UP, Rajasthan, West Bengal investors make up nearly 1/4th of India's stock market participants

As India's stock markets continue to reach record highs, a significant surge in investor participation has been observed from the states of Uttar Pradesh, Rajasthan, and West Bengal, according to the latest report from the National Stock Exchange ( NSE ).

Traditionally dominated by Maharashtra and Gujarat, India’s stock market investor base is witnessing notable growth in these northern and eastern states. Maharashtra still leads the pack, with 1.7 crore investors, accounting for 16.8 per cent of the total investor base. However, Uttar Pradesh has rapidly emerged as the second-largest contributor, surpassing 1 crore investors in April 2024 and reaching 1.1 crore by August, now holding 11.1 per cent of the country's total stock market investors.

Gujarat follows in third place with 88.5 lakh investors, contributing 8.7 per cent of the total. Meanwhile, West Bengal and Rajasthan have also seen significant increases, with 59 lakh (5.8 per cent) and 57.8 lakh (5.7 per cent) investors, respectively. Together, Uttar Pradesh, Rajasthan, and West Bengal now account for almost 25 per cent of all stock market investors in India.

"It is also interesting to note that the top five states of Maharashtra, Uttar Pradesh, Gujarat, Rajasthan, and West Bengal now comprise nearly half (48 per cent) of all investors in the country," stated the NSE report. This data underscores the critical role these states play in shaping India's stock market landscape.

Additionally, the report revealed a notable trend: the North and East India regions are witnessing the highest growth in new investor registrations. Over the past year, these regions have added a substantial number of investors, further broadening India's stock market investor base.

Moreover, states outside the top 10 now account for 27 per cent of the total investor base, up from 23 per cent in FY20, indicating that the stock market is becoming increasingly inclusive, with investor participation expanding beyond the traditionally dominant states.

In August, India's stock markets reached a significant milestone, with the total number of registered investors crossing the 10 crore mark. This achievement reflects the growing interest of the Indian population in the equity markets and signals a broader shift in the nation's financial landscape. The report highlighted that it took just five months for the market to grow from 9 crore to 10 crore investors, an unprecedented pace, driven in part by an influx of younger investors.

The Indian stock market's investor base has accelerated dramatically, contrasting with the 25 years it took to reach the first crore of registered investors.

(With ANI inputs.)