Home >Markets >Stock Markets >CDSL, CAMS, Angel Broking shares continue to surge. Why broking stocks are gaining

Amid the new investors turning up to participate in the Indian stock markets and that leading to the rise in demat account openings, broking companies' stocks have been rallying since the past few sessions on their improved business outlook. Central Depository Services Limited (CDSL) shares have gained around 40% in a week whereas Computer Age Management Services (CAMS) is up over 20% in four days.

In Friday's early deals, CDSL shares jumped nearly 3% on the NSE while CAMS jumped over 4% on the BSE. Domestic brokerage firm Angel Broking's shares surged nearly 8% after the company announced its Q1FY22 earnings.

Angel Broking said that the company witnessed its highest gross client addition of 1.2 million in the first quarter, registering a growth of 26% QoQ and 247% YoY. Its income growth was aided by strong growth in client base and high client activity.

CDSL is one of the two depositories in India and the only listed one in the country, the other being National Securities Depository Limited (NSDL). It facilitates holding and transacting in securities in the electronic form and facilitates settlement of trades on stock exchanges. CDSL recently became the first depository to open more than four crore active Demat accounts.

CAMS which is a Mutual Fund Transfer Agency to the Indian AMCs has an aggregate market share of approximately 70% based on average assets under management (AAUM) managed by its clients. Domestic brokerage and research firm HDFC Securities expects strong tailwinds for AMCs as active equity witnessed healthy net inflows led by SIPs.

The capital markets witnessed an unprecedented monthly addition of 2.4 million new retail investors over the past four months. ''We expect the larger organised players to see sustained market share gains. Increased retail activity and a market clocking all-time highs have supported higher volumes, thereby boosting broking revenues,'' brokerage company HDFC Securities said in a recent note.

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