Ziraat Times News Desk
India’s stock market exuberance and a rising fear of missing out (FOMO) among retail investors have pushed new demat account registrations to a 10-month high, with over 30 lakh accounts opened in October, according to data from NSDL and CDSL. This marks a 22% jump from September’s 24.6 lakh new accounts.
The surge has lifted the total number of live demat accounts across both depositories to a record 21 crore, up from 20.7 crore in the previous month — an indicator of deepening retail participation in the financial markets.
Markets Rebound, Investors Rush In
The jump in account openings comes on the back of a broader market bounce. Benchmark indices Sensex and Nifty rose nearly 3% in October, while the BSE MidCap and SmallCap indices gained 4% and 3%, respectively.
Puneet Singhania, Director at Master Trust Group, attributed the renewed retail interest to buoyant domestic liquidity and an evolving investment mindset. “More investors are now shifting from managed products to direct equity participation,” he said, noting that the rise comes despite steady inflows into mutual fund SIPs.
He added that the pattern reflects a familiar trend: retail entry peaks when markets are rising. With headline indices hovering near all-time highs and IPO activity remaining robust, investor enthusiasm has intensified even as valuations appear stretched.
Multiple Accounts Fuel the Surge
Another major driver behind the spike is the growing practice of investors opening multiple demat accounts across brokerage platforms, said Krishna Patwari, Founder and Managing Director of Wealth Wisdom India.
However, he cautioned that despite the rise in overall additions, the NSE recorded a decline in active clients, with the top 25 brokers losing around 57,000 accounts in October. Total active accounts slipped to 4.52 crore, suggesting that many newly opened accounts may not yet be fully engaged.
October Marks One of the Busiest IPO Seasons
A flood of public offerings also contributed to the heightened retail activity. October emerged as one of the most active IPO months of the year, with 33 companies raising ₹39,140 crore across the main board and SME platform.
The largest fundraises included:
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Tata Capital – ₹15,511 crore
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LG Electronics – ₹11,600 crore
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WeWork India – ₹3,000 crore
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Canara HSBC Life Insurance – ₹2,517 crore
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Orkla India – ₹1,668 crore
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Rubicon Research – ₹1,378 crore
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Canara Robeco Asset Management – ₹1,326 crore
