The growth of demat accounts in 2024 has shown a slowdown in the last three months due to volatility in the stock markets. In the October-December period, the number of new demat accounts opened was 26.3% lower compared to the previous quarter. This slowdown in growth reflects a cautious outlook among retail investors, as global economic conditions remain uncertain and domestic markets face volatility.
The dip in growth coincides with significant declines in both the Sensex and Nifty indices, as well as a decrease in turnover in the equity derivatives segment. Regulatory curbs also played a role in the decline, with total turnover falling to a 13-month low in December.
Despite the slowdown in new demat account openings, the overall trend of dematerialising accounts remains positive, with a total of 46 million new accounts added in 2024. However, it will be interesting to see how the market dynamics evolve in the coming months and whether retail investors will regain their confidence in the stock market.
Stay tuned for more updates on the latest developments in the financial markets and the demat account landscape.
