09:44
Monthly demat account additions in June rose by 2.6 million, the highest month-on-month increase since February, taking the total number of accounts to 231.5 million, according to data from depositories.
The net additions in April and May stood at 2.2 million and 2.3 million, respectively. On the contrary, net additions in February stood at 2.8 million.
Industry players noted that the uptick follows a rebound in the initial public offering (IPO) market in June, with seven mainboard issues compared to two in April and none in May as geopolitical concerns continued to spook investors.
"Between May and June, geopolitical uncertainty dimmed, leading to revived optimism in investors, complimented by favourable macroeconomic results," said Prakarsh Gagdani, founder and chief executive, Soaring Peaks Capital.
While the IPOs announced in June were of small scale, Gagdani added the big trigger for net additions may follow after the dates of bigger issues such as Jio Platforms and the National Stock Exchange are announced.
"The rebound of smallcap indices over the last two months and the IPO revival in June drew 600,000 to 800,000 new investors on a weekly basis in June," said G Chockalingam, founder and chief executive, Equinomics Research.
-- Shilpa Rangarajan, Business Standard
