It is said, when it comes to money matters, no one can beat Gujaratis. This is evident from the stock market indices of financial year 2023, where Gujaratis’ strong risk appetite and penchant for stock investments have earned them a bright spot at the bourse.
With a strong investor base, the state has established itself as a key contributor to the overall trading volume on the NSE exchange.
Since the Covid pandemic, the number of active equity investors in the state has doubled to 31 lakh in FY’23, according to data provided by the National Stock Exchange (NSE). In FY’20, the state had 15 lakh active investors.
In fact, investors in the state have outpaced those from across India when it comes to regular trading. Against 36 per cent investors trading at least once in a year across India, Gujarat has 45 per cent such investors in FY’23.
Better awareness, higher returns, increasing tendency to save money and ease of access through digital platforms are among the key reasons driving investors from Gujarat to remain active in their equity trading.
Despite a major crash since Covid-19 pandemic, markets have rebounded well with indices touching new record highs frequently. Lured by higher returns and increasing awareness, more young investors began opening demat accounts and trading. This trend particularly shaped since March 2020.
Financial market experts say a number of retail investors have begun understanding market and trading, thanks to ease of access through mobile apps and websites, which has also fuelled the rise in the number of active investors.
NSE data reveals that of the 7.25 crore registered PAN accounts, 36 per cent i.e. 2.62 crore traded on the stock market in FY’23. The ratio is higher in Gujarat.
Here, 31 lakh registered PAN accounts comprising 45 per cent of the total registered 69 lakh PAN accounts traded at least once in the last financial year.
A consistent rise in the number of active traders only indicates the vibrant and dynamic financial ecosystem of Gujarat and growing financial literacy.