The rapid increase in the number of demat accounts is a sign of growing confidence in the economy.
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The speed at which new demat accounts are being opened in the stock market is clearly the result of people’s confidence. People’s confidence in the economy of any country can be seen through the financial investment of the common people. The country’s stock market is continuously witnessing a boom in the sense that lakhs of new demat accounts are being opened every month of the current calendar year. If we talk about this calendar year, more than two crore new demat accounts have been opened since January. In the month of September alone, about 30 lakh 60 thousand new demat accounts have come into existence, whereas in August this year’s highest number of 31 lakh new accounts have been opened. Similarly, in the last month, 10 IPOs have come in the market and investors have invested generously in these. Through these 14 IPOs, companies have raised Rs 11868 crore. If seen, the maximum number of IPOs have come in the market after December 2010. Overall, from January to September this year, companies have raised Rs 26913 crore from investors through 34 IPOs. All IPOs are oversubscribed. All this is happening when today the countries of the world are going through an economic crisis. But it becomes clear that the continuous opening of new accounts in the stock market and good support for IPOs is an indication that people do not have any negative thoughts about the country’s economy. Rather, it would be appropriate to say that people’s confidence in the country’s economy and the economic conditions of the country remains intact.
In fact, the kind of situation that happened after Corona and the economic activities of the country and the world were affected, there were many apprehensions among the people about the economy and there is no doubt that most of the countries of the world went through a period of economic crisis and are still going through it. . Apart from this, the situation has worsened due to the long running Russia-Ukraine war. Now a new crisis has emerged due to the latest attacks by Israel and Hamas. Due to this, the situation is not going well in most of the countries of the world. The countries of the world are troubled by China’s policies. Apart from this, terrorist incidents and incidents like storms, earthquakes etc. occurring every day due to climate change are creating an atmosphere of fear in the countries of the world. No rainfall, excessive rainfall, harsh weather etc. cannot be considered good under any circumstances.
Amidst all these circumstances, people’s attitude towards the country’s economy has to be understood from two perspectives. On the other hand, there is a decline in the sentiment of savings in banks. There was a time when savings were given special importance in our tradition, today the situation is exactly the opposite. In comparison to savings, the number of people taking loans from financial institutions is continuously increasing. On the other hand, the stock market, which has always been considered unstable and is considered to be the most risky investment not only in the national but also in the international market, the middle class of the country, especially the young generation, has come forward to invest in the risky stock market without any hesitation. Has been. However, attractive returns in the stock market are believed to be the reason behind this, while on the other hand, high instability in other sectors is also a big reason for coming here. However, there should be no doubt that the stock market is the riskiest. But the way new demat accounts are being opened every month and the way the IPO is getting response, it becomes clear that today’s generation is choosing the risky path despite facing millions of risks. From this, it can be assumed that investors, especially the middle class, are having full confidence in the stock market.
However, the stock market is also affected by international conditions. Besides this, there is every minute risk involved, yet people expressing confidence in it may not become a cause of crisis in the future. Institutions like SEBI, NSDL etc. will have to keep a close watch on this. Because the middle class affects the economy of any country the most and if the middle class itself is in danger, then it will not take long for the situation to worsen. In such a situation, the institutions that keep an eye on the market will have to make their monitoring system more effective so that the situation does not go out of hand, therefore, while opening of new demat accounts, increase in the share of countrymen in the stock market and increase in investment are good things, the activities of the companies are also a good thing. And full attention will have to be paid to the forces, institutions and activities influencing the stock market so that the interests of stock market investors can be protected.
-Dr. Rajendra Prasad Sharma
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