NSE client base surges past 20 crore mark; young investors lead market growth

Recently, the National Stock Exchange (NSE) announced that its total client accounts exceeded 20 crore, a remarkable growth from the 16.9 crore figure it was at just eight months ago. The achievement underscores India's rapidly evolving investment landscape and growing retail participation in capital markets.

"This expansion reflects strong investor confidence in India's growth story," said Sriram Krishnan, Chief Business Development Officer at NSE. He attributed this growth to the widespread adoption of mobile trading applications and increasing investor awareness, aptly supported by government digital initiatives that have democratized market access, particularly benefiting investors from Tier 2, 3, and 4 cities.

While Maharashtra led the list with 3.6 crore accounts, UP was next with 2.2 crore accounts, followed by Gujarat with 1.8 crore accounts. Rajasthan and West Bengal also made it to the list with 1.2 crore accounts each. Notably, these five states collectively account for approximately 50% of total client accounts, while the top ten states represent about three-quarters of the total registrations.

Additionally, the unique registered investor base on NSE stood at 10.5 crore, having crossed the 10-crore mark on August 8, 2024.

Young investors take the lead

Another notable trend that emerged from NSE's latest report is the significant increase in young investor participation. The proportion of investors under 30 years has nearly doubled, rising from 22.9% in March 2018 to 40% by September 2024. Middle-aged investors, aged between 30 and 39, have maintained their participation in the markets, albeit with a slight hit.

On the other hand, investors aged between 40 and 49 have witnessed a dip in market participation, dipping to 15.5% in September 2024, as opposed to 20.3% as of March 2018. Similar downtrends were noticed in other age brackets as well, namely 50-59 and 60+ age cohorts.

Financial analysts suggest that younger investors bring a new dynamic to the market, often favoring high-growth, technology-driven investments. In contrast, older investors have traditionally leaned toward more stable and conservative options.