Angel Broking, Geojit: More upside likely for brokerage-related stocks

Increased volumes-based buying shows market participants' keen interest in brokerage firms

The stock broking and asset management industry has been one of the most rewarded industries amid the Covid-19 pandemic. As financial institutions lowered interest rates to spur economic growth, investors turned to stock markets to secure their financial position. In FY21, the industry revenues are pegged to have grown between 65-70 per cent over FY20. The strong growth was underpinned by robust addition in new customers, according to rating agency Crisil.

In the first nine months of FY21, the broking industry added 5.2 million new clients – more than what they added during the preceding four years, cumulatively. As on