India’s stock markets are witnessing an unprecedented retail participation boom, with total demat accounts across NSDL and CDSL crossing 21 crore for the first time in October 2025. The surge is driven by a blockbuster IPO season, robust market performance, and a new wave of first-time investors joining the equity ecosystem.
October alone saw over 30 lakh new accounts, a 22% jump from September — the highest addition in 10 months. The rush coincides with a strong month for the markets, with Sensex and Nifty up 3%, and mid-cap and small-cap indices also gaining sharply.
A record 33 IPOs raised ₹39,140 crore during the month. Big-ticket listings like Tata Capital (₹15,511 crore), LG Electronics (₹11,600 crore), WeWork India, and Canara HSBC Life Insurance attracted heavy retail demand, further accelerating demat openings.
Experts note a behavioural shift where retail investors increasingly prefer direct stock exposure, especially IPOs, over traditional SIP-led investing. Digital onboarding through fintech apps has made account opening quick and accessible, though multiple accounts per investor may be inflating overall numbers.
Despite the surge in registrations, active client numbers dipped by 57,000 among top brokers, signalling that while interest is at an all-time high, sustained investor engagement remains a challenge.
The growing influx of millennials and Gen Z investors marks a new phase in India’s financial market participation — energetic and opportunity-driven, yet in need of stronger financial literacy to navigate market risks.
