Broking stocks soar; Angel founder on factors driving retail frenzy

In an interview with CNBC-TV18, Dinesh Thakkar, chairman & managing director (CMD) of Angel Broking and Mithun Aswath, managing partner of Kivah Advisors spoke at length about the trend in demat accounts.

Is there a correlation between the bump up and the stock market running to new highs? According to Thakkar, yes.

"We are seeing that people from tier-II and tier-III and beyond, who never had any access to the market, have got an opportunity to not only access the market but information and rules that app (mobile application) brings in. Therefore, multiple things have helped the sector to grow,” he said.

There is the pandemic angle to it as well.

“COVID lockdown forced everyone to explore opportunities to invest and currently equity is the best asset class compared to other asset classes. So with this trend, the millennials come to the market and remain in the market for a longer time. This has helped the industry to grow and get the recognition that was needed,” he said.

Technology penetration and awareness is a key factor too. The recent IPO rush has only supplemented this.

“The COVID situation and awareness in terms of digital has helped increase penetration of a number of broking accounts especially companies like Angel Broking and new fintech (financial technology) companies are pushing new age investors and millennial play a large part of incremental addition to demat accounts as well as the broking accounts,” said Aswath.

For the entire discussion, watch the video