Investors: Record Number of New Demat Account added during Lockdown

Record number of retail investors added during lockdown. And, Sectorial Talks on discount brokers.
It looks like people are staying home and passing their time by trading in the stock market! ‘Baithe baithe kya karein, karna hai kuch kaam, ban jao retail investor le ke prabhu ka naam,’ probably that’s what people are doing. We say this because as per the reports, record number of people have opened their accounts with the trading platforms. The numbers released are astonishing.

Close to 12 lakh accounts were opened with Central Depository Services (CDSL) in the months of March and April. Besides this, National Stock Exchange internet trading volumes saw a drastic rise of 53% during the lockdown period. We usually listen to how apprehensive India is when it comes to stock market investing, but looks like the lockdown has transformed this as well (like many other things such as air pollution levels).

Why did This Happen?

According to CEO of Zerodha Nithin Kamath, “The prime reasons for such an interest in the equity market are attractive valuations, free time due to the lockdown and ease of transactions due to the work from home routine.” By the way, Kamath also told that Zerodha added 3 lakh new customers in the last two months and 65% of them are first time users.

We believe that good quality stocks were available at quite attractive valuations which attracted the potential investors. February mid till March 23 saw a big time crash of the stock market. Since then, it has also recovered by around 30%. Meanwhile, people got a new pastime during the lockdown and the market saw record number of retail investors added.

Sectorial Talks – Discount Brokers in India

Zerodha started the trend of discount brokerage in India and many other followed suit. If we talk about the largest discount brokers in India based on the number of clients, Zerodha is at the top of the list with a clear first mover advantage. Next in this list are 5 Paisa and Upstox. Out of these, 5 Paisa is listed. It has also reported a 32% growth in revenue in the recent quarter. To know more about the financial aspects of the company Click Here