NSE Registers Sustained Jump in Active Users in October ’23

As per the National Stock Exchange (NSE),  the number of active users has witnessed an uptick of 3.39 crore in October 2023, compared to  3.34 crore in September 2023. This marks the fourth straight month of rise.

About 10.4 lakh active users were added in July 2023, 8 lakh in August, 6.1 lakh in September, and 5.5 lakh in October. This was driven by sustained momentum in the equity market.

Typically, stock exchanges define an active user as an individual who has punched at least one trade in the past year. The particular number is net of new additions.

Indian markets have experienced a spike since April 2023. This has been driven by improved macroeconomics as against global equities that faced volatility due to anticipated extended higher rates by the US Federal Reserve, coupled with continuous selling by foreign investors in local equities. 

However, several brokerages have upgraded their outlook, underscoring a positive outlook. For example, Morgan Stanley, CLSA, Nomura, and JP Morgan have all raised their ratings or allocations for India.

Morgan Stanley anticipates better economic and earnings growth, CLSA raised its India portfolio by 20%, Nomura predicts a strong narrative and benefits from the China+1 trend, and JP Morgan cites positive factors, which include the impending general elections, strong Emerging Markets (EM) Gross Domestic Product (GDP) growth, and a deeper bond market reducing risk premiums.

From the beginning of April 2023, benchmark indices such as S&P BSE Sensex and NSE Nifty surged to about 10% each. On the other hand,  broader indices such as BSE MidCap and BSE SmallCap witnessed an uptick of 35% and 39%, respectively.

The considerable surge in Indian markets has fuelled a rise in new demat (dematerialised) accounts. In October 2023,  about 26.8 lakh new demat accounts were opened across Central Depository Services Ltd (CDSL) and National Securities Depository Ltd (NSDL), giving a fillip to the total count to a record high of 13.24 crore.

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