Eastern India eyeing Dalal Street for financial freedom

More and more Indians are embarking on the financial freedom journey via Dalal Street. This is visible from the fact that the total number of new registrations maintained a positive trajectory on average over the last two fiscal years. Monthly registrations jumped five times from 2,02,000 in April 2019 to 11,87,000 in March 2021 with a compound growth rate of 8% on a MoM (month on month) basis. In total, 38,00,000 investors were registered in FY20 which has increased to 90,00,000 in FY21 with ~122% growth over the year.

As per data available with NSE, the distributional pattern across regions has somewhat changed over the last two fiscal years. In March 2021, northern states contributed around 33% of total registration which is around 2.2 percentage point lower than March 2020 (35.3%). A similar trend was observed for the Western region as well. The share of total registration in the western region fell from 36.4% in March 2020 to 32.8% in March 2021. South India has however maintained similar distribution and registered around 21% over both periods. In contrast, East India’s share has increased from merely 7.7% in March 2020 to 13.2% in March 2021.

Top 10 Districts 

The total distribution of new registration is further concentrated in few districts, as shown in the following chart. Over the month of March, the top ten districts have contributed a total of 25% of total registration. Among them, around 6.1% of all new investors are from the Mumbai region, which is marginally higher than Delhi (6.0%). Among others, 2.2% of all registrations over the month happened in Pune, followed by Ahmedabad and Bangalore (1.8% each). Unlike previous months, two districts from the state of Assam Barpeta and Dhubri have seen a sudden rise in new registration and contributed around 1.7% and 1.3% of total registration over the month. Besides, a significant number of investors are registered in Surat, Jaipur, and Hyderabad over the last month.