Domestic brokerages cash in on D-Street party

Tighter cost structure, online expansion, and MF distribution help broking outfits shore up revenues

The record run-up in the market has helped domestic brokerages — both pure-play and diversified — shore up revenues. The euphoria is reflected in the doubling of share prices of all major listed players this year.  

The frenzy present during the previous bull run of 2003-07, however, has largely been missing. Brokerages have cut costs, adopted the online model more aggressively and refrained from reckless expansion, a characteristic of the previous bull run. They are also hand-holding investors better. While direct equities continue to remain the bread-and-butter for most, brokers are pushing mutual funds, especially to newer clients, something