Investors' Interest Tumbles In Feb, New Registrations Fall 31 Per Cent

The sharpest drop in new registrations was recorded in the western region, which saw a decline of over 41 per cent in February as compared to the previous month.

Uttar Pradesh registered the highest number of new investors on the NSE in February, with 1.6 lakh additions.

Source : Wikipedia

Equity markets experienced an extended selloff in February, influenced by concerns over tariffs, slowing corporate earnings, and valuation uncertainties. According to the latest report from the National Stock Exchange (NSE), this market volatility contributed to a 31.2 per cent decline in new investor registrations compared to January.

The downturn affected all states, though Uttar Pradesh continued to lead in new investor additions despite the overall slowdown, reported Moneycontrol.

The sharpest drop in new registrations was recorded in the western region, which saw a decline of over 41 per cent in February as compared to the previous month.

Despite the overall slump, Northern India maintained its dominance, accounting for 40.5 per cent of total new investor registrations in February. Meanwhile, East India and South India experienced declines of 24.7 per cent and 26.8 per cent, respectively.

Uttar Pradesh Retains Top Spot Despite Decline

Uttar Pradesh registered the highest number of new investors on the NSE in February, with 1.6 lakh additions. However, this marked a significant drop from the 2.2 lakh registrations recorded in January, reflecting a nearly 27 per cent decline. Maharashtra followed with 1.3 lakh new investors, while West Bengal (79,300), Tamil Nadu (78,300), Bihar (67,200), Gujarat (65,100), Karnataka (63,400), Rajasthan (57,400), Madhya Pradesh (53,300), Andhra Pradesh (49,100), Telangana (40,900), and Delhi (40,000) also contributed to the investor pool.

Maharashtra continued to dominate in terms of total registered investors, holding a 16.3 per cent share of the NSE investor base. Uttar Pradesh accounted for 11.3 per cent, followed by Gujarat (8.8 per cent), West Bengal (5.8 per cent), Rajasthan (5.7 per cent), and Karnataka (5.5 per cent).

"Region-wise, North India remained on top with a registered investor base of 4.1 crore, followed by West India at 3.4 crore, South India at 2.3 crore, and East India at 1.3 crore," the NSE report highlighted. Uttar Pradesh alone contributed 14.5 per cent of all new registrations in February.

Rise in Young and Female Investors

The NSE report also indicated a shift in investor demographics, with younger individuals increasingly participating in the market. Investors under 30 years of age made up 39.6 per cent of the total investor base in February, up from 22.6 per cent in March 2019. The average investor age has decreased significantly, from 41.3 years in March 2019 to 35.8 years in February 2025, while the median age dropped from 38 to 32 years over the same period.

Female investor participation also witnessed a notable rise, reaching 24.3 per cent in February. "Among the top 10 states by investor base, Maharashtra (28.2 per cent), Gujarat (27.8 per cent), Tamil Nadu (27.8 per cent), and Karnataka (27.3 per cent) exhibit higher female representation than the pan-India average of 24.3 per cent in FY25TD. In contrast, Rajasthan (20.2 per cent), Madhya Pradesh (21.7 per cent), and Uttar Pradesh (18.5 per cent) show lower female investor participation. Notably, Lakshadweep had the lowest female representation of 15.2 per cent, while Goa had the highest at 32.4 per cent in FY25 so far," the report stated.