lowest demat account additions in 21 months

Worst rout in broader markets since Covid-19 impacts new investor influx

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Illustration: Binay Sinha

Abhishek KumarSundar Sethuraman Mumbai

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The influx of new investors into the stock market arena slowed to its lowest pace in nearly two years as the broader markets went through their worst-ever rout since the Covid-19 pandemic. In February, only 2.26 million new accounts were added, the lowest monthly addition since May 2023. The slowdown is attributed to the equity market correction and a decline in initial public offerings (IPOs).
 
The pace of demat account additions has been slowing down since July 2024, when it reached a high of 4.6 million. In January, 2.8 million accounts were added. The recent market volatility has severely dented