July demat account additions hit six-month high in India

A demat account is like a digital locker where people safely keep shares of companies.

In July, a lot of people in India opened new demat accounts to buy shares.

About 2.89 million new accounts were opened, the most in six months.

Together, Indians now have 234.4 million demat accounts.

Experts say people are excited because share prices have recovered after falling in March.

The Nifty index rose 10% and the Sensex rose about 9% from their March lows.

The government also sold part of LIC, a big insurance company, raising nearly Rs 32,000 crore.

A fund company called SBI Funds Management sold shares too, and all of them were bought.

Many more companies, including NSE and Jio Platforms, want to sell shares soon.

That is why so many people are opening demat accounts.