Despite the slowdown, the country’s total registered DEMAT accounts reached 190 million in February, according to an analysis by Motilal Oswal Financial Services. Central Deposit Services Limited (CDSL) accounts for 151.24 million DEMAT accounts, while National Securities Possority Ltd (NSDL) has 39.16 million accounts.
The peak of Demat account increase was recorded at 4.5 million in July 2024, but the trend began to reverse in October, with the increase falling to 3.5 million as the market began to correct.
BSE gains market share in F&O transactions
In the capital market, the Mumbai Stock Exchange (BSE) is steadily increasing its market share in the futures and options (F&O) sector. Motilal Oswal noted that the exchange held a 36% share of nominal turnover in February 2025, maintaining its January data, while its options premium turnover grew to 19% from 18% last month.
However, in the cash market segment, the National Stock Exchange (NSE) continues its dominance, holding 95% of the market share in February 2025.
Stock market turnover sees a decline
Total average daily turnover (ADTO) of the stock market fell 4% in the month of February to Rs 289 trillion, which was due to a 4% decline in restaurant trading (Rs 28.8 trillion) and a 5% decline in cash trading volume (Rs 1 trillion). In addition, the option premium ADTO fell 9% to Rs 594 billion.
Corporate bond market expands amid equity fluctuations
Meanwhile, as of December 31, 2024, India’s bond market was US$2.69 trillion, with US$60.2 billion in corporate bond sector accounting for US$60.2 billion, according to data from the Indian Clearing Corporation and the Securities and Exchange Commission of India (SEBI).
“As India moves towards a $7-8 trillion economy over the next five years, a large part of capital formation will be led by the expanding bond market, especially corporate bonds,” said Vishal Goenka, co-founder of Indiabonds.com.
In the first nine months of fiscal 2024-25, despite a depreciation of 2.7%, it added $100 billion in India’s outstanding bond market. In terms of rupee, the overall bond market grew by 6.5%, while corporate bonds grew at a faster rate of 9%.
Unlike the developed market where the bond market is 1.2 to 2 times the size of the stock market, India’s bond market is only 0.65 times the market value of the stock market.
“As the stock market volatility increases, portfolio diversification through bonds has gained appeal, which is reflected in the increased investor interest this quarter,” Goenka added.
