Report: Total demat accounts rise to 11.6 crore in April; NSE active users fall 16.3% YoY

The Indian equity market staged a strong rebound in April with the benchmark Nifty50 index rising 4% during the month.

The rally was driven by strong inflows from the foreign institutional investors into the domestic market and signs of no further interest rate hike by the Reserve Bank of India (RBI) amid easing inflation.

Positive investor sentiment also led to an increase in daily trading activities with the total number of demat accounts increasing to 11.6 crore in April 2023.

However, the incremental number of new accounts added declined 18% MoM to 16 lakh during the month from 19 lakh in March, as per a report by domestic brokerage Motilal Oswal.

In terms of the total and incremental demat account market share, Central Depository Services Ltd (CDSL) continues to gain on a MoM basis.

Meanwhile, active users at National Stock Exchange (NSE) continue to decline further for the tenth consecutive month.

The total number of active user clients at NSE decreased by 16.3% YoY and 4.6% MoM to 3.12 crore in April.

The intensity of the fall was higher at 15 lakh accounts in April as compared to 9 lakh in the previous month.

As per the report, the top five discount brokers account for 60.1% of the overall NSE active clients, an increase from 60.0% in the previous month.

Moreover, the overall average daily turnover or the ADTO volume in the capital market increased by 3% MoM in April to ₹243 lakh crore driven by continued traction in the Futures & Options (F&O) segment and strong recovery in cash ADTO (excluding retail).

Overall retail ADTO rose 5% MoM to ₹92 lakh crore led by F&O ADTO that was up 6% MoM. However, cash ADTO dipped 7% MoM to ₹22,000 crore, the brokerage report added.