Capital Market Tracker - F&O ADTO Recovers; NSE Active Client Additions Weak In December: Motilal Oswal

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Motilal Oswal Report

Capital market sentiment of India Inc. was negative in December 2022 with Nifty declining 3.5% month-on-month. This was compounded by heightened volatility with India VIX rising to 14.8 in Dec-22 from 13.8 in Nov-22.

This translated into a strong traction in volumes on the bourses with overall average daily turnover jumping 30% month-on-month to Rs 190 trillion. Overall retail ADTO was at Rs 75 trillion, up 25% month-on-month.

Client addition activity, however, was sluggish with incremental demat accounts at 2.1 million in Dec-22 versus an average of 2.9 million in FY22.

Conversely, active users on NSE saw a further drop to 35.3 million from 36.0 million in Nov-22 – the sixth consecutive month of a decline.

Angel One Ltd., which has a higher dependence on future and options income, saw its daily orders decline 22% month-on-month. With weakness in cash volumes continuing, it will be pertinent to watch ICICI Securities Ltd.’s scale up in the F&O segment.

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