Shares of Central Depository Services Limited (CDSL) surged over 5% in Monday’s early deals on the NSE whereas stock exchange Bombay Stock Exchange (BSE) shares were trading over 7% higher on the NSE.
In 6 months alone, CDSL shares have given multibagger returns as the stock has surged more than 100% during the period. Meanwhile, BSE has also turned into a multibagger stock by giving over 120% returns in the last 6 months.
Brokerage firm ICICI Securities in a recent note has recommended an ‘Add’ rating on the BSE stock whereas it has a ‘Hold’ stance on CDSL. The brokerage collated the turnover of National Stock Exchange (NSE) to determine the impact on turnover post the implementation of 4th phase of margin norm. It said that the full margin norm that has been implemented recently has no major impact on equities unlike commodities.
The total NSE cash turnover had only a modest impact due to these margin norms. Whereas, MCX Futures ADTV (Average Daily Trading Volume) has declined from fro, Rs284bn in Q1FY22 to ₹231 bn in September 21, however, the brokerage has a ‘Buy’ recommendation on MCX shares.
CDSL is one of the two depositories in India and the only listed one in the country, the other being National Securities Depository Limited (NSDL). It facilitates holding and transacting in securities in the electronic form and facilitates settlement of trades on stock exchanges. Whereas, BSE is the oldest and India’s first equity index launched in the country.
Amid the new investors turning up to participate in the Indian stock markets and that leading to the rise in demat account openings, broking-related companies’ stocks have rallied significantly this year on improved business outlook.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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