Demat account additions in India have slowed to the lowest pace in 21 months, coinciding with a significant downturn in the stock market. This decline follows sustained selling by foreign investors and is exacerbated by elevated valuations, a slowing economy, and weak earnings growth. Eight of the top ten brokerage firms reported a decrease in active investors for February, as retail investors have become increasingly hesitant to engage with the market following five months of consecutive corrections. The broader Indian equity markets are experiencing their worst downturn since the Covid-19 pandemic, leading to a notable decline in new investor influx.