In a significant development in the Indian stock brokerage industry, Groww surpassed Zerodha in September to become the broker with the most active National Stock Exchange (NSE) clients. The data was revealed amidst the backdrop of market volatility, with the Nifty-50 index jumping by 800 points in the first half of the month, despite concluding with no growth.
The market volatility led to an increase in Average Daily Turnover (ADTO) volume. According to Motilal Oswal Financial Services, total ADTO volume rose by 9% month-on-month to ₹335 trillion ($1 = ₹83.26). This rise was supported by an 11% growth in retail futures and options (F&O) ADTO and a 9% increase in retail cash ADTO, contributing to an overall retail ADTO of ₹120 trillion.
Angel One, another brokerage firm, also saw a substantial rise in daily orders largely due to its focus on the food and beverage sector. Despite a challenging market environment, Angel One managed to significantly increase its daily order volume.
The number of active NSE users and demat accounts continued their upward trajectory for the third consecutive month, reaching 33.4 million and 130 million respectively. In September alone, 3.1 million new demat accounts were added to the system.
Zerodha, despite losing its top spot to Groww in terms of active NSE clients, maintained its market share and witnessed an increase in its client base. The company's co-founder, Nikhil Kamath, also launched the "WTF Fund" for young entrepreneurs under 22 years old.
While ICICI Securities reported a drop in client count and Upstox saw a decrease in market share, both Groww and Angel One experienced an increase in their respective market shares. However, IIFL Securities reported a decline in market share. In the midst of these changes, Central Depository Services Limited (CDSL) managed to gain market share at the expense of National Securities Depository Limited (NSDL).
The top five discount brokers now represent 61.9% of all active NSE clients, indicating a significant shift towards cost-effective trading solutions.
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