New User Registrations on NSE Drop 18% in August

The pace of new investor sign-ups on the National Stock Exchange (NSE) stumbled in August, putting an end to a four-month run of steady growth. According to the latest NSE Market Pulse report, fresh account openings dropped 18.3% month-on-month, as heightened volatility in the equity market and muted gains weighed on sentiment.

New registrations fell to 12.3 lakh in August, down from 15.1 lakh in July. The decline was even sharper on a year-on-year basis at 37% when compared to the 19.5 lakh registrations in August last year. That said, NSE’s total registered investor base continued to expand, crossing 11.9 crore by the end of the month, pointing that long-term investors continue to hold ground despite short-term volatilities.

Between April and August this year, 99.8 lakh new investors signed up on India’s biggest exchange, a sizeable drawdown when compared with the 1.6 crore additions seen in the same five-month stretch of FY25. Analysts say this reflects a cool down after last year’s frenzy of new retail participation.

Meanwhile, the dip in new user registrations in August was broad-based, spanning most states. The five largest contributors, Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu and West Bengal, accounted for 46% of new accounts but collectively saw a 17.5% fall compared with July.

Uttar Pradesh retained its top spot, adding 1.7 lakh investors, though this was still a 13.4% drop from July and a steep 40.1% fall from a year earlier. Maharashtra followed with 1.4 lakh registrations (down 24.1% on month), while Gujarat added 1.1 lakh (down 18.5%). Tamil Nadu contributed 0.9 lakh, down 17.2%, and West Bengal 0.6 lakh, down 20.7%.

Market experts believe that while the immediate slowdown reflects caution in the face of volatile markets, the steady rise in the overall investor base points to a structural trend of financialisation of savings in India.