The National Stock Exchange (NSE) has reported that out of its 10 crore registered investors, at least 2.2 crore are women. This data, revealed by Tirthankar Patnaik, the chief economist at the NSE, indicates that approximately 22% of the total investors on the NSE are female. This is a remarkable increase since 2015, when the number of female investors in the Indian stock market has surged by 6.8 times.
The rise in female investors is not the only demographic shift in the Indian stock market. Patnaik also noted that about 69% of investors are below the age of 40 years, indicating a growing interest in investing among the younger generation. This trend is a testament to the increasing financial literacy and the streamlined Know Your Customer (KYC) process that has made it easier for individuals to participate in the stock market.
The strength of retail investors has been a significant factor in the resilience of the Indian stock market. Despite heavy selling by foreign institutional investors (FIIs) and geopolitical stress, the Nifty has been registering consistent growth. This resilience can be attributed to the fact that Indian households now have a share of 35% in total trading.
Furthermore, the monthly Systematic Investment Plan (SIP) inflow has crossed the Rs 23,000-crore level, a significant milestone for the markets. The NSE's growth has been rapid and consistent. The total number of client codes (accounts) registered with the exchange stands at 19 crore. This growth has been facilitated by rapid digitisation, rising investor awareness, financial inclusion, and sustained market performance.
The registered investor base hit the one crore mark 14 years after the commencement of operations and has seen more than a three-time jump in the last five years. The growth of the NSE is not limited to the number of investors. The exchange has also seen a significant increase in the diversity of its investor base. Of the latest 10 million additions, 42% are from North India, followed by those in the western areas at 25%.
Investor participation has increased across various financial instruments such as Exchange Traded Funds (ETFs), Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and bonds. The states of Uttar Pradesh and Maharashtra have been leading in new investor registrations, accounting for more than a quarter of these investors.
This growth has been accompanied by a robust financial performance by the NSE. The exchange reported a 39% jump in consolidated net profit at Rs 2,567 crore in the first quarter of FY25, with net margins for the three-month period coming in at 52%. The growth of the NSE and the increasing participation of retail investors, particularly women, is a positive sign for the Indian economy.
It indicates a growing financial literacy and an increasing trust in the stock market as a viable investment avenue. However, it is essential to continue the efforts towards financial inclusion and investor education to ensure that this growth is sustainable and inclusive.
