Demat accounts hit 10-month high in October: Thinking of opening one? Here’s what you should know

Renewed optimism in India’s capital markets has pushed demat account openings to a 10-month high, signalling a revival in retail participation after months of subdued activity. Over 30 lakh new demat accounts were opened in October - a 22 per cent rise from 24.6 lakh in September - according to official data from the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). With this surge, the total number of demat accounts in the country has touched a record 21 crore.

IPO wave drives renewed retail activity

The sharp rise in new accounts comes amid a flood of public offerings and a rebound in equity markets. October turned out to be the busiest month ever for India’s mainboard IPOs, with 10 companies together seeking to raise more than Rs 44,930 crore - the highest monthly fundraising target in the country’s market history.

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The rush was led by Tata Capital, which raised Rs 15,512 crore, and LG Electronics India, which mobilised Rs 11,607 crore. Together, they accounted for more than half the total capital raised during the month.

Market rebound, foreign inflows support momentum

The broader equity market reflected this renewed confidence. Benchmark indices Sensex and Nifty gained nearly 3 per cent in October, while the BSE MidCap and SmallCap indices advanced 4 per cent and 3 per cent respectively.

The firm said the outlook is supported by improving liquidity conditions, the Reserve Bank of India’s monetary easing measures, and fiscal stability. It also pointed to structural reforms, including adjustments in Goods and Services Tax (GST) rates and gradual deregulation in the banking sector, as factors likely to support growth.

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Inflation data and policy cues in focus

Market watchers believe the near-term direction will depend on domestic inflation figures. India’s consumer price index (CPI) and wholesale price index (WPI) data due this week are expected to offer key insights into inflation trends and possible future policy moves.

For now, the stock market is expected to remain in a consolidating phase, with mild selling pressure at higher levels, as investors await fresh macroeconomic cues.