Household Wealth In Capital Mkt Surges Over Rs 40 Trn In 5 Yrs

New Delhi: Healthy corporate earnings, stable macro fundamentals and online digital investment platforms have encouraged greater investors’ participation in the capital markets with the number of unique investors rising to 11 crore, the Economic Survey said on Friday.

This increased investors’ participation, coupled with robust gains generated by equities has created significant household wealth over the last few years. As per the NSE’s estimates, household wealth in Indian equities has increased by over Rs40 lakh crore in the last five years (2020-2024; as of September 2024). Overall, the participation of investors in the capital market has increased through direct (trading in markets through their accounts) and indirect (through mutual funds) channels. The unique investor base at the National Stock Exchange (NSE) surpassed the 10-crore mark in August 2024, tripling in the last four years, and currently stands at 10.9 crore (as of December 26, 2024). The number of client codes, indicating a number of investor accounts at NSE, has risen from a little under six crore at the end of 2019 to nearly 21 crore as of December 2024.

“Healthy corporate earnings, stable macro fundamentals, efficient and robust technology architecture facilitating efficient trading, clearing, and depository systems, and trust garnered by the mutual fund ecosystem and online digital investment platforms have encouraged greater participation in capital markets,” the survey for 2024-25 tabled in the Parliament said. The incremental addition to demat accounts has been continuously increasing, with the number of demat accounts rising sharply by 33 per cent to 18.5 crore at the end of December 2024 on a year-on-year basis.

In the equity cash segment, individual investors turnover 41 was 35.6 per cent from April to December 2024. There are 11.5 crore unique investors with demat accounts and 5.6 crore unique investors in mutual funds at the end of December 2024.