Demat additions slow in April despite sharp market rally, shows data

Despite a sharp rally in domestic equities in April, fewer investors rushed to open their trading accounts than in the previous few months.

About 1.59 million new demat accounts were opened with two depositories -- CDSL and NSDL -- taking the total tally past 116.05 million in April. The demat additions were 23 per cent below the 2022-23 financial year monthly average of 2.07 million.

Market experts said that a combination of direct equity investors reaching a saturation point and less number of initial public offerings or IPOs in the market have contributed to this trend.

"For more demat accounts