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As Nifty rose, NSE posts 25% annual increase in active investors

Retail investors rush back to NSE; A dozen IPOs also help retail growth in the cash market

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When stock markets have been on the swing, India's premier bourse, National Stock Exchange (NSE) has seen a spurt in participation by retail investors from almost all states in the country over last one year since Narendra Modi-led government took oath in Delhi.

All states barring two have reported hefty increase in equity market activities, with the western part of India comprising Maharastra, Goa and Gujarat, together contributing 32% spurt in number of people actively trading in the last one year, the stock exchange said in a statement.

During the period, the equity market overall has remained bullish. Nifty, which is the benchmark index for the nation, has given more than 25% return to investors since the time the current government started at the centre. The benchmark index even reached a peak level 9119.2 during the period. Overall, at the nationwide level, NSE has seen close to 25% growth in active investors' number.

India has around 2.5 crore registered clients across exchanges.

Preliminary data suggests that Maharastra has recorded the highest increase in retail clients trading on the bourse. The total number of people traded in the last one year has surged by 38% on the NSE platform while Gujarat has witnessed the highest jump of more than 50% in value terms.

Not only in the number of retail investors, in value terms as well, Maharashtra has remained the highest volume contributor in India's equity cash market segment, primarily because India's financial capital of Mumbai. Other traditional markets such as Kolkata and Delhi have also continued to grow.

Cash market is the segment where people buy and sell shares primarily with a long term vision on listed companies.

The growth has helped the cash market turnover to rise to a new high of about Rs 18,000 crore a day. The retail growth in the cash market was also fuelled by the fact that 12 IPOs were launched during the period. Several offer-for-sale from companies such as Coal India, REC and SAIL saw excellent responses from the retail segment.

The retail interests were also seen growing in the stocks associated with the midcap segment. On an average, the CNX Midcap, which tracks performance of midcap companies, has outperformed the main index – Nifty. Among the sectorial indices, CNX Pharma performed the best followed by the Auto Index. However, indices covering sectors like energy, metal and realty are in red.

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