It is very much good for the nation that people are actively trading and investing in stocks and increasing the liquidity and cash flow in the country. There has been a drastic growth in the new Demat account numbers compared to the previous year which shows that there are new active investors in the market. In the 21st fiscal year when the epidemic raged, the stock market set a near-record rally.
Since April last year, brokers have added an average of 13,00,000 new Demat accounts every month, bringing the total number of retail investors to a record 6.97 million. From May 31 this year. After March of 2020, within a month after the WHO declared COVID-19 a global pandemic, the stock market fell by about 35%. Since June, the market has been in shock. The profit as of December was 15%, and the fiscal year ended in March was a historic 68%. This is the second-best result in history after 80% in 2008-09. It had previously reached 40% due to the global financial crisis.
Ashish Kumar Chauhan, CEO of BSE, told PTI that exchanges add 1.2-15 million new investors every month, for a total of 6.9 billion rupees. As of May 31, the country has more than 6.9 million Demat accounts.
Maharashtra and Gujarat are leading in terms of the number of investors and traders and next is Tamilnadu followed by Karnataka and then Bengal, Delhi, Telangana are listed, the metropolitan cities are covered.
The smallest territory, Lakshadweep, has the lowest number of Demat account holders, almost 480, after Andaman and Nicobar, after Andaman and Nicobar, at 9,700 accounts, according to BSE data, but most of those accounts are inactive. a quarter of the 4-million-rupee accounts were active.
According to Sebi’s guidelines, a Demat account that has not been used for a year for investing or trading is considered inactive. In fiscal 2021, Sensex jumped 20,040.66 points, or 68 percent, while Nifty was stuck at 6,092.95 points, or 70.86 percent, despite the pandemic crisis, a substantial 30 percent negative return in 2019-20 was. The rally in Fiscal Year 21 was the best after the rally in Fiscal Year 2009 when it increased 80 percent after falling 40 percent. Percent, after the global financial crisis that began in September 2007. The massive market rally was fuelled by record foreign investment, which poured a record $ 35 billion into stocks during the fiscal year.