Demat account addition zooms on IPO frenzy

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The number of new demat account opened by investors has increased 17 per cent last month to 42 lakh from 36 lakh in June on the back of a growing frenzy to make quick money by investing in initial public offer,

The total number of demat accounts jumped to 16.2 crore against 15.8 crore in June. The monthly average addition of demat accounts was about 34 lakh as of June quarter in this fiscal, according to Motilal Oswal Financial Services report.

CDSL’s market share increased to 77 per cent against 73 per cent last year, while that of NSDL was down 4.20 per cent. The number of active clients on NSE increased 3 per cent month-on-month to 4.42 crore in June.

Excellent time

Mahavir Lunawat, Managing Director, Pantomath Capital Advisors, said it is an excellent time for the country’s thriving IPO market backed by robust economic foundation and bright growth prospects.

During the first half of this year, about 35 companies from diverse sectors such as co-working space to online ticket booking companies, have raised about ₹32,000 crore via IPO, he added. The top five discount brokers accounted for 64 per cent of total NSE active clients against 58 per cent in June.

Zerodha reported a 2 per cent m-on-m increase in its client count to 77 lakh, with a decline of 20 basis points in market share to 17 per cent.

Groww reported a 5 per cent m-on-m increase in its client count to 1.09 core, with a 55 basis points rise in market share to 25 per cent. Angel One and Upstox registered a rise of 3 per cent in client count to 67 lakh and 27 lakh, repsectively.

ICICI Securities reported a marginal increase in its client count to 19 lakh, with a 10 bp drop in market share to 4 per cent.

Daily turnover up

The average daily turnover increased 15 per cent mom (up 92 per cent yoy) to ₹499 lakh crore, with F&O ADTO rising 15 per cent and cash ADTO increasing 37 per cent mom.

The total ADTO of NSE increased 17 per cent while that of BSE was up 9 per cent led, largely by growth in F&O volumes.

The market share of BSE in cash segment jumped to 7 per cent against 6 per cent in May. BSE’s market share in the options declined to 22 per cent from 23 per cent in May and in options it was down to 9 per cent from 10 per cent in May.