BackNifty 50 rose 1.2% in April, additions in demat accounts number remain flat
Total demat accounts reached 154 million in April with 3.1 million new additions. CDSL strengthened its market position MoM, while NSDL lost market share YoY. NSE active clients increased by 2.6% MoM to 41.8 million in April 2024.
PremiumThe Nifty 50 surpassed the 22,600-point mark in April 2024, registering a 1.2% month-on-month (MoM) increase. However, the overall Average Daily Turnover (ADTO) saw a decline of approximately 3% MoM, amounting to ₹446 trillion.
This decline was primarily driven by a 3% MoM decrease in the ADTO of Futures and Options (F&O), while the ADTO of cash transactions increased by approximately 6% MoM. Retail cash ADTO surged by 8% MoM to ₹445 billion.
Demat Account Market Share
Besides, the total number of demat accounts surged to 154 million in April, according to a report by Motilal Oswal Financial Services, a domestic brokerage house. Despite this substantial increase, new account additions remained stable at 3.1 million, consistent with the average monthly additions observed throughout the fiscal year.
According to domestic brokerage house Motilal Oswal Financial Services, the total number of demat accounts jumped to 151 million in March 2024, with new account additions surging to 31 lakhs in February.
According to the brokerage's report, in April, CDSL continued to strengthen its market position, both in terms of the total number of demat accounts and its market share, showing a month-on-month (MoM) increase.
However, on a year-on-year (YoY) basis, NSDL experienced a decline, losing 400 basis points (bp) in total demat accounts market share and 470 basis points (bp) in incremental demat accounts market share.
NSE Active Clients
During April 2024, the number of active clients at NSE saw a notable uptick, rising by 2.6% month-on-month to reach 41.8 million. Presently, the top five discount brokers collectively represent 63.9% of the total NSE active clients, indicating a slight increase from 60.1% recorded in April 2023.
Broker Performance
Discount Brokers:
- Zerodha: Witnessed a 1.5% month-on-month (MoM) increase in its client count, reaching 7.4 million. Despite this growth, the company experienced a slight dip in market share, falling by 20 basis points (bps) to 17.7%.
- Groww: Reported a robust 4.1% MoM increase in its client count, reaching 9.9 million. This surge also saw an improvement in market share, rising by 30 bps to 23.7%.
- Angel One: Experienced growth, with a 3.1% MoM increase in its client count, reaching 6.3 million. Its market share saw a modest 10 bps rise to 15.1%.
- Upstox: Reported a 1.5% MoM increase in its client count, totaling 2.6 million, yet experienced a 10 bps fall in market share, now standing at 6.1%.
Traditional Brokers:
In contrast, traditional brokers saw mixed results.
- ICICI Securities: Reported a 0.9% MoM increase in its client count, reaching 1.9 million. Despite this, the company saw a slight decrease in market share, falling by -10 bps to 4.5%.
- IIFL Securities: Witnessed a 1.1% MoM increase in its client count, reaching 0.4 million, with its market share holding steady at 1.1%.
Primary Market Performance
The brokerage also highlighted the performance of the primary market, noting that in April 2024, a total of ₹255.6 billion was raised through four Initial Public Offerings (IPOs), which included the Vodafone Follow-on Public Offering (FPO).
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