Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Retail buying at a 15-month high
Fri, 26 Aug Pre-Open

The European debt crisis and the downgrade of the US credit rating by Standard and Poor (S&P) coupled with growing fears about the slowdown in the world economy and recession in some of the developed countries led the world stock markets as well as India's stock market to crash, the worst since September 2008.

The Indian brokerage industry has been facing a tough time. Indian stock markets have been relying on inflows from foreign institutional investors (FII) for generating volumes. The inflows in 2011 have been the lowest since 2002 leading to decline in brokerage. The downturn is because of declining volume, low earnings and even lesser return. Indian stock markets have been the worst performers among all emerging markets in the current year. The Indian investors are also not putting their money in equity markets due to lack of return. Most of the brokerages are either eliminating staff or shutting shop altogether. 48 broking firms have surrendered either their NSE or BSE membership over the last year.

The sharp correction witnessed in the market has suggested several attractive valuations. There are lots of bargain opportunities available for investors in many of the midcaps and largecaps stocks which are trading at distressed valuations. Looking to cash in on this opportunity, buying from retail investors and high networth individuals surged to a 15 month high. Data from Bombay Stock Exchange (BSE) showed that net shares bought in August so far were highest since May 2010. This augments well for the brokerage industry as more volumes will lead to more brokerage and this will help the industry to come out of the slump.

However buying from foreign and institutional investors segment which generate maximum brokerage has not picked up. Once institutional inflows start pouring into India then only will the brokerage industry be able to recover. But at least the current downturn has brought investor participation back into the markets. So the current crash might just be the blessing in disguise which the Indian brokerage industry desperately needs to get back on its feet.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Retail buying at a 15-month high". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.