Broking houses shares in focus; Geojit zooms 20%, Angel Broking surges 17%

Shares of companies engaged in broking business rallied by up to 20 per cent at the bourses on Monday on expectation of strong earnings growth due to the uptick in the markets and a healthy addition of new clients.

Geojit Financial Services was locked in 20 per cent upper circuit at Rs 57.75, also its 52-week high on the BSE on the back of heavy volumes. The stock has rallied 44 per cent in the past three days. The trading volumes on the counter jumped over five-times with a combined 4.3 million shares changing hands. There were pending buy orders for 300,000 shares on the NSE and BSE.

Shares of Angel Broking soared 17 per cent to Rs 407, its highest level since listing on October 5, 2020. The company, on Friday, said its overall average daily turnover (ADTO) has grown by 416 per cent year-on-year (YoY) to Rs 2,260 billion in the month of November 2020. On month-on-month (MoM) basis, ADTO rose 17.5 per cent, it said.

The retail turnover market share on overall equity increased by 958 basis points to 15.4 per cent in November from 5.9 per cent in November 2019 and 78 basis points MoM from 14.7 per cent in October 2020. The company’s client basis, during the November month, saw growth of 92.9 per cent YoY at 2.97 million, it said.

Angel Broking is one of the largest retail broking houses in India in terms of active clients on NSE. The company is a technology-led financial services company providing broking and advisory services, margin funding, loans against shares and financial products distribution to its clients under the brand “Angel Broking”.

For the July-September quarter (Q2FY21), Angel Broking had reported the highest-ever quarterly profit after tax (PAT) at Rs 74.6 crore against Rs 48.3 crore in June quarter of the current fiscal (Q1FY21).

Among other stocks, Motilal Oswal Securities was up 5 per cent to Rs 676 in intra-day trade, while ICICI Securities and 5paisa Capital were up 2 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.17 per cent at 45,154 points, at 10:32 am.

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