Penetration of Securities Products in India
The penetration of stock market in India is on the cusp of explosion. 32.1 million households have invested in one or more capital market products out of ~337.2 million households in India. The penetration is highest in NCR, where 20% of the households have atleast one investment in securities market. This is followed by Maharashtra where this number is at 17%. Gujarat is surprisingly lower than Maharashtra at 15.4%.
India average is 9.5%, meaning out of 100 households roughly 9.5 households have exposure to stock market.
India average is 9.5%, meaning out of 100 households roughly 9.5 households have exposure to stock market.
Trends in Penetration of Securities Market
TRENDS FOR HIGHER PENETRATIONS
- Top 9 metros has a penetration of 23%
- Post-graduates has a penetration of 27%
- Graduates has a penetration of 19%
- Salaried people has penetration of 23%
- Self-employed has a penetration of 17%
TRENDS FOR LOWER PENETRATIONS
- Rural population has penetration of 6%
- Agriculture and allied activities has penetration of 4%
- Unskilled Workers has penetration of 3%
Overall there are 8.5% of households have a demat account, with Mutual Funds as the most aware stock market product
| Product Category | Penetration (All India) |
|---|---|
| MF / ETF | 6.7% |
| Stocks / Shares | 5.3% |
| F&Os | < 1% |
| REITs / InvITs | < 1% |
| Corporate Bonds | < 1% |
| AIFs | < 1% |
These numbers are based on a Survey conducted by SEBI along with KATAR on a sample size of 91,950 households.
| State / Union Territory | Penetration (%) |
|---|---|
| NCT of Delhi | 20.70% |
| Andaman & Nicobar Islands | 17.10% |
| Maharashtra | 17.00% |
| Puducherry | 16.40% |
| Goa | 15.50% |
| Gujarat | 15.40% |
| Dadra & Nagar Haveli | 15.40% |
| Daman & Diu | 14.50% |
| Chandigarh | 13.10% |
| Karnataka | 11.60% |
| Sikkim | 10.10% |
| West Bengal | 9.90% |
| Tamil Nadu | 9.80% |
| Rajasthan | 9.60% |
| Kerala | 9.50% |
| Jammu & Kashmir | 9.00% |
| Punjab | 8.40% |
| Madhya Pradesh | 8.40% |
| Telangana | 8.40% |
| Bihar | 7.90% |
| Haryana | 7.90% |
| Arunachal Pradesh | 7.90% |
| Jharkhand | 6.90% |
| Assam | 6.50% |
| Odisha | 6.40% |
| Mizoram | 6.30% |
| Chhattisgarh | 6.20% |
| Himachal Pradesh | 6.10% |
| Andhra Pradesh | 6.00% |
| Uttar Pradesh | 5.30% |
| Tripura | 5.30% |
| Uttarakhand | 4.50% |
| Meghalaya | 4.20% |
| Nagaland | 3.40% |
Units: %
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