Shares of capital market-related companies on Monday erased some of the losses from Sunday when they had sharply fallen tracking the increase in the securities transaction tax on derivative transactions.
The BSE rose the most by around 4.8% to Rs 2,701.60 after an 8% fall on Sunday. Sundararaman Ramamurthy, MD & CEO, said the recalibration of the STT is designed to encourage investors focus on long-term equity participation, thereby fostering healthier liquidity and more sustainable market dynamics.
What does the Jefferies report say?
Jefferies report sees this as a sentimental negative. However, the impact on the option turnover is likely to be limited, it said, noting a similar increase in overall expenses in July 2024 Budget had limited impact on orders or participation. Its discussions with industry experts indicate up to 5% volume impact.
Amit Majumdar, group chief strategy officer, Angel One, said its diversified revenue mix reinforces the resilience of its model and expressed confidence that the broader trajectory of the business remains firmly intact.
Market figures
MCX rose 4% to Rs 2,322.40 after a 12% fall on Sunday.
Angel One also rose 4% to Rs 2,405.05. According to a report by JM Financial, this can adversely hit volume and it estimates that a 5%/10%/20% hit on volumes would dent Angel One’s FY27E PAT by 6%/11%/22%. For Groww, a 5%/10%/20% hit on volumes could drag its FY27E PAT down by 4%/7%/14%.
Share price of Groww fell 2.29% on Monday after Sunday’s 5% decline. Among wealth managers, JM expect Nuvama to be most impacted — a 5%/10%/20% hit on volumes would dent its FY27E PAT by 2%/3%/5%, it said. Nuvama rose nearly 3% on Monday and 360 One WAM closed 0.8% higher.