ICRA believes that the outlook for the brokerage industry is stable, though its revenue trajectory and profitability are expected to moderate from the FY22 levels
The profitability of the domestic broking industry fell to 34 per cent in Q1FY23 from 38 per cent in the similar period last year due to geopolitical concerns and the adverse macroeconomic outlook
Shares of leading listed brokerages have declined between 26% and 46% from 2022 highs
The influx of retail investors to the market is also visible from the 179 per cent increase in trading volumes during the first nine months of FY22
Meanwhile, the average daily trading turnover (ADTV) in the option segment rose six per cent month-on-month
The main concern for the PSU banks is governance, says Pradeep Gupta of Anand Rathi Shares & Stock Brokers
'The ongoing investor exuberance is expected to wane gradually. The trading volumes are expected to moderate compared to the peak witnessed in the last few months,' says an ICRA official
Today, barely 3 per cent of our population currently invests in stocks or mutual funds; we see great opportunity to expand
ICICI Securities saw brokerage income jump 61 per cent, while Motilal Oswal saw strong traction in cash market share and the highest ever quarterly client addition
Revenues during the same period have grown from Rs 760 crore to an estimated Rs 1,330 crore for this financial year
The number of active investors has gone up 30-40% for most top brokers after the Covid outbreak
Widens product offering after mutual funds, pension schemes
Zerodha CEO Nithin Kamath says not being answerable to anyone is the best part of his life, so the company is not looking for a funding
New norms designed to improve transparency, boost investor protection