In a sign that interest in the stock markets remains high, the total number of demat accounts in the country hit 234.4 million in July, reports Kishor Kadam. The addition of 2.89 million accounts during the month was the highest in six months, according to data sourced from CDSL and NSDL. Experts said the recovery in stock prices and the strong line-up of primary market issuances have prompted individuals to set up demat accounts.
Stocks, across the board, have rebounded from their March-end lows. At 24.583, the Nifty 50 is now up 10% from its March 30 lows while the Sensex, which currently trades at 78,542, too has gained a little over 9%. With the secondary markets doing well, despite several global headwinds, there has been much action in the primary market.
Experts highlighted the stupendous success of the government’s stake sale in Life Insurance Corporation (LIC) via an Offer for Sale which mopped up close to Rs 32,000 crore. The retail portion was subscribed 69%, according to stock exchange data. SBI Funds Management also had a successful IPO for Rs 9,813 crore with the issue fully subscribed within the bidding period. Among the larger IPOs expected in the coming months are those of the National Stock Exchange (NSE) and Jio Platforms. In all, nearly 180 companies are ready with regulatory approvals to hit the markets to raise an estimated Rs 3 lakh crore. Another 71 companies have filed their IPO documents with the regulator and are awaiting approval. These companies are estimated to raise around Rs 1.84 lakh crore, according to Prime Database.