Benchmark Sensex, Nifty logged fourth straight monthly gain in June, their longest since October 2021
Mumbai, NFAPost: The number of active dematerialised (demat) accounts has crossed 120 million for the first time in June. The country’s two depositories — CDSL and NSDL — together added 2.36 million new accounts last month, the highest since May 2022.
The buoyancy in the secondary markets and traction in the primary market boosted the tally, said industry players.
The benchmark Sensex and the Nifty logged their fourth straight monthly gain in June to hit new record highs. This is the longest monthly winning run for the benchmark indices since October 2021 when they had gained for six straight months. The Nifty rose 3.5%, the Nifty Midcap 100 5.9 per cent and the Nifty Smallcap 100 6.6 per cent in June.
The month also saw the launch of half a dozen IPOs, many of which witnessed frenzied bidding by investors. The IPO of IKIO Lighting, ideaForge Technology and Cyient DLM saw more than a million applications each from retail investors.
Brokerage officials said several investors opened new trading and demat accounts for these IPOs.
Trading turnover in the equity cash segment also rose to its highest level in 14 months in June. Rising for a third straight month, the average daily turnover (ADTV) for both NSE and BSE cash segment stood at Rs 67,491 crore – the highest since April 2022. On a year-on-year basis, ADTV was up 42%, underscoring a turn in market sentiment. Meanwhile, the ADTV for the derivatives market recorded a fresh high of Rs 259 trillion (notional turnover for the options segment) —rising for the eight straight month.
“The surge in new demat accounts happens during market rallies. There is a direct correlation between new demat accounts being opened and market performance,” said V K Vijayakumar, chief investment strategist, Geojit Financial Services. “The sharp rise in the Nifty from the March lows and stories surrounding the consequent wealth creation is attracting new investors. This trend will continue so long as the market remains resilient.”
