ICICI Securities falls 1% as CLSA downgrades rating, earnings view

Shares of ICICI Securities declined 1.3 per cent on Wednesday to Rs 418 after CLSA cut its earnings estimate for the stock amid thinning volumes in the cash-market segment.

Shares of the largest listed brokerage have nearly halved this year.

“Over the past six months, we have been highlighting the dichotomy in trading volumes, with cash equity trading volumes being flat-to-marginally down, while futures and options (F&O) volumes consistently rising. Such a scenario is negative for traditional brokers like ICICI Securities whose revenue depends primarily on cash volumes,” said CLSA in a note.

It has lowered the revenue estimates for