The silent change: Which states are reshaping the Indian stock market after Maharashtra and Gujarat?

Stock market boom (Image source: iStockphoto)

A new report from the National Stock Exchange (NSE) highlights a change in India’s situation. sotck exchangewith states such as Uttar PradeshRajasthan and West Bengal become active participants in India’s growth through the stock markets. These states now rank among the top five in terms of investor activity, after Maharashtra And Gujaratthe traditional financial powers of India.

Maharashtra remains the leading state with a registered stock market of 1.7 crore investorsrepresenting 16.8% of the country’s total investor base. Uttar Pradesh saw a remarkable rise, securing the second spot with 1.1 crore investors as of August 2024, or 11.1% of the total. Gujarat ranks third with 88.5 lakh investors (8.7%), followed by West Bengal with 59 lakh (5.8%) and Rajasthan close behind with 57.8 lakh (5.7%) .

The NSE report said that these five states now account for almost half (48%) of all stock market investors in India, demonstrating their growing importance in the country’s financial environment.

According to the NSE report, there is a significant trend: North and East India have seen the highest growth in new investor registrations over the past year. This suggests a broadening of participation in stock markets beyond traditional centers of investment.

The report also mentions that regions outside the top 10 states now account for 27% of the total investor base, up from 23% in FY20. In August 2024, India reached a major milestone as the number total registered investors has surpassed 10 million investors, marking growing interest in stock markets across the country.