The number of investors entering the stock market is increasing at a rapid pace. There are currently 17 crore demat accounts in the country, which was 13.9 crore by December 2023. In March 2020, this figure was only 4 crores, which means there has been a 4-fold increase in just 4 years. The effect has been that the share of local and foreign investors in the market has now reversed.
Between January and August this year, an investment of Rs.4.67 lakh crore was made. Domestic Institutional Investors (DIIs) have invested a maximum of Rs 3.1 lakh crore in it. While ordinary investors have bought shares worth Rs.1.14 crore. Whereas, foreign institutional investors invested only Rs.42,886 crore. That is, the share of DIIs was 66.38%, retail investors 24.41% and FIIs only 9.21% in the total investment. On this account, domestic investors have invested approximately ten times more than foreign investors. Whereas, just a year ago in 2023, FIIs bought shares worth Rs 9.1 lakh crore, DIIs 1.8 lakh crore and retail investors bought Rs 5.2 thousand crore.
More investment came from mutual funds in the country… It has increased for 36 consecutive months. Which is giving stability to the market. Total AUM (assets under management) under mutual funds to reach Rs 12 lakh crore in 2020. was, which has increased 5 times to 66 lakh crore rupees till August 2024. While the monthly SIP has reached Rs.22 thousand.
This is how the investment picture changed… In 2012, foreign investors invested Rs.1,28,361 lakh. Meanwhile, domestic investors have received Rs 55,800 crore and retail investors have received Rs 24,900 crore. were picked up. Whereas, in 2024, foreign investors invested Rs.42,886 crore. 3.1 lakh crore were invested by domestic investors.
Big potential, only 13% of the country's people are in the market, 55% in America
- Vijay Nair, head of research at Geojit Financial Services, said that currently only 5% of the country's money is in the market, which is very low compared to developed countries. 13% of our population is connected to the market, compared to 55% in America and 33% in Britain.
- The investment picture in the country has also changed at a rapid pace. The dominance of big states like Maharashtra and Gujarat is waning. Investors from states like UP, Bihar, Rajasthan, Madhya Pradesh, Tamil Nadu, Karnataka with large population are running on this development path. The next wave of investors in the market is predicted to come from small towns and villages like Tier 3 rather than traditional centres. Like Bihar, Chhattisgarh, Jammu-Kashmir, Himachal and Meghalaya etc. new demat accounts have increased by 40% in one year.
Where will the market reach? Sharemarket shape increased 45 times in 21 years, 15% return Investor interest in Indian stocks has reached a new high in FY 2024. The number of companies with a market cap of more than 1 lakh crore has increased from 48 to 80. The market valuation of BSE listed companies has increased 45 times from 10 lakh crore in 2003 to 450 lakh crore ($5 trillion) by August 2024. BSE index has returned 15% in long term. This trend will continue in the future as well. Another big trend is that more money is coming into the market through IPOs. It has made wealth generation possible. It is estimated that the market cap of BSE listed companies may reach $45 trillion (Rs. 4,050 lakh crore) by 2047.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
