India Adds One Crore New Investors In Eight Months, Option Trading Spikes In 2023 — In Charts

In a year when the stock markets scaled new highs, India added one crore new investors, with trading in equity options growing the most.

The investor base in the stock market rose from 7 crore to 8 crore in eight months through September, according to a report from the National Stock Exchange.

The country’s market capitalisation crossed $4 trillion and is now ranked fourth in the world, behind only the U.S., China and Japan. The benchmark Nifty 50 surpassed the milestones of 20,000 on Sept. 11 and 21,000 on Dec. 8, 2023.

In derivatives trading, India ranks on top, with a 65% share in the number of currency derivatives contracts and 61% in derivatives across all asset classes, according to the data.

The number of investors who traded at least once in equity derivatives recorded the highest jump of about 31% year-on-year to 83.6 lakh. The count was largely stable in case of cash market, while it fell for those who traded in currency derivatives.

The total number of trades rose 134% in equity options, while equity futures, current futures, and commodity options recorded a decline. Commodity options saw a maximum fall of about 32% over the previous year.

Similarly, the total turnover and the daily average turnover of equity options rose the most in 2023, at 30% and 33%, respectively.