NSE active users fall 16.3% YoY; discount brokers left with fewer clients

The total number of active user clients at the National Stock Exchange (NSE) declined sequentially for the tenth consecutive month by 16.3% year-on-year (YoY) to 3.12 crore in April—a 4.6% month-on-month (MoM) decline from 3.27 crore the previous month, as per a report by domestic broker Motilal Oswal. 

While the total number of demat accounts increased to 11.6 crore in April, only 16 lakh new accounts were added—a decline of 18% MoM from 19 lahk in March.

“This figure is significantly lower than the average new accounts added per month in FY23 (average of 21 lakh),” the report noted. 

The incremental addition to demat accounts has been on a declining trend since January. While the month saw the addition of 22 lakh demat accounts, the figure fell to 21 lakh in February, and further dropped to 19 lakh in March, and now 16 lakh in April. 

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Discount brokers client count fall, market share up 

As per the analysis, the top five discount brokers currently account for 60.1% of the overall NSE active clients, a marginal increase from 60.0% in March. 

While Zerodha reported a 1.6% MoM decline in its client count to 63 lakh, it reported a 0.62% rise in market share to 20.2%.

Angel One also observed a 0.3% drop in its client count to 43 lakh, however, its market share rose 0.58% to 14%. Also, Groww's client count was down 0.5% MoM to 53 lakh, while market share was up 0.70% to 17.1 %. Meanwhile, Upstox was down 23% to 22 lakh in terms of clients and also recorded a 1.71% dip in market share to 7%.

Among traditional brokers, ICICI Securities reported a 4% MoM decline in its client count to 22 lakh and IIFL reported a 3.5% decline to 5 lakh. Their market share increased by 0.04% and 0.02% to 7.2% and 1.5%, respectively.

Overall, the capital market sentiment of India Inc was positive in April, with the Nifty rising 4% MoM. The average daily turnover surged 131% YoY and 3% MoM to Rs 2.43 lakh crore, aided by continued traction in Futures and Options (F&O) and recovery in cash average daily turnover (ADTO), excluding retail.