4 Crore New Investors Enter Stock Market in 1 Year: 32% from Bihar, Madhya Pradesh, and Uttar Pradesh, 62 Lakh from Maharashtra

The number of retail investors, holding demat accounts, has witnessed a significant increase of 4.03 crore (31.23%) over the course of a year. Among these, 1.28 crore (32.16%) are new investors from Bihar, Madhya Pradesh (MP), Rajasthan, and Uttar Pradesh.

These states were previously considered economically lagging and categorized as ‘ailing’ states. However, they have now shown remarkable progress, contributing to the surge in retail investors. In contrast, economically prosperous states like Tamil Nadu, Karnataka, Kerala, and Telangana have witnessed a modest increase, with only 52.10 lakh (12.92%) new retail investors.

Uttar Pradesh Surpasses Gujarat to Become the Second Largest Hub of Share Investors

In just one year, Uttar Pradesh has added 57.24 lakh new investors, bringing the total number of investors in the state to 1.81 crore. Surpassing Gujarat and trailing only behind Maharashtra, Uttar Pradesh has emerged as the second-largest contributor to the pool of share market investors. 

Maharashtra leads with a total of 3.19 crore investors, while Gujarat’s share market boasts a total of 1.60 crore investors.

Contrasting Trends: Kerala’s Modest Growth and Karnataka’s Robust Surge in Share Investors

In a span of just one year, Kerala has seen a marginal increase of only 7.08 lakh new investors, maintaining its status as one of the wealthiest states in the country with the same figure. 

In contrast, Karnataka has witnessed a significant surge in share market investors, adding 19.02 lakh new investors in the last year alone. However, Maharashtra still leads the charts with a total of 62.64 lakh investors.

Exponential Growth in Demat Accounts Over Three Years

Over the course of three years, the number of demat accounts has tripled. In the same period, the count of demat accounts has tripled as well. In 2021, the count stood at 5.44 crore, which has now surged to 16.96 crore. 

Prashant Bhansali, the Director of Mehta Equities, commented, “It seems feasible to reach up to 20 crore demat accounts in the next 12 months.”

Sensex Witnesses 20% Growth in the Past Year

In the past year, the Sensex has experienced a remarkable 20% growth. Exactly a year ago, on April 28, 2023, the Sensex stood at 61,112 points, whereas today, on April 28, 2024, it has surged to 73,730 points. Experts suggest that this upward trend may continue in the coming days.