Total Demat accounts surge by 4.4 million to 175 million in September; Zerodha's market share declines

The total number of demat accounts in India surged to 175 million in September 2024, according to a report by Motilal Oswal Financial Services. This marks an increase of 4.4 million accounts added during the month, contributing to an average monthly addition of 4 million accounts for YTD FY25.

The report highlights a notable rise in demat account openings, with Central Depository Services Limited (CDSL) continuing to expand its market share. In contrast, National Securities Depository Limited (NSDL) experienced a 410 basis points (bp) decline in its market share for total demat accounts and a 90 bp drop for incremental accounts year-on-year (YoY).

The number of active clients on the National Stock Exchange (NSE) also saw a 2.4% MoM increase, reaching 47.9 million in September 2024. The top five discount brokers now account for 64.5% of the total active clients on the NSE, up from 61.9% in September 2023.

In September 2024, Zerodha's client count rose by 1.1% month-on-month to 8 million; however, its market share declined by 20 basis points to 16.6%. Conversely, Groww showed stronger growth, increasing by 3.1% month-on-month to a total of 12.3 million clients, which raised its market share by 15 bp to 25.6%.

Angel One also saw a 3.1% increase to 7.4 million clients, with a market share of 15.4%. Upstox rose 1.5% to 2.8 million clients, but its market share dropped to 5.9%.

Among traditional brokers, ICICI Securities reported a client count of 1.9 million, with a 10 bp dip in market share to 4.2%. Meanwhile, IIFL Securities had a client base of 0.5 million, holding a market share of 1%.

Surge in F&O volumes, decline in cash volumes

Total Average Daily Turnover (ADTO) rose 7.1% MoM to Rs 538.6 lakh crore, driven by a 7.2% increase in Futures and Options (F&O) ADTO, while cash ADTO fell by 3.8% MoM. BSE’s total ADTO grew 16% MoM, and NSE's increased by 4.3% MoM. BSE's market share in cash turnover dropped to 6.6%, but its share in options notional turnover rose to 26.8%.

Rise in commodity volumes

Commodity volumes on the Multi Commodity Exchange (MCX) increased 17.4% MoM to Rs 53.1 lakh crore, with options volumes at Rs 47 lakh crore. Key contributors included Crude Oil (20.5%), Gold (107.3%), and Natural Gas (27.2%). Futures ADTO also increased, driven by Gold (16%), Natural Gas (32.4%), and Crude Oil (22.6%), while Silver ADTO declined by 12% MoM.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)