How Many People Invest in the Stock Market in India?
Get a clear picture of how many people invest in the Indian stock market, detailing participation, investor profiles, and market access.
The Indian stock market plays an increasingly significant role in the nation’s financial landscape, reflecting its expanding economy and growing financial sophistication. Understanding retail investor participation offers insights into broader economic trends and individual wealth creation efforts. This analysis focuses on investor involvement, their characteristics, and access mechanisms. The increasing engagement of individuals highlights a notable shift in investment preferences across the country.
Current Investor Base and Trends
The Indian stock market has experienced substantial growth in investor participation, evidenced by the rising number of dematerialized (demat) accounts. As of October 2024, the total number of demat accounts in India reached 179 million, increasing to 185 million by the end of 2024. The National Stock Exchange (NSE) reported its unique registered investor base surpassed 100 million (10 crore) on August 8, 2024, closing at 109 million by year-end 2024. This figure represents a significant jump from 27 million unique tax IDs registered on the NSE in FY2019 to 92 million in FY2024, indicating a 240% increase over five years.
While active clients on the NSE stood at 48.9 million in October 2024, the overall growth is remarkable. The total number of demat accounts has quadrupled in the last five years, surging from 39.3 million in 2019 to 185.3 million in 2024. This acceleration is notable as it took 14 years for the NSE’s registered investor base to reach 10 million, but the most recent 10 million additions occurred in just over five months. In 2024 alone, 23 million new investors joined the market, signifying rapid expansion. Estimates suggest 5% to 6% of the Indian population has ventured into the stock market, with some reports indicating about 17% of Indian households, or 50 million, are directly investing.
Demographic Breakdown of Investors
The profile of Indian stock market investors is undergoing a transformation, with a notable shift towards younger and more geographically diverse participants. The median age of NSE investors is 32 years, with 40% under 30 as of August 2024. This represents a decrease from a median age of 38 years just five years prior, reflecting a growing interest among the youth. The share of investors under 30 years old has nearly doubled from 23% before the COVID-19 pandemic to 40% currently.
Female participation in direct equity investing has increased, with women accounting for over one in five investors, their share rising from 22.8% in 2023 to 24.1% in 2024. Geographically, investor participation is expanding beyond major metropolitan areas. While Maharashtra continues to lead with 17.4% of registered investors, states like Uttar Pradesh have shown substantial growth, now accounting for 10.7% of the investor base as of January 2024. Regions outside the top 50 metropolitan districts contributed to 65.2% of new investor additions in 2024, indicating widespread penetration, with investors now present in nearly all of India’s pin codes.
Access Pathways to Investing
The increase in stock market participation in India is closely linked to accessible investment pathways. Digital brokerage platforms have played a substantial role, offering online trading and mobile applications that simplify the investment process. The rise of discount brokers has made investing more affordable and convenient, with over 50% of Indian retail investors utilizing their services. Discount brokers collectively hold 64.5% of the active client base on the National Stock Exchange.
Account opening processes have become streamlined through e-Know Your Customer (eKYC), allowing digital setup without physical documentation or office visits. This ease of access, coupled with widespread smartphone adoption, has removed traditional barriers for many potential investors. Financial literacy initiatives, including government programs, have contributed to greater awareness and understanding of financial tools. These factors have facilitated a rapid increase in demat account openings and market engagement.