New demat accounts surged past 30 lakh in October, marking a 10-month peak. This represents a 22 percent jump from September’s 24.6 lakh figures. Data from depositories highlights a significant uptick in investor participation.
Analysts point to a rebound in equity markets as a key driver. The return of foreign fund inflows and a flood of IPOs have heightened interest. These factors combined to push total demat accounts to a record 21 crore.
October’s primary market was exceptionally active. There were 10 mainboard IPOs aiming to raise over Rs44,930 crore. This marks the largest monthly fundraising target in India’s capital-market history.
Robust market conditions across broader indices fueled the surge. Equity benchmarks Sensex and Nifty rose by about 3 percent. The BSE Midcap and Smallcap indices gained 4 percent and 3 percent, respectively.
Foreign institutional investors turned buyers after months of selling. They invested around $1.6 billion in domestic equities. This reversal played a crucial role in boosting market sentiment.
The domestic stock market may enter a sideways phase. Equity indices show mild selling pressure at higher levels on weekly charts. Investors are watching for consolidation signals.
Attention is now on India’s CPI and WPI inflation figures. These data points are expected this week. They will shed light on inflation trends and future policy directions.
Goldman Sachs has turned bullish on Indian equities. The global investment bank upgraded its rating to “Overweight.” It set a Nifty target of 29,000 by end-2026.
This implies a potential 14 percent upside from current levels. The optimistic outlook reinforces positive investor sentiment. It aligns with the surge in new demat accounts.
Market conditions have clearly attracted a wave of new participants. The combination of IPOs and foreign inflows created a perfect storm. October’s data reflects growing confidence in equities.
Investors are responding to favorable indicators. The record number of IPOs provided fresh opportunities. Strong index performances added to the appeal.
The influx of new demat accounts signals robust market health. It underscores a renewed interest in stock investments. This trend may continue if conditions remain supportive.
Overall, October was a standout month for India’s financial markets. The convergence of multiple positive factors drove the increase. New investors are joining the fray in significant numbers.
The future looks promising with Goldman Sachs’ upgrade. Their Nifty target suggests sustained growth potential. This could further fuel the rise in demat accounts.