Market Volatility Causes Decline in New Investor Registrations
Equity markets faced significant volatility in February, which was reflected in a sharp drop in new investor registrations. According to the latest report from the National Stock Exchange (NSE), new investor registrations fell by 31.2% in February compared to the previous month. The decline came as a result of a variety of factors, including concerns over tariffs, an earnings slowdown, and stretched market valuations. As market uncertainty continued, it led to reduced investor enthusiasm and cautiousness, affecting overall investor sentiment.
31.2% decline in new investor registrations in February.
Tariff-related concerns, earnings slowdown, and valuation issues contributed to the market selloff.
Volatility in the equity markets led to a significant dip in investor registrations.
Regional Trends: West India Hits Hardest by Decline
The report from the NSE showed that West India experienced the sharpest decline in new investor additions, with registrations dropping by more than 41% compared to January. While all regions saw a drop, Northern India maintained its dominance in terms of new investor registrations, contributing to 40.5% of the total new registrations in February. Southern India and Eastern India were not spared either, with new registrations in these regions falling by 26.8% and 24.7%, respectively. These figures highlight the broad impact of market uncertainty across the country.
West India experienced the sharpest decline, falling over 41%.
Northern India accounted for 40.5% of new investor registrations.
South and East India regions also saw drops in registrations of 26.8% and 24.7%, respectively.
Uttar Pradesh: The Fastest Growing Region Despite Decline
Despite the overall downturn in new registrations, Uttar Pradesh continued to be a major contributor to the increase in investor numbers. Uttar Pradesh remained the state with the highest number of new investor registrations, although the growth slowed down with a 27% drop in registrations in February. The state saw 1.6 lakh new investors in February, down from 2.2 lakh in January. Following Uttar Pradesh, Maharashtra recorded the second-highest number of registrations, with 1.3 lakh new investors joining the exchange in February. The trend shows that while the state saw a decrease in new registrations, it remains a significant player in the country’s investor base.
Uttar Pradesh recorded the highest number of new investors despite a 27% decline in February.
Maharashtra followed closely with 1.3 lakh new investor registrations.
Maharashtra and Uttar Pradesh continue to dominate investor additions in India.
State-wise Breakdown of Investor Registrations
The NSE report also provides a detailed breakdown of investor registrations across various states. West Bengal saw the addition of 79,300 new investors, followed closely by Tamil Nadu with 78,300 new investors. Other prominent states in terms of new investor additions included Bihar (67,200), Gujarat (65,100), Karnataka (63,400), Rajasthan (57,400), and Madhya Pradesh (53,300). These numbers reflect the growing interest in the stock market across multiple regions, despite the overall decline in February.
West Bengal and Tamil Nadu followed Uttar Pradesh with 79,300 and 78,300 new investors, respectively.
Bihar, Gujarat, and Karnataka added over 60,000 investors each.
A broad regional spread shows increasing interest in the stock market across India.
Maharashtra Holds Dominant Position in Investor Base
Maharashtra continues to be the leading state in terms of the total registered investor base on the NSE. As of February, the state accounted for 16.3% of the total investor base on the exchange. Following Maharashtra, Uttar Pradesh contributed 11.3%, and Gujarat came in third with 8.8%. Other states, including West Bengal (5.8%), Rajasthan (5.7%), and Karnataka (5.5%), also contributed significantly to the overall investor base. This dominance of Maharashtra is a reflection of its economic prominence and the growing investment culture in the state.
Maharashtra accounted for 16.3% of the total investor base.
Uttar Pradesh and Gujarat ranked second and third, respectively, with 11.3% and 8.8% of the total registrations.
Other key states, including West Bengal and Rajasthan, contributed notable shares as well.
Young Investors Fueling Growth in Market Participation
A noteworthy trend in the latest data is the increasing participation of younger investors in the Indian stock market. As of February, investors under the age of 30 accounted for 39.6% of the total investor base on the NSE. This is a significant rise from the 22.6% share held in March 2019. Additionally, the mean age of investors has dropped from 41.3 years in March 2019 to 35.8 years in February 2025, and the median age has decreased from 38 to 32 years. This demographic shift indicates a growing interest among millennials and Gen Z in equity investments, signaling a future boom in market participation.
39.6% of the investor base is now under the age of 30.
The mean age of investors has dropped to 35.8 years, and the median age is now 32 years.
Younger generations are playing a significant role in the market’s future growth.
Rise in Female Investor Participation
The participation of women in India’s equity markets has also shown a significant uptick. As per the NSE’s report, 24.3% of new individual investor registrations in February were from women, a notable increase from previous years. Among the top 10 states by investor base, states like Maharashtra, Gujarat, and Tamil Nadu recorded higher female participation, with percentages ranging from 27.3% to 28.2%. In contrast, Rajasthan, Madhya Pradesh, and Uttar Pradesh reported lower female investor participation, with 18.5%, 21.7%, and 20.2%, respectively.
Women’s share of investor registrations increased to 24.3% in February.
States like Maharashtra, Gujarat, and Tamil Nadu saw higher female participation, ranging from 27.3% to 28.2%.
Uttar Pradesh, Rajasthan, and Madhya Pradesh had lower female participation at 18.5%, 20.2%, and 21.7% respectively.
