The number of new investors entering Indian stock markets declined sharply in August, with registrations falling 18.3% month-on-month (MoM), according to the latest data released by the National Stock Exchange (NSE).
Only 12.3 lakh new investors registered with the exchange during the month, marking the third-lowest monthly addition in the current financial year. Despite the moderation, NSE’s overall registered investor base rose to 11.9 crore by the end of August 2025, edging closer to the 12-crore milestone, NSE Market Pulse report for September said.
The slowdown in new registrations comes against the backdrop of broader macroeconomic headwinds. The NSE report highlighted that tariff-related shocks, along with sustained foreign capital outflows amid heightened global uncertainties, have weighed on investor sentiment in recent months.
Downtrend in Investor Additions
Since the start of calendar year 2025, the pace of investor additions has largely been on a downward trajectory, except during the May–July period. The August data further extended this weakening trend, underscoring the cautious mood among retail investors.
Between February and August 2025, average monthly additions stood at 11.9 lakh, significantly lower than the 19.2 lakh recorded during the same period last year.
Nonetheless, the long-term expansion of the investor base remains noteworthy. The NSE report pointed out that after crossing the 9-crore mark in February 2024, the registered investor base grew to 10 crore by August 2024 and reached 11 crore by January 2025 — with each incremental crore being added within just five to six months.
In contrast, momentum has tapered since February 2025, reflecting the near-term challenges. However, the structural growth story remains intact, with the investor base continuing to expand at a faster pace compared to earlier years.
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