The record market turnover across cash and F&O markets (BSE + NSE), seen in the December quarter, has had a positive impact on the capital-market related income of domestic brokerages for the same quarter.
For Motilal Oswal Financial Services (MOFSL), profit after tax (PAT) rose by 121% y-o-y to R35.9 crore, while income from broking and other related activities rose 55.8% to R118.08 crore.
IIFL Holdings, which operates in 3 major segments – fund-based activities, financial products distribution and capital market activities, saw a 70% rise y-o-y to R120.64 crore. The firm’s income from capital market activities, rose 21.21% y-o-y to R98.83 crore.
In FY15 so far, October and November have record market turnover. On the day of F&O expiry in October, the combined market turnover rose to an all-time high of R10.52 lakh crore. The turnover crossed the R10 lakh crore-mark once again on the day of November expiry.
Foreign institutional investors (FIIs) bought shares worth $2.3 billion during the December quarter, while domestic institutional investors bought shares worth $378 million in the same period.
Motilal Oswal, CMD of MOFSL, said, “Backed by renewed investor interest and positive market outlook, our businesses gained significant traction across asset mobilisation, market share and revenue.”
Other brokerage houses believe timely measures by policymakers is likely to keep investor sentiment positive, going forward. “By cutting key policy rates, the Reserve Bank of India has set the tone for broader fiscal consolidation efforts by the government. Going forward, we expect economic activity to pick up momentum in 2015”, said Nimesh Kampani, chairman of JM Financial Group.
Edelweiss Financial Services, saw its net profit more than double to R34.63 crore. Revenues from fee and commission rose 85.4% y-o-y to R159.67 crore. Fee and commission includes income from broking, corporate finance advisory, asset management, wealth advisory business and credit business.
For Geojit Financial Services, the income from broking and financial services rose 33.81% y-o-y to R58.73 crore in Q3, while its net-profit rose by 22.32% y-o-y to R14.3 crore.