The Indian headline indices, Sensex and Nifty, have recently hit new highs, marking a significant surge in the number of equity investors across the country.
Although, the traditional centers like Mumbai and Ahmedabad, along with states like Maharashtra, Uttar Pradesh, Gujarat, and Rajasthan, still dominate in terms of the number of investors in the country but a significant surge is also seem non-traditional regions, including the northeastern states and smaller cities.
Expansion of Investor Base
According to the recent data from the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), it highlights that the investor base in the country is on a continuous growing mode. Over the past year, states and union territories with the highest growth in new investors include:
Expansion of Investor Base |
These regions benefited significantly from a low base effect, despite Tripura, Jammu & Kashmir, and Bihar already having investor bases in the hundreds of thousands.
Top States and Cities
Maharashtra leads with nearly 3.35 crore investors, followed by Uttar Pradesh, Gujarat and so. These are the five states with more than a crore registered investors each.
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According to NSE data, the top ten districts for new investor additions in May 2024 included:
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Uttar Pradesh led the states with 2.6 lakh new registrations in May 2024, marking a 15.5 per cent month-on-month increase (MoM). Maharashtra followed with close to 2.2 lakh new registrations, a surge of 51 per cent year-on-year (YoY) growth and a 17.5 per cent MoM increase.
Monthly Growth Trends
The concentration of new investor registrations in the top 10 districts rose marginally in May 2024, with these districts accounting for 19.4 per cent of the total new registrations, compared to 19 per cent in April 2024. The number of registrations in these districts increased by 19.6 per cent MoM to 3.4 lakh.
Monthly Growth Trends |
This trend highlights that the Indian stock market's performance has spurred a significant rise in the number of investors, particularly in non-traditional regions.
