Report: Every fifth household in the country connected to the stock market

New Delhi| The total market capitalization of Indian companies has increased six times in the last decade. One in five families in India is now connected to the stock markets. NSE has said this in one of its reports.

The number of accounts linked to stock market investments has crossed 21 crore, with more than 18 crore demat accounts, NSE reported. According to NSE data, two crore investors joined the stock market in a little more than five months. NSE has said in its report that in the year 2024 alone, 2.32 crore new investors were added, which is the highest figure ever in a single year.

The report also highlights the income of Indian families by investing in the stock market. Indian households’ wealth in equities has increased by more than Rs 40 lakh crore in the last five years and by more than Rs 28 lakh crore in the last three years, the report said. In 2024 alone, domestic investors amassed assets worth Rs 13.2 lakh crore. According to NSE, this asset estimate is based on annual changes in individual holdings in listed companies through both stock investments and mutual funds.

According to NSE, Indian investors continue to show confidence in the stock markets despite market fluctuations. As of September 2024, individual investors directly and indirectly hold 17.6 per cent of the Indian stock market, the NSE said. There has been a significant jump in this figure compared to previous years. This is almost equal to the share of foreign portfolio investors (FPIs). FPI holdings were 7.1 per cent higher than individual holdings in FY21.

The report further said that FPIs are withdrawing funds, but strong domestic inflows have kept the market stable. Indian households’ equity participation is expected to further increase as more investors grow in the market and their earnings continue, NSE said in its report.