NSE's active users increase for fifth month in a row
What's the story
The National Stock Exchange (NSE) has witnessed a fifth consecutive month of growth in active users.
Now, the active users have reached 3.49 crore in November, up from 3.39 crore in October.
This increase is due to the ongoing rally in the equity market, as both flagship Sensex and Nifty50 indices have risen around 20% each since April. Broader indices BSE MidCap and BSE SmallCap have surged over 50% and 57%, respectively.
Details
Factors driving the Indian market surge
Several factors have contributed to the Indian markets' growth, including strong GDP numbers, increased foreign investor activity, crucial victories for the Bharatiya Janata Party in three states, and expectations of potential rate cuts by the US Federal Reserve in the upcoming year.
Devarsh Vakil, Deputy Head - Retail Research at HDFC Securities, stated, "Indian macroeconomic fundamentals are amongst the best the country has seen for a while and relatively much better than many of the large economies around the globe."
What Next?
Record high demat accounts amid rally
In November alone, about 27.80 lakh new demat accounts were opened, bringing the total count to a record high of 13.51 crore.
Vakil added, "We have seen large flows from domestic investors and now after the results of the state elections, we are getting foreign institutional investors are also chipping in."
"More money is chasing fewer stocks and that is resulting in higher stock prices across the board, whether blue-chips, midcaps, or small caps," he added.