Gujarat's investor base nearly tripled over a 10-year period, drawn in by the promise of spectacular returns and encouraged by rising awareness of savings and investing.
The National Stock Exchange (NSE) reported that the total number of equity investors from Gujarat was 69,00,000 in the fiscal year 2023, an increase of 2. 8% from the fiscal year 2013. The number of investors increased sharply since the Covid pandemic, as 60% of these investors were registered after April 2020. Experts attribute the rising number of investors to greater awareness, lower bank interest rates and improved financial literacy, besides better gains.
Gunjan Choksi, director of a stock broking firm, said, “Decline in interest rates for bank deposits was one of the key reasons that diverted investors towards equity markets. Moreover, financial literacy increased over the years and there is a greater inclination of the younger generation towards equity investments. This led to more demat accounts getting opened out of Gujarat. Investors must invest with a long-term focus. ”
“The investment into equities from Gujarat has increased sharply over the past decade. Ten years ago, Gujarat accounted for 7% (£156.8 mn) in the daily average turnover of Indian investors. This has grown to 13% at £1.39 billion during the fiscal year 2023,” said a top official of NSE. He added, “Gujarat based investors’ investment growth rate has now surpassed the national average.”