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Brokerage biz likely to grow 15-20% in FY'18: ICRA

PTI:  September 08, 2017

Kolkata: Revenues of the broking industry are expected to increase to Rs 18,000-Rs 19,000 crore in FY18, clocking a growth of 15-20 per cent on the back of healthy volumes and increase in the share of cash segment, a study said.

Am ICRA note said that volumes are likely to grow by about 20-25 per cent in FY'18 supported by positive investor sentiments.

The agency said the initial public offer (IPO) pipeline for FY'18 is likely to further support retail participation on the exchanges.

"The higher yielding cash volumes are expected to receive a boost with a likely increase in margin trading by brokerage houses pursuant to the recent regulation on lower margin requirements," ICRA said in a statement.

The domestic capital markets revived in FY'17, after a year of lacklustre performance, supported by favourable market sentiment, healthy foreign institutional investment inflows, and growing domestic institutional investor participation in the market.

Equity turnover at the exchanges registered a robust growth of about 35 per cent in FY'17.

The increase in DII inflows provides greater resilience to the domestic capital markets. While the current capital market outlook is benign and the IPO pipeline for FY18 is likely to encourage retail participation," ICRA Senior VP and group head financial sector ratings, Karthik Srinivasan said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.