Every fifth home in India linked with stock markets; household wealth in equities up by Rs. 40,00,000 crore (US$ 459.24 billion) over five years: National Stock Exchange (NSE)

A report by the National Stock Exchange (NSE) reveals that one-fifth of Indian households are now connected to the stock markets, with the market capitalisation of Indian companies growing sixfold over the past decade. The number of stock market-linked accounts has crossed 21 crore, with over 18 crore demat accounts. In 2024 alone, India saw a record 2.32 crore new investors, the highest ever in a single year. This surge in participation has contributed to substantial wealth creation for Indian households, with equity investments increasing household wealth by over Rs. 40,00,000 crore (US$ 459.24 billion) in the past five years and Rs. 13.2 lakh crore (US$ 151.55 billion) in 2024 alone.

Despite market fluctuations, Indian investors continue to demonstrate strong confidence in the stock markets. As of September 2024, individual investors directly and indirectly own 17.6% of the Indian stock market, nearly equal to the share held by foreign portfolio investors, which had been significantly higher in previous years. The report highlights that while foreign portfolio investors have been withdrawing funds, robust domestic inflows have helped maintain market stability. The participation of Indian households in equities is expected to grow further as more investors join the market and wealth creation continues.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.