India’s stock market continues to shine on the global stage, reflected in the growth of Demat accounts across the country. According to a report from Motilal Oswal Financial Services, the total number of demat accounts reached an impressive 179 million in October, up from 175 million in September. However, the report noted a slowdown in new account additions, which fell to 3.5 million for the month. This marks the first time in four months that monthly additions have dipped below 4 million, with an average of 3.9 million new accounts added monthly in the current fiscal year.
Growth in active clients and market trends
The number of active clients on the National Stock Exchange (NSE) showed positive momentum, rising 2.4% month-on-month to 48.9 million in October. The report also highlighted the performance of Central Depository Services Limited (CDSL), which gained market share in both total and incremental demat accounts during the month. In contrast, National Securities Depository Limited (NSDL) experienced a year-on-year decline, losing 400 basis points in total market share and 210 basis points in incremental accounts.
The dominance of discount brokers continues to shape the landscape, with the top five brokers holding a combined 64.5% of the total NSE active client base, up from 61.4% in October 2023.
Performance of leading brokerage firms
Among the prominent online brokerage firms, Zerodha saw modest 1.2% month-on-month growth in its client base, reaching 8.1 million clients, although its market share decreased slightly to 16.5%. Groww experienced a stronger 2.8% increase, pushing its client count to 12.6 million and boosting its market share to 25.8%. Angel One posted a 2.4% month-on-month increase in its client numbers, holding a stable market share of 15.4%.
Upstox added 1.4% more clients in October, bringing its total to 2.9 million, despite a slight decline in market share to 5.8%. Traditional brokers also reported gains; ICICI Securities recorded a 0.7% increase in clients, reaching 1.9 million and maintaining a 4% market share. Kotak Securities and HDFC Securities saw monthly client increases of 2.8% and 3.2%, respectively, holding their market shares steady at 3% and 2.7%.
This upward trend in Demat account numbers and active client growth indicates sustained investor interest, even as new account growth slows. The performance of both discount and traditional brokerage firms highlights a competitive yet expanding investment landscape in India.
