Demat account additions hit 7-month high in August as IPO boom draws investors
August witnessed a surge in new demat accounts, reaching a seven-month peak due to strong initial public offering activity that spurred many newcomers to the markets. Collectively, NSDL and CDSL welcomed around 3.27 million new accounts, even as benchmark stock indices faced a minor dip. Analysts are optimistic about continued growth, especially with major upcoming IPOs from Jio and NSE on the…
In August, the number of new demat accounts surged to a seven-month high, reflecting a third consecutive month of growth following a prolonged period of stagnation, according to NSDL and CDSL. The combined entities facilitated the addition of nearly 3.27 million demat accounts, marking the highest monthly increase since January 2026.
As of month-end, the total count of demat accounts reached 237.7 million. Notably, this figure does not denote unique investors, as individuals may possess multiple accounts; instead, an estimated 135 million unique investors are accounted for. The surge in demat account additions is primarily attributed to the robust performance of the IPO market.
Sriram Velayudhan, senior VP at IIFL Capital Services, attributes this trend to heightened return expectations stemming from strong small- and midcap IPO debuts. Despite a dip in the benchmark indices, with the Sensex down 1.5% and the Nifty falling 1.2% in August, certain market segments, particularly those with higher retail participation, continued to thrive.
Small and midcap sectors witnessed significant gains, with the BSE MidCap 150 up 1.6%, the BSE SmallCap 250 rising 2.4%, and the BSE Microcap 250 surging 6.2% during the month. The robustness of primary market activity, marked by a record 23 IPOs raising ₹22,448 crore and two OFS transactions raising ₹31,660 crore, was a critical driver behind the uptick in new account additions.
Experts believe that as upcoming IPO launches from Jio and NSE draw closer, the pace of demat account additions is poised to accelerate further.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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