The investment style of Indians is changing. Earlier, investors used to invest their money in safe investment options like bank fixed deposits and gold property. Now this trend is changing rapidly. Especially people in North India now prefer the stock market over traditional investment options like real estate and gold. Due to this influence, the number of investors in the stock market in North India has increased fourfold in the past four years.
Which state has the most stock market investors?
Interestingly, Uttar Pradesh is at the forefront in this regard along with Rajasthan and Delhi. Data shows that the total number of stock market investors in North India was 8.84 million in 2019-2020. Its number has increased fourfold to 3.57 crore as of July this year. If this number is compared with other parts of the country, then North India is far behind.
Now, the number of investors from the western part of the country has increased by 182% from 1.08 billion in 2019-20 to 3.05 billion. The number of investors in southern India has increased by 172% from 7.5 million to 1.89 billion, and the number of investors in the eastern Indian stock market has increased by 296% to 1.19 billion. In other words, the number of investors in North India has not only seen the largest increase in the past four years, but has now moved from the second place in 2019-20 to the first place.
Stocks take precedence over gold and silver
Traditionally, most people investing in the stock market came from the western part of the country, namely Maharashtra and Gujarat, which has now slipped to the second position.
This growth trend has grown in the same manner in the first four months of 2024-25 as well, with data showing that North India added 3.33 million investors between April and July this year. West India added 19.6 million investors and South India added 14.9 million investors.
The major states in eastern India with investors include the northeastern states, West Bengal and Odisha. The number of retail investors across the country has increased fourfold since 2021, with most of them coming from harder-to-access markets such as UP.
Why prefer the stock market?
The main reasons for the sharp increase in the number of investors are the increase in people’s income, the increase in stock market awareness and the improvement of network facilities. According to experts, a large number of people will invest in the stock market in the coming period.
Uttar Pradesh has played the biggest role in increasing the number of stock market investors, with 2.3 million investors in 2019-20, accounting for 7.4% of the total registered investors. Now, their shareholding has increased to 11.1%, with 1.1 billion investors. Maharashtra, with 1.67 billion investors, has seen its share fall from 19.2% in 2020 to 16.8% currently.
Gujarat’s share has fallen to 8.8 per cent with 8.7 million investors, while UP has not only rapidly increased its share but is now also fast moving towards the first position.
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