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Overall ADTO remains buoyant; NSE active clients increase for sixth consecutive month

Retail ADTO jumped 20% MoM in Dec’23; MoM demat additions surged The Nifty50 ended the calendar year 2023 above 21,700, with 8% MoM gains in Dec’23. Overall ADTO volume was buoyant at INR401t (up 18% MoM), with F&O ADTO increasing 18% MoM and Cash ADTO surging 43% MoM. Overall retail ADTO jumped 20% MoM to INR153t, with retail F&O ADTO up 20% MoM and retail cash ADTO up 47% MoM (INR477b). Demat account additions surged to 4.2m in Dec’23 vs. average monthly additions of 2.1m in FY23. Further, the number of active users on NSE increased for the sixth consecutive month to 36.2m in Dec’23 from 34.9m in Nov’23. ANGELONE, which relies heavily on income from the F&O segment, witnessed a surge in the number of daily orders placed.

Demat additions surged MoM to 4.2m

* The total number of demat accounts increased to 139m in Dec’23. New account additions surged to 4.2m in Dec’23 vs. average monthly additions of 2.1m in FY23.

* In Dec’23, CDSL continued to gain market share MoM in terms of the total number of demat accounts and on an incremental demat basis. On a YoY basis, NSDL lost 320bp/1,100bp market share in total/incremental demat accounts.

NSE active clients increase for the sixth consecutive month

* The number of active clients at NSE increased 3.6% MoM to 36.2m in Dec’23. Currently, the top five discount brokers account for 62.1% of total NSE active clients vs. 61.6% in Nov’23.

* Performance of key discount brokers:

* Zerodha reported a marginal MoM increase in its client count to 6.7m, with market share declining by 30bp to 18.6%.

* ANGELONE reported a 4.7% MoM increase in its client count to 5.3m, with a ~20bp increase in market share to 14.8%.

* Upstox reported a 2.5% MoM increase in its client count to 2.3m, with a marginal decline in market share to 6.3%.

* Groww reported a 7.2% MoM increase in its client count to 7.6m, with a rise in market share to 21%.

* Performance of key traditional brokers:

* ISEC reported a 0.4% MoM decline in its client count to 1.9m, with a decline in market share to 5.2%.

* IIFL Sec reported a 0.5% MoM increase in its client count to 0.4m, with a decline in market share to 1.1%

Overall ADTO up 18% MoM

* Total ADTO surged 111% YoY (up 18% MoM) to INR401t, with F&O ADTO increasing 18% MoM. Cash ADTO jumped 43% MoM.

* Overall Retail ADTO rose 20% MoM to INR153t as retail F&O ADTO increased 20% MoM and retail cash ADTO increased 47% MoM in Dec’23.

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