Demat Account Open: There is a record increase in the number of people investing in the stock market every month. In the last month i.e. July, about 30 lakh new demat accounts have been opened with two depositories – CDSL and NSDL. At the same time, this figure is the highest since January 2022 and is about 50 percent more than the average of 20 lakhs in the last 12 months. In this case, more than 18 months of demat accounts have been opened in July.
This number has reached a new high of 12.35 crore due to the record increase in demat accounts in July. Significantly, with the increase in the number of retail investors in the equity market, the number of demat accounts increases, because without a demat account, investment in the equity market cannot be done.
The interest of retail investors in the equity market is influenced by market sentiments. Recently, the micro-cap and small-cap indices have outperformed the Nifty and the Sensex, reviving general interest in equities. For the last few months, the market is witnessing a boom. There has been a record rise in Sensex and Nifty and they have reached new levels.
The stock market has seen a correction since a few sessions and both the benchmark indices Sensex and Nifty have seen a decline in seven out of nine trading sessions. Despite this, investor participation is unlikely to subside. Some experts believe that the corporate is expected to make good profits in the coming times.
On the valuation side, Nifty is trading at about one-year forward earnings, at a slight premium to long-term average multiples, but much lower than the best valuations. In such a situation, experts believe that earnings are going to be very strong in a few years. Some analysts are hopeful that the situation will remain good even further due to the addition of new customers. At the same time, some more new investors will join the stock market.