The indian stock market has witnessed a record surge in the number of investors, with over 3 crore new investors entering the market in the last two years. Remarkably, 1 crore new investors joined in the past five months alone. The total number of unique investors registered on the National Stock Exchange (NSE) has grown significantly in recent years, reaching 9 crores from approximately 6 crores two years ago.
This trend indicates a continuous rise in the participation of retail investors in the domestic stock market. The momentum of investor growth has been noteworthy. It took around 9 months for the number of investors on NSE to increase from 6 crores to 7 crores. Subsequently, the next 1 crore new investors joined in just 8 months. Following that, the number of investors increased from 7 crores to 8 crores in the next 8 months. Finally, it took only 5 months for the number of investors to jump from 8 crores to 9 crores.
Several factors contribute to the increasing number of investors, including rapid digitalization, growing investor awareness, financial inclusion initiatives, and the stock market's impressive performance. The stock market itself has been setting new records consistently, with both the BSE Sensex and NSE Nifty reaching new all-time highs. The Nifty 50 has surged by around 30% in the current year, while the Nifty 500 index has seen an increase of about 40%.
