Brind.
  1. CAS's derivative revenue is expected to decline QoQ, while Groww continues to see momentum in its MTF book growth.

Indian Brokerage Firms Report Strong Profit Growth Despite Market Slowdown

1 report, 1 independent Updated Oct 25
AI-generated briefing. Brind wrote this from the reports listed below. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.

What happened

Some supportReported by 1 outlet

Brokerage firms reported strong year-on-year profit growth in the September quarter, supported by higher contributions from margin funding and other businesses. The introduction of the closing auction session (CAS) in August coincided with a decline in derivatives turnover. Average daily equity cash-market turnover on the NSE and BSE fell 11.7 per cent sequentially to ₹1.29 lakh crore in the July-September quarter.

From thehindubusinessline.com

Why it matters

Some supportBrind's analysis of the reports

The profit growth occurred despite market sentiment being weighed down by rising global bond yields, foreign investor outflows, and higher oil prices. Groww reported that its contribution from equity derivatives declined to 45 per cent, driven by market adjustments to CAS, though the company expects a recovery after SEBI's reviewed measures take effect.

CAS's derivative revenue is expected to decline quarter-over-quarter, while Groww continues to see momentum in its margin trading facility book growth.

From thehindubusinessline.com

Who's involved

  • CASThe closing auction session (CAS) mechanism, which coincided with a decline in derivatives turnover.
  • GrowwIndian fintech company that reported a 54 per cent year-on-year increase in consolidated profit after tax.
  • HDFC securitiesFinancial services company that is reported to be part of the brokerage sector experiencing profit growth.
  • Kotak SecuritiesBrokerage firm that reported a 58.2 per cent rise in consolidated PAT in the September quarter.
  • Securities and Exchange Board of IndiaGovernment agency that formally regulates and reviews CAS's participation and market functioning.
  • Kotak Mahindra BankIndian private sector bank that is related to Kotak Securities.
  • ZerodhaIndian financial services company that is a competitor in the FinTech brokerage market.

Who could feel it

Possible knock-on effects

These are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.

  • GrowwSpeculative

    Groww might see its revenue from equity derivatives continue to decline due to market adjustments to CAS.

  • ZerodhaSpeculative

    Zerodha could face shifts in market share and clients as it competes with Groww in the FinTech brokerage market.

Possible ripples

Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.

Keep exploring

Part of

CAS's derivative revenue is expected to decline QoQ, while Groww continues to see momentum in its MTF book growth. All 1 developments

The entities involved

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Coverage

Newest first; wire copies grouped