The 2024 Securities and Exchange Board of India (SEBI) annual report offers a detailed examination of the Indian stock market’s performance, providing crucial insights into trends in financial markets, derivatives, equity trading, and the broader economic environment. The report underscores the growing participation of retail investors, a surge in the number of demat accounts, and substantial capital raised through IPOs. Here’s a breakdown of the key highlights:

1. Financial Overview and Market Performance

The Indian stock market showed remarkable resilience and growth in FY24, driven by both domestic and international investors.

• Market Capitalization: By the end of FY24, the market capitalization of listed companies surged beyond ₹320 trillion, a significant leap compared to the previous year. This reflects strong confidence in the Indian economy, which benefited from robust consumption patterns and a growing digital economy.
• Turnover Growth: The average daily turnover on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) reached new highs. The NSE saw an average daily turnover of approximately ₹75,000 crore, reflecting heightened trading activity and liquidity.

2. Derivatives (F&O) Statistics

The SEBI report highlighted the continued dominance of the F&O (Futures and Options) segment in the Indian stock market:

• Total Volume: The F&O segment reported a significant increase in trading volumes, driven by greater participation from retail traders. In FY24, over 90% of the total market turnover came from derivatives, with index options remaining the most popular instrument.
• Retail Participation: There was a noticeable uptick in retail participation in the F&O market. More than 45% of new investors entered the derivatives space, showing a shift from traditional equity investments.

3. Equity Market Report

India’s equity market showed strong performance across various sectors. The benchmark indices, including the BSE Sensex and NSE Nifty 50, hit all-time highs during FY24.

• Top-Performing Sectors: The IT sector continued to be a star performer, with significant growth due to the global demand for digital services. Additionally, sectors such as consumer durables, pharmaceuticals, and financial services outperformed, contributing to overall market growth.
• Number of Demat Accounts: The number of demat accounts surged past 140 million by the end of FY24, marking a significant rise in retail investor participation, driven by improved digital infrastructure and ease of access to market platforms.

4. IPOs and Capital Raised

The Indian capital markets saw a strong recovery in IPO activities in FY24:

• Number of IPOs: The market witnessed more than 50 IPOs, raising over ₹60,000 crore. This marked a substantial increase compared to FY23, which was impacted by global economic uncertainty.
• Capital Raised: The total capital raised through IPOs and follow-on offerings surpassed ₹1.2 trillion. Notable listings came from sectors such as fintech, consumer goods, and renewable energy, reflecting the diversity of growth in the Indian economy.

5. Percentage of Profitable Traders

The SEBI report revealed insightful data on retail investor profitability:

• Profitable Traders: Despite the volatility in the stock market, the percentage of profitable retail traders increased to 37% in FY24, driven by better market understanding and the availability of educational resources for traders. The report also noted a surge in retail traders opting for algorithmic trading platforms to improve their profitability.

Conclusion

The SEBI Annual Report for 2024 paints a picture of a vibrant and growing Indian stock market, with increased retail participation, strong IPO activity, and growing turnover in both equity and derivatives markets. With market capitalization continuing to rise and sectors such as IT and pharmaceuticals performing exceptionally well, India’s stock market is poised for even further growth as more investors enter the fray and digital platforms improve market accessibility.

For investors and market participants, the report provides essential insights into current market dynamics, regulatory changes, and emerging trends that will shape future opportunities.