Demat accounts reach 179 million even as new additions decline to 3.5 million in October

Motilal Oswal Financial Services (MOSL) reported that the total number of demat accounts in India reached 179 million as of October 2024. However, new account additions experienced a dip, with 3.5 million accounts added in October 2024 compared to the average monthly additions of 3.9 million year-to-date for FY25.

In this period, CDSL maintained its lead in market share growth both in the total number of demat accounts and incremental accounts, while NSDL saw its market share decline by 400 basis points (bp) year-on-year (YoY) in total accounts and 210bp in incremental accounts.

NSE active clients maintain an upward trajectory

The number of active clients on the National Stock Exchange (NSE) continued its upward trend, increasing by 2.1 per cent month-on-month (MoM) to reach 48.9 million in October 2024. The top five discount brokers held 64.5 per cent of the total active NSE client base, an increase from 61.4 per cent in October 2023.

Among key discount brokers, Groww and Angel One reported the fastest growth. Zerodha's client count rose by 1.2 per cent MoM to 8.1 million, although its market share fell by 15bp to 16.5 per cent. Groww's client base expanded by 2.8 per cent MoM to 12.6 million, increasing its market share by 20bp to 25.8 per cent. Angel One reported a 2.4 per cent MoM growth, reaching 7.5 million clients with a steady market share of 15.4 per cent. Upstox registered a 1.4 per cent increase in clients to 2.9 million, but its market share slipped by 5bp to 5.8 per cent.

Traditional brokers, particularly those promoted by banks, maintained steady performance. ICICI Securities reported a 0.7 per cent MoM rise in clients to 1.9 million, with a stable market share of 4 per cent. Kotak Securities experienced a 2.8 per cent MoM increase, bringing its client count to 1.5 million, maintaining a 3 per cent market share. HDFC Securities saw a 3.2 per cent MoM increase, with its client base reaching 1.3 million and a consistent market share of 2.7 per cent.

ADTO declines MoM across F&O and cash segments

In terms of average daily turnover (ADTO), there was a 3.5 per cent MoM decline in October 2024, totalling ₹519.8 trillion. This decline was driven by a 12.4 per cent reduction in the cash segment and a 3.5 per cent fall in the F&O segment. The BSE saw a significant 16 per cent MoM drop in total ADTO, affected by declines in both cash and F&O volumes, while the NSE recorded a 1.2 per cent MoM increase due to a rise in options trading volumes.

BSE's market share in the cash turnover segment decreased to 6.4 per cent in October 2024 from 6.6 per cent in September 2024. The market share for options notional turnover at BSE fell to 23.2 per cent in October from 26.8 per cent in the previous month and 9.4 per cent in October 2023. The options premium turnover market share at BSE also declined to 11.4 per cent in October 2024, down from 13.3 per cent in September 2024.

Commodity volumes rise MoM

Commodity trading volumes showed a mixed trend. The total volume on MCX fell by 14.6 per cent MoM to ₹45.3 trillion in October 2024 after peaking at an all-time high of ₹53.1 trillion in September 2024, mainly due to a 16.8 per cent decline in options futures. Overall ADTO in the commodities segment dropped by 18.5 per cent MoM, with options ADTO declining by 20.6 per cent and futures ADTO by 1.8 per cent.

The reduction in options ADTO was notably influenced by a 48.3 per cent drop in gold, a 19.7 per cent decrease in Crude Oil, and a 10.8 per cent decline in Natural Gas. Conversely, Silver options ADTO saw a significant increase of 59.4 per cent MoM. For futures ADTO, the decline was primarily driven by a 19.5 per cent drop in Gold, a 5.9 per cent decrease in Crude Oil, and a 16.3 per cent fall in Natural Gas, while Silver futures ADTO rose by 19.6 per cent MoM.

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