Brokerages That Gained The Most Since Note Ban
Brokerages Outperform Financial Services Peers Since Note Ban
Broking firms are reaping rich rewards of Indians’ new-found love for financial assets.
Shares of four brokerages lead the gains among top 100 financial services companies since Prime Minister Narendra Modi announced demonetisation in November last year. The note ban triggered a shift from physical assets like gold and real estate to investments in mutual funds and insurance, an RBI study found.
Leading the list is Indiabulls Ventures Ltd., which gained 1,070 percent during the period. Broking peers Geojiit Financial Services, Centrum Capital and Motilal Oswal Financial Services rose 269, 192 and 170 percent, respectively.
Tourism Finance Corporation Ltd., Edelweiss Financial, IIFL Holdings and Bajaj Finance follow with gains of between 97 to 140 percent. Banks trail with the country’s largest private lender by assets, HDFC Bank Ltd., returning 43 percent during the period.
What has also aided the rally is that several brokerages have entered the lending business.
Their profitability is expected to improve in the ongoing financial year, driven by higher revenues amid a stock market rally, rising interest income and cost cuts, ICRA said in a report in September.
Note: Only the companies with a market capitalisation of Rs 1,000 crore or more were considered for analysis.