Getting more love from UP, not Gujarat-Maharashtra! This is how the stock market is breaking records

stock market

Now the power of Rajma rice and Chole Bhature is being seen more than Vada Pav and Dhokla in the stock market of the country. Yes, here we are comparing Maharashtra and Gujarat with Delhi and Uttar Pradesh. Whose presence in the stock market has increased more than 4 times in the last 4 years. The special thing is that people from North India like Delhi and UP have been identified as traditional investors. People here are seen investing more in property and gold. But in the last 4 years, investors here have changed their investment planning and turned to the stock market.

If we look at the figures, during Covid there was an increase in the number of investors in the stock market. Now when the stock market valuation had dropped significantly. In the era of low valuations, a multitude of investors, especially young investors, were seen on the stock market. Since then, investors from the northern and eastern regions have shown a greater inclination towards the stock market. Let us try to understand from the data which state has seen an increase in the number of investors over the past 4 years.

Increase in the number of investors from North to South?

1. The number of northern investors in the National Stock Exchange (NSE) has quadrupled since fiscal 2020, reaching 35.7 million as of July 31, data show.
2. The East, led by the Northeast, Odisha and West Bengal, has also nearly quadrupled its investor base, adding 8.9 million in four years.

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3. On the other hand, the West, which includes the financial capital Mumbai and Gujarat, has seen a nearly three-fold increase in the investor base to about 30 million.
4. If we talk about South India, from FY2020 till now, there has been a 172 percent increase. Currently, there is an investment base of about 20 crore rupees in South India.

Main reasons for the increase in investors

Now, rising per capita income across all areas of the country, better internet connectivity and use of Aadhaar card have helped in making access to the capital market much easier, which was once limited to metro cities. Dinesh Pai, Vice President, Business Analytics and Investments, Zerodha, said in a press report that we believe data packages becoming cheaper, more and more people having access to it and knowledge about the capital market through various channels are the driving factors for demat accounts. This could be the reason for the rising numbers.

The number of investors in the country’s main states is increasing

These are also the reasons

Between April 1 and July 31 this year, North India added 33.3 lakh investors, while West India and South India added 19.6 lakh and 14.9 lakh investors respectively. A Groww spokesperson told the media that since 2021, we have seen a nearly 4x increase in the number of retail investors across the country. Most of this growth has come from under-accessed markets like Uttar Pradesh, which has a large population but previously lacked access to capital markets. Rising financial literacy and better public digital infrastructure like UPI and eKYC, based on Aadhaar, have made access to capital markets much easier. Thus, the financialization of savings has increased.

How much did UP’s share increase?

Uttar Pradesh, which had 2.3 million investors and 7.4 per cent of the total registered investors in FY20, has seen its share rise to 11.1 per cent with 11 million investors. Meanwhile, Maharashtra and Gujarat have seen a decline in the total share of the investment base. Maharashtra’s share with 16.7 million investors has now declined to 16.8 per cent from 19.2 per cent in FY20, while Gujarat’s share with 8.7 million investors has declined to 8.8 per cent from 12.2 per cent in FY20.