Active investors rose 25% on NSE in last one year

With Narendra Modi-led government completing its one year in office, the period which saw country's key stock indices reaching new peaks, the number of active investors has jumped 25 per cent on National Stock Exchange (NSE) - country's largest stock exchange (in trade volumes).

NSE, as on 30 April, 2015, had about 5.2 million active clients for all stockbrokers of the exchange.

The western region, comprising Maharashtra, Goa and Gujarat, has recorded the highest growth of 32 per cent in number of people actively trading in the cash market. Cash market is the segment where people buy and sell shares primarily with a long term vision on listed companies. India has around 25 million registered clients across exchanges.

Dinesh Thakkar, chairman and managing director of Angel Broking, said: "Key market indices appreciated nearly 30 per cent while mid-cap and small cap segment rose about 60 per cent. This has led to churning by investors and also new investors stepped in. It is reflecting in the increase of demat account openings which surged to 8 per cent in the second half of FY15 against 4-5 per cent in earlier years. The new government's policies and expectations of inflation coming down, which may result into a cut in interest rates has brought in confidence among investors in stock markets."

According to a statement from NSE, Maharashtra (because of India's financial capital - Mumbai) has seen the highest increase in retail clients trading at 38 per cent on its platform. While Gujarat witnessed a 50 per cent jump in value term - highest in the country, it said. Collectively, the cash market turnover reached a new high of Rs 18,000 crore a day.

Other traditional major cities like Kolkata and Delhi also are continuing to grow. During the year, CNX Nifty reached above 9,100 mark while BSE's Sensex had surpassed the level of 30,000.

The rise in retail activity in stock market was also fueled by nearly twelve Initial Public Offers (IPOs) in the last one year. Several offers for sale (OFS) from companies like Coal India (CIL), Rural Electrification Corporation (REC) and Steel Authority of India (SAIL) also saw good responses from the retail segment.

The retail interests were also seen growing in the stock associated with the midcap segment. On an average the CNX Midcap, which tracks performance of midcap companies has outperformed the main index - NIFTY, added the statement.