In October, new demat accounts opened surpassed 3 million, reaching a 10-month peak and reflecting a 22 percent increase from 2.46 million in September, according to depository data. Analysts link this surge to a recovery in equity markets, renewed foreign fund inflows, and a wave of initial public offerings (IPOs) that have increased investor engagement. The total number of demat accounts has climbed to a record 210 million, up from 207 million the prior month. October witnessed a historic number of mainboard IPOs in India, with 10 offerings projected to raise over ₹44,930 crore, marking the highest monthly fundraising target in the history of the country’s capital markets. The increase is also attributed to strong market conditions across major indices.
The equity benchmarks, Sensex and Nifty, saw gains of approximately 3 percent in October, while the BSE Midcap and Smallcap indices rose by 4 percent and 3 percent, respectively. After several months of net selling, foreign institutional investors shifted to buying, injecting about $1.6 billion into domestic equities. The domestic stock market is anticipated to remain in a sideways to consolidating phase, with mild selling pressure evident at higher levels on the weekly chart. Investors will also be looking at India’s CPI and WPI inflation data this week, which are expected to provide insights into inflation trends and forthcoming policy directions.
Goldman Sachs has expressed optimism for India, upgrading its rating on Indian equities to ‘Overweight’ and setting a Nifty target of 29,000 by the end of 2026, suggesting a potential upside of 14 percent from current levels.