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Trading activity has witnessed a decline in stock markets in the past few months. This is reflected in the falling number of active players on the National Stock Exchange (NSE), data collected by equity broker Motilal Oswal showed.
As per the data, active users on NSE fell to 3.6 crore in November from 3.67 crore in October. Motilal said it was the fifth straight month of decline in the number of active users.
The key reason behind the fall, was lower in activity in the small and mid-cap stocks for the past 5-6 months, analysts say.
“Active user clients in the industry as a whole rose 20 per cent year on year but declined by 1 per cent month on month. This was the fifth consecutive month of a decline and the intensity of the fall was maintained at 0.68 million accounts in November. At present, the top five discount brokers account for 59.1 per cent of overall NSE active clients, up from 58.9 per cent in October,” Motilal said.
Turnover flat
This decline in trading activity saw no major growth in average daily trading volumes (ADTV), which remained flat with just 2 per cent month on month increase to the tune of ₹146-lakh crore.
Average daily retail volumes too remained flat at ₹60-lakh crore. This was primarily on account of lower implied volatility (IVs) across derivatives contracts.
Data further showed that even the growth in demat accounts remained sluggish on a month on month basis at 18 lakh in November. Although demat bank CDSL retained its market share of 72 per cent, the NSDL saw the number of incremental demat accounts improve to 21 per cent in November from 17 per cent in October.
Zerodha dominates
Among the top five discount brokers, Zerodha reported 0.5 per cent decline in client count to 66 lakh but its market share rose by 24 basis points to 18.3 per cent in November, Motilal said.
Angel One reported 0.4 per cent month month gain in client count to 42 lakh and a 26 basis points jump in its market share to 11.8 per cent. Upstox reported a 5.9 per cent month on month decline in its client accounts to 42 lakh, with a 50 basis points drop in market share to 11.6 per cent.
Groww reported a 1.7 per cent m-o-m increase in its client base to 51 lakh with a 48-bps rise in market share to 14.1 per cent.
Among traditional brokers, ICICI Securities reported 3.8 per cent m-o-m decline in its client count to 28 lakh with 16bp drop in market share to 7.8 percent. IIFL Securities reported 13.4 per cent m-o-mdecline in its client count to 0.8 million with a 29bp contraction in market share to 2.2 per cent, Motilal Oswal report said
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