Angel One and Groww Lead Capital Market Gains in 2026 Amid Market Slump

In 2026, several capital market companies have posted impressive growth figures even as the overall market experienced a downturn. Notably, Angel One and Groww saw their stock prices climb significantly, with some gains reaching as high as 38 percent. This surge comes despite a general sell-off in broader indexes, highlighting a shift in investor focus towards companies linked to primary market activities.

The increase in initial public offerings (IPOs) has played a central role in this development. With a record number of IPOs capturing investor attention this year, the primary market has become a hotspot for new investments. This heightened activity has contributed to a rise in trading volumes and a boost in investor participation across capital market stocks.

Investor behavior has shifted notably, with a growing number showing preference for IPOs rather than established secondary market stocks. Foreign investors have been particularly active in this trend. In September alone, overseas participants invested ₹8,551 crore into IPOs while simultaneously pulling ₹35,860 crore from secondary market holdings. This suggests a strategic repositioning of funds towards fresh offerings viewed as promising.

As a consequence, the number of new demat accounts opened has increased steadily. August saw nearly 3.27 million new demat accounts added by the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), marking the highest monthly increase since January 2026. This growth followed a period of relative stagnation between January 2025 and May 2026, indicating renewed interest in stock market participation.

The total number of demat accounts reached 237.7 million by the end of August, reflecting a broadening base of market participants. This expansion is expected to continue as major IPOs are on the horizon. For instance, Jio Platforms is anticipated to launch its public offering soon, which market experts believe will further accelerate demat account openings. Additionally, media reports suggest Coca-Cola Co. may file a draft prospectus for its Indian bottling unit's IPO in December, adding to the list of significant upcoming offerings.

Among capital market stocks, Anand Rathi emerged as the top performer with a 38 percent gain so far in 2026. Angel One followed with a 26 percent rise, closely matched by Motilal Oswal Financial Services and BSE, which recorded increases of 26.34 and 25.56 percent respectively. Billionbrains Garage Ventures, the parent company of Groww, also delivered strong returns, up 23 percent this year.

These gains outpaced the broader market, as illustrated by the Nifty Capital Market index, which climbed 13 percent in 2026. In contrast, the Nifty 50 index fell by 13 percent during the same period. This divergence underscores the resilience and appeal of capital market stocks amid wider market challenges.

Global brokerage firm Phillip Capital recently initiated coverage on Groww and Angel One, assigning 'buy' ratings and setting price targets of ₹245 and ₹388 respectively. Such endorsements add to investor confidence in these companies' growth prospects.

India’s IPO market has been robust this year. Between July and September, IPO proceeds reached nearly $10 billion—the highest quarterly figure on record. This was propelled by major listings such as the National Stock Exchange of India Ltd. and SBI Funds Management Ltd. The momentum continued with 220 companies listing on stock exchanges across the mainboard and SME segments in 2026, following 376 listings in 2025. The expanding IPO calendar and rising investor interest suggest that capital markets will remain a focal point in India's financial landscape.

The developments in capital market stocks reflect broader trends in India's financial markets where retail and institutional investors alike are seeking fresh opportunities amid uncertain market conditions. As IPOs continue to attract substantial capital and new investors enter the market, companies connected to this ecosystem stand to benefit from sustained growth and increased visibility.

Ksheera Sagar, Market Research Analyst at LiveMint, has closely monitored these trends. With over a decade of experience including tenure at J.P. Morgan, he provides detailed insights into equity markets and IPO dynamics. His analysis highlights the underlying factors driving the strong performance of Angel One, Groww, and other capital market players in a complex market environment.