Spurt in demat additions in May after 3 months of decline

Spurt in demat additions in May after 3 months of decline

The total number of demat accounts rose to 118 million, with 2.1 incremental additions in the month of May. The number of incremental additions rose after three consecutive months of decline, according to a report by Motilal Oswal Financial Services. April had seen an addition of 1.6 million accounts.

The benchmark Nifty 50 rose 2.1% in May.

Zerodha reported a 1.1% MoM decline in its client count to 6.2 million, with a 30 basis points decline in market share to 19.9%. Angel One reported a 1.2% MoM increase in its client count to 4.3 million, with about 10 basis points rise in market share to 13.8%. Upstox reported a 4.5% MoM decline in its client count to 2.1 million, with a about 30 bps dip in market share to 6.8%. Groww reported a 1.7% MoM increase in its client count to 5.4 million, with a 20 bps rise in market share to 17.4%.

“The market has seen a surge in the past few weeks and is nearing its all-time high, which is why we have seen a surge in demat additions. That said, the number of active clients has reduced over the past year because several clients that came in after the outbreak of the pandemic have stopped trading, because of paucity of time and rangebound markets since October 2021,” said Tejas Khoday, CEO, FYERS.

Among traditional brokers, ICICI Securities reported a 4.8% MoM decline in its client count to 2.1 million, with a 40 bps decline in market share to 6.8%. IIFL Securities reported a 1.5% MoM decline in its client count to 0.5 million, with a marginal decline in market share to 1.5%.

The top three brokers — Zerodha, Groww and Angel One — have a 50% market share.

Overall ADTO volume inched up 4% MoM to Rs 253 trillion, fueled by continued traction in F&O and a strong recovery in cash ADTO. Retail cash ADTO jumped 15% MoM to Rs 254 billion, whereas retail F&O ADTO was flat MoM at Rs 91 trillion in May. Angel One, which relies heavily on income from F&O, recorded an increase of 2.6% MoM in its daily orders.