Mumbai, Nov 10 (NationPress) The number of new demat accounts established in October has surpassed 30 lakh, achieving the highest level in ten months and reflecting a 22 percent increase from 24.6 lakh in September, as per data released by depositories.

Experts have linked this remarkable growth to a recovery in the equity markets, the resurgence of foreign fund investments, and a surge in initial public offerings (IPOs) that has captured investor attention. The total number of demat accounts has reached an all-time high of 21 crore, up from 20.7 crore the prior month.

October witnessed an unprecedented volume of mainboard IPOs in India's primary market, with ten offerings targeting to raise over Rs 44,930 crore, marking the largest monthly fundraising goal in the history of the country’s capital markets.

Market analysts also noted that favorable conditions across broader indices contributed to this increase. The equity benchmarks Sensex and Nifty recorded gains of around 3 percent in October, while the BSE Midcap and Smallcap indices advanced by 4 percent and 3 percent, respectively.

Foreign institutional investors, who had been net sellers for a number of months, reverted to buying, pouring approximately $1.6 billion into domestic equities.

Looking ahead, the domestic stock market is anticipated to transition into a sideways or consolidating phase as the equity indices exhibit slight selling pressure at higher levels on the weekly chart.

Investors will be keenly observing India’s CPI and WPI inflation figures this week, which are expected to provide insights into the inflation trajectory and future policy directions.

Global investment bank Goldman Sachs (GS) has adopted a positive outlook on India, upgrading its rating on Indian equities to “Overweight” and setting a target of 29,000 for the Nifty by the end of 2026, suggesting a potential upside of 14 percent from current levels.

Goldman Sachs pointed out that recent trends indicate a shift in sentiment as valuations have become more attractive and foreign risk appetite is on the rise.

The investment bank believes that growth will be bolstered by the Reserve Bank of India's easing measures, including interest rate reductions, enhanced liquidity, and bank deregulation, coupled with GST cuts and a slower pace of fiscal consolidation.