The National Stock Exchange of India (NSE) recently celebrated a significant milestone as its unique registered investor base crossed the 10-crore (100 million) mark on August 8, 2024. This achievement underscores the rapid expansion of India's investor community, which now boasts a total of 19 crore client codes, reflecting accounts registered with the Exchange.
The growth trajectory of investor registrations at NSE has been nothing short of remarkable. It took 14 years for the investor base to reach the 1-crore mark from the Exchange’s inception. However, the pace of growth has since accelerated dramatically.
The next crore was added in seven years, followed by a rapid addition of investors every few years. Notably, the most recent increments have been even faster, with each of the last several crore investors being added in just 6-7 months on average, and the latest crore in just over five months.
This surge in investor participation is driven by several factors, including the rapid digitization of financial services, increased investor awareness, and robust market performance. Daily new registrations have consistently ranged between 50,000 to 78,000, contributing to a threefold increase in the investor base over the last five years.
During this period, the benchmark Nifty 50 index has delivered a return of 11.8%, while the Nifty 500 index has posted an impressive 16.2% gain. Over the past five years, these indices have generated annualized returns of 17.5% and 21.1%, respectively.
A closer look at the demographic data reveals that the median age of registered investors is now around 32 years, down from 38 just five years ago, indicating a growing interest in the stock market among younger individuals. Additionally, nearly 20% of investors are women, reflecting a gradual shift toward gender diversity in the market.
Geographically, North India led the charge in new registrations, accounting for 42% of the last crore investors, followed by the West, South, and East regions. Maharashtra, Uttar Pradesh, and Gujarat remain the top states in terms of investor numbers.
The rise in indirect market participation has also been notable, with 2.1 crore new SIP (Systematic Investment Plan) accounts opened between March and June 2024. Average monthly SIP inflows have risen to approximately Rs 20,452 crore, a significant increase from the previous six-month period.
Sriram Krishnan, Chief Business Development Officer at NSE, credited this growth to streamlined Know Your Customer (KYC) processes, enhanced financial literacy, and sustained positive market sentiment. The broadening participation in various financial instruments, including equities, ETFs, REITs, and bonds, further underscores the deepening investor engagement in India’s capital markets.
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