Investors are disillusioned with the stock market, 35 lakh active investors left in one year, big blow to Zerodha and Angel One

News India Live, Digital Desk: The last one year has been full of ups and downs for the Indian stock market, which has had a direct impact on the participation of retail investors. According to the latest data from the National Stock Exchange (NSE), there has been a huge decline in the number of active investors in the financial year 2026 (FY26). This is the first time in the last three years that such a large number of investors have moved away from the market. According to statistics, about 35 lakh active investors Have gone out of the market.

7% decline in active investor base

According to NSE data, the number of active investors (those who trade at least once a year) in FY 2025 4.92 crores Was, which will reduce in financial year 2026 4.58 crores is left. This is an annual decline of 7%. Market experts believe that the frenzy that was seen in the stock market after the Corona period, now seems to be cooling down.

These three big brokers suffered the most loss

Only three big discount brokers account for more than 70% of the total investors who exited the market. The exit of investors is also likely to affect the revenue of these companies:

Zerodha: the most 9.95 lakh Active investors lost (29% of total decline).

Angel One: close to 8.15 lakh Active accounts decreased.

Upstox: from this platform also 7.6 lakh Investors turned away.

Apart from this, traditional brokers like HDFC Securities, Sharekhan, and Motilal Oswal have also suffered losses of 1 to 1.25 lakh investors.

Why is investor confidence breaking?

Market experts have cited several major reasons behind this decline:

Tremendous rise in gold: The year 2025-26 saw a historic surge in gold prices (crossing ₹1.5 lakh per 10 grams). Investors withdrew money from the stock market and shifted it to gold for safe investment.

Geopolitical Tension: The tension that started in the Middle East (Israel-Iran-America) after the Ukraine war pushed the global markets as well as the Sensex and Nifty to record low levels.

strict rules: Small speculators were driven out of the market due to strict measures taken by SEBI in the derivatives (F&O) segment and margin rules.

Lack of Returns: In the last one year, Nifty and Sensex could not give returns as per expectations, due to which new investors were discouraged.

Some brokers shine even in adverse circumstances

While the big discount brokers have struggled, some traditional brokers have increased their stakes. ICICI Securities Market share increased from 3.96% 4.57% has happened, while SBI Securities has also gained 2.55%. This shows that investors are now turning to experienced and trusted institutions in a volatile market.