In a startling fact revealed by Zerodha’s Nithin Kamath, investors on Kite hold as much as Rs 4.5 lakh crore worth of assets in their demat accounts.
“It’s unreal how much our markets have expanded post-Covid. Zerodha customers now hold Rs 4.5 lakh crore worth of assets in their demat accounts,” Kamath said in a tweet.
Indian equities had significantly outperformed global peers as the pandemic eased given the robust liquidity in the market. Even amid concerns around valuations in the broader market, domestic markets have been touching fresh highs in the recent past.
After reaching the Rs 300 lakh crore mark in July last year, the combined market cap of all listed stocks touched Rs 400 lakh crore earlier this week and the last Rs 100 lakh crore came in just nine months.
The rally has been much sharper in smaller stocks with hundreds of small and midcap stocks giving multibagger returns.India’s market cap crossed the Rs 50 lakh crore mark in 2007, the Rs 100 lakh crore milestone in 2014, and the Rs 200 lakh crore mark in February 2021. In an unprecedented bull run, the m-cap doubled in just over two years.Equity markets have witnessed enhanced participation from retail investors, with demat accounts surging to 151 million in March 2024 from 36 million in March 2019. Cumulative domestic equity inflows have amounted to $92.7 billion over the last five years.
Backed by strong retail interest, Zerodha has also seen phenomenal growth in the past few years even though the business has plateaued in terms of revenue and profitability in FY23.
In the previous fiscal year, Zerodha clocked an overall revenue of around Rs 6,875 crore and a profit after tax of Rs 2,900 crore.
Going forward, analysts expect the buoyant momentum to continue with major triggers like central bank rate actions, the outcome of the Lok Sabha elections, US presidential election dictating the direction.
