Mumbai:- The speed of opening new demat account is slowing down. According to the January data of the depository, the pace of joining new accounts has come down to a 14 -month low compared to the previous months.
2.83 million new demat accounts were opened in January – which is the lowest since November 2023. While 3.26 million accounts were opened in December. This figure is less than 3.84 million monthly average of 2024. By the end of January, the total number of demat accounts registered with NSDL and CDSL was 188.14 million, which was 185.3 million last month.
The credit for the earlier rise in opening a demat account is the rise in the stock market after Kovid, in which new investors opened demat accounts. During the long -term boom in Indian equity, many people made share trading their primary business.
From Kovid to last October, new investors earned a lot of profit between benchmarks and a boom in broad indices. However, the market is going through a period of reform since October. Especially in broad areas, which have no clear indication of improvement yet. Since October, Sensex and Nifty have fallen by about 8 per cent, while BSE Midcap and BSE Smallcap indices recorded a huge decline of 12.8 per cent and 12.2 per cent respectively.
Why decrease in demat account
The recession is due to weak corporate income, recession in economic development, tight liquidity status, delay in government spending and inflation. All these have ended the trust of investors. Global factors like geopolitical stress and tariff war have weakened the spirit. From Kovid to last October, new investors earned a lot of profit between benchmarks and a boom in broad indices. However, the market is going through a period of reform since October. Because of this, investors are side by investing.
The growing instability in the market has also played a role in it, in which stop-loss has been started due to frequent bounce or investors have been forced to get out of their position in deficit, causing the emotion to weaken.
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