With local equity markets providing optimistic returns, new investors rush to open Demat accounts, with June recording the maximum addition of such accounts in 13 months.

According to reports from the Central Depository Service and National Securities Depository, the Demat accounts numbers opened in June totalled over 2.36 million, marking the uppermost account opening rate since May 2022, versus 2.1 million additions a month ago and 2.3 million a year ago. The aggregate Demat tally crossed 120.51 million, up 2% from a month ago and 24.41% from a year ago.

Equity markets have practised an outstanding resurgence in the June quarter of FY24, with the Nifty50 index surpassing the 19,500 points milestone for the first time. Both Sensex and Nifty plunged over 14.2% and 15% since 28 March, while BSE Midcap and SmallCap progressive over 24% and 27%, respectively. So far 2023, both benchmark Sensex and Nifty gained 8% while BSE Midcap and SmallCap climbed nearly 15% each.

The combined average daily turnover (ADTV) of the BSE and NSE cash segment in June hit a one-year high to trace Rs 67,491 crore, a 42% jump yearly, while ADTV for the derivative market recorded a fresh high of Rs 259 lakh crore.
The IPO market observed an important rise in activity in June, with five mainboard share sales saving great subscriptions and raising Rs 2,588 crore. Analysts anticipate that more IPOs will align, suggesting a continual trend of heightened IPO activity.

Notably, the SME section also skilled a surge in share sales, with 17 issues opening in June alone. Since 2023 start, 73 SME issues have been launched, raising about Rs 1,804 crore.