New Delhi, August 12(HS): India’s equity participation boom hit a milestone in July as the total number of Demat accounts in the country crossed the 200 million mark for the first time, signalling the deepening penetration of stock market investing among retail investors.

According to depository data, 2.98 million new Demat accounts were opened in July, taking the total to 202.1 million. The month-on-month jump is striking — June saw just 252,000 new accounts being added — underscoring how quickly investor enthusiasm has accelerated despite volatile trading conditions.

Demat accounts, which allow investors to hold and trade securities electronically, are widely regarded as a reliable gauge of investor participation. Analysts note that this surge reflects a strong retail appetite for equities, particularly in the primary market, even as the secondary market is viewed by many small investors as overvalued.

IPO Mania Shifts Spotlight to Primary Market

Market experts attribute much of July’s spike to a flurry of high-profile Initial Public Offerings (IPOs), many of which were launched at valuations perceived as reasonable compared to listed market peers.

Ravi Chander Khurana, CEO of Khurana Securities & Financial Services, explained:

“July saw an unusual level of activity in the primary market. A large number of new investors opened Demat accounts specifically to participate in IPOs. With many issues coming at attractive valuations, the primary market is pulling in small investors who might otherwise stay away from the secondary market right now.”

The rush to open accounts, Khurana added, reflects strategic investor behaviour — entering the stock market through fresh issues rather than trading existing scrips, to capture potential listing gains and long-term value.

Confidence Amid Volatility

What makes the July leap more remarkable is that it came during a month of choppy trading in the broader market, with intermittent selling pressure in benchmark indices. That retail investors entered in such large numbers despite the uncertainty speaks to the increasing financial literacy, digital access, and risk appetite in India’s investment ecosystem.

With IPO pipelines remaining active and retail participation climbing steadily, industry observers forecast that India’s capital markets are entering a sustained phase of broad-based investor expansion — one that could strengthen market depth, liquidity, and resilience over the coming years.

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Hindusthan Samachar / Jun Sarkar