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Frontpage Insights: Indian stock market dominated by under-30s, participation of age-appropriate investors declines: NSE

  • The participation of young investors in the stock market increased to over 40 percent

The Indian stock market is now increasingly dominated by young investors under the age of 30. According to the data, the number of young investors in the stock market of the country has increased at a rapid pace. The share of investors under the age of 30 increased significantly from March 2018 to August 2024. During March, 2018, the share of youth investors was only 22.9%.

However, their share has increased significantly to 40% by August 2024, indicating the increasing participation of young investors in the sharemarket. According to NSE, while the participation of young investors is increasing, on the other hand, the participation of other age groups in the stock market is showing a stagnant or declining trend.

The market share of investors in the age group 30-39 and 40-49 has remained almost constant from March 2018 to August 2024, with no significant change observed. On the contrary, there has been a decline in the participation of the elderly in the stock market.

According to the data, the share market presence of people aged 50-59 years and 60 years and above is decreasing. In particular, the share of investors in the over 60 age group has declined from 12.7% in March 2018 to just 7.2% during August 2024. This change in the age group of sharemarket participation has also affected the profile of registered investors.

Indian companies saw strong growth in the first six months of FY 2025, i.e. April to September, with 38% infrastructure-related sectors rating upgraded due to strong sponsors and lower-than-estimated debt. Strong balance sheets in FY2025. Factors such as the possibility of a fall in interest rates and expansion in volatility are likely to increase private sector capital expenditure by 10-12%.

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The average age of investors decreased to 32 years from 38 years in 2018 According to NSE data, the average age of investors, which was 38 years in March 2018, has come down to 32 years by March 2024. Similarly, the average age of investors has also declined, from 41.2 years in March 2018 to 35.8 years by August 2024. This trend shows that enthusiasm for investing in the stock market is increasing among the youth while the age-appropriate people are reducing their participation.

Gift Nifty recorded a record turnover of $100.7 billion in the month of September GIFT Nifty, the new benchmark of Indian stock market growth, has hit a new milestone of $100.7 billion turnover on 30 September 2024, setting a new record for highest monthly turnover ever. The turnover on Gift Nifty has been increasing rapidly since it started trading on NSE IX on 3 July 2023. So far Gift Nifty has executed 27.11 million trades worth 1.18 trillion dollars.

Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).

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