Bull run opens up job market for dealers

Written by Jash Kriplani | Mumbai | Updated: Sep 24 2014, 06:05am hrs
BSE SensexNitin Jain, president & head of Retail Capital Markets at Edelweiss, said the company has hired around 70 dealers in the last three months.
After several equity dealers lost their jobs last year with low volumes forcing brokerages to shut shops, the rally in markets is giving new job opportunities to the dealers.

Nitin Jain, president & head of Retail Capital Markets at Edelweiss, said the company has hired around 70 dealers in the last three months. We have hired 70 odd people from May 1, 2014, till August 31, 2014. The total number of dealers that we have stands at 500 (does not include the sales team). We are currently hiring and plan to expand the teams considerably in the near future, said Jain.

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In FY14, equity dealers lost jobs as 821 brokerages shut shops. The number of Sebi-registered brokers at the end of March 31, 2014, stood at 9,411 from 10,248 on March 31, 2013.

However, with the benchmark indices hovering near all-time highs, markets are seeing increased participation from all quarters. The share of retail turnover to total cash turnover rose to a two-and-half year high of 51.79% in June, 2014.

S Ranganathan, head of Research at LKP Securities, says the brokerage has hired 200 dealer-cum-sale representatives in last 3 months. Uptick in the hiring is a typical phenomenon seen in every bull market. Earlier, we had between 500 and 700 people, who were dealing with our clients, Ranganathan added.

The BSE benchmark Sensex has gained 26.48% YTD on the back of strong volumes. The combined market turnover for F&O and cash segment touched all-time high of Rs 6.84 lakh crore of June 26. Tuesday's turnover levels were also in excess of Rs 6 lakh crore and fifth highest ever.

Further, the turnover in the high-yielding cash segment has also seen an uptick. The average daily cash turnover for CY14 stands at Rs 18,955 crore; about 40% higher than the levels seen in CY13.

According to Anand Rathi, founder & chairman, Anand Rathi, the company has been hiring dealers and relationship managers. We are bound to see more hirings in these kind market conditions. Our hiring has been across all segments. We have been hiring business-related people, Rathi said.

Angel Broking has hired between 300 and 400 dealers in last three months. Earlier, there was under-utilisation of the resources. However, now the sources are being fully-utilised. Most of the recent hiring at the company has been to fill the positions, said a source. The brokerage refused to comment to an e-mail request for numbers.