Which state in India has the highest number of stock market investors?

India's stock market has witnessed a surge in participation in recent years, with more and more individuals venturing into the exciting world of equities. But which state leads the pack in terms of the sheer number of active investors? Let us look at the state with maximum investors and how other states look on the table.

Stock market investors in India

Stock market investing in India has seen significant growth and evolution over the past few decades. With an increasing number of participants, the Indian stock market has become an attractive destination for both domestic and international investors. Demat accounts surged from 36 million in March 2020 to 160 million in June 2024.

Non-institutional investors now account for more than half of the cash volumes in FY24, marking a notable increase from 38% and 49% in FY14 and FY19, respectively. India's weight in the MSCI Index has also surged to 19% from 7% in FY14 and 9% in FY19.

Statewise list of stock market investors in India

According to data from the Bombay Stock Exchange (BSE), Maharashtra emerges as the champion, boasting the highest number of registered stock market investors in India.

As you can see in the table below, western India has been a stronghold for equity market investments. Maharashtra's neighbor, Gujarat, follows closely behind at third position with over 1.68 crore active investors. Uttar Pradesh, the country's most populous state, comes in at a second position with around 1.97 crore investors.

Factors Fueling the Growth

Several factors are contributing to this nationwide rise in stock market participation:

• Increased Awareness and Education: Financial literacy initiatives and readily available online resources are empowering individuals to understand the stock market and make informed investment decisions.
• Technological Advancements: Easy-to-use mobile trading platforms and online brokerage accounts have made investing more accessible and convenient than ever before.
• Demonetization & Digital Push: The Indian government's demonetization initiative and emphasis on digital transactions are likely nudging people towards exploring alternative investment avenues like the stock market.

Before you go

With Maharashtra and Uttar Pradesh leading the charge and a pan-India upsurge in investor participation, the Indian stock market is poised for continued growth. As financial literacy and access to technology improve further, we can expect even more individuals to join the exciting world of equities and shape the future of the Indian investment landscape.