New Delhi[India], June 17 : Uttar Pradesh has achieved a significant milestone by becoming the second state in India to surpass one crore investors in the stock market. As of May 2024, the state accounts for approximately 11 per cent of the total 9.32 crore investors in the Indian stock market, according to a report by the National Stock Exchange (NSE).
This marks a substantial increase from 2010 when Uttar Pradesh had only 7.01 lakh investors. The state's investor base has grown exponentially over the years, now crossing the one crore mark. Uttar Pradesh joins Maharashtra as the only two states with an investor base exceeding one crore.
Earlier the data from the National Stock Exchange (NSE) revealed that states like Bihar, Uttar Pradesh, and Madhya Pradesh have outnumbered the states like Gujarat and Maharashtra in adding new investors.
Traditionally the NSE was dominated by investors from Gujarat, Maharashtra but the recent statistics from the NSE indicate a remarkable shift. The NSE data revealed that since October last year, more than 42 per cent of new investors are hailing from Bihar, Uttar Pradesh, Madhya Pradesh, and other North Indian states.
The latest report further highlighted that the total number of investors in India has reached 9.3 crore. These investors have a direct ownership stake in the equity markets amounting to Rs 36.4 lakh crore. Their confidence in the market is also reflected in the robust monthly SIP (Systematic Investment Plan) inflows, which have also exceeded Rs 20,000 crore.
The NSE report also highlighted that the increasing number of companies with substantial investor bases. Over the past decade, the number of companies with more than two lakh investors has risen from 59 to 178. Similarly, those with over five lakh investors have increased from 12 to 72, while companies with over ten lakh investors have grown from five to 39. The number of companies with more than 25 lakh investors has also seen a notable rise, from two to 16.
The Indian stock market has been consistently outperforming global markets, particularly those in developed countries. The report attributes this success to strong economic fundamentals, robust corporate earnings, and consistent involvement from domestic institutional investors.
The National Stock Exchange launched approximately 30 years ago, has seen remarkable growth. When it was inaugurated on Diwali in 1994, the market capitalization was Rs 3.6 lakh crore but this figure has surged to Rs 431.34 lakh crore as of June 14. This represents an increase of around 115 times, with a compound annual growth rate (CAGR) of approximately 18 per cent.
Notably, Bihar, Uttar Pradesh and Madhya Pradesh have witnessed exponential growth in their investor base since fiscal year 2020. According to the NSE data, in North India Bihar, Uttar Pradesh, and Madhya Pradesh are the leading states to add new investors to the NSE.
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