Mumbai, Nov 10 : New demat accounts opened in October exceeded 30 lakh, marking a 10-month high and a 22 per cent increase from 24.6 lakh in September, data from depositories showed.

Analysts attributed the surge to a rebound in equity markets, return of foreign fund inflows, and flood of initial public offerings (IPO) that has heightened investor interest. Total demat accounts reached a record 21 crore, up from 20.7 crore the previous month.

In October, India's primary market saw a record number of mainboard IPOs, with 10 offerings aiming to raise over Rs 44,930 crore, marking the largest monthly fundraising target in the country's capital-market history.

Analysts also attributed the spike to robust market conditions across broader indices. Equity benchmarks Sensex and Nifty rose in October, approximately 3 per cent, while the BSE Midcap and Smallcap indices gained 4 per cent and 3 per cent, respectively.

Foreign institutional investors, who had been net sellers for several months, turned buyers and invested around $1.6 billion in domestic equities.

The domestic stock market is expected to remain sideways to a consolidating phase as the equity indices show mild selling pressure at a higher level in the weekly chart.

On the domestic front, investors will be focused on India's CPI and WPI inflation figures this week, which are expected to shed light on the inflation trend and future policy direction.

Global investment bank Goldman Sachs (GS) has turned bullish on India, upgrading its rating on Indian equities to 'Overweight' and setting a Nifty target of 29,000 by end-2026, implying a potential 14 per cent upside from current levels.

Goldman Sachs said recent trends suggest a turnaround in sentiment as valuations have cooled and foreign risk appetite improves.

The investment bank said growth will be supported by the Reserve Bank of India's easing measures, including rate cuts, improved liquidity, and bank deregulation, along with GST reductions and slower fiscal consolidation.

/IANS