Market Trends of India Security Brokerage Industry
Increasing Demat account and brokerage business affecting Indian Security Brokerage Market
National Security Deposit Limited regularly regularizes all the electronic Demat accounts operating in India for buying and selling securities through brokerage websites online. The value of assets held under custody increased for debt, equity, and other securities. Last year they observed 24.96 lacs new Demat account openings, with a growth of 54% as a result of an increase in retail investors' surge for profit. Of the total depository participants, stock brokers occupy the largest segment, with banks coming next, and corporate actions consisting of the distribution of securities arising out of an IPO, Right Issue, observed a growth of 12%.
These trends signify an increase in the purchase of stocks by retail investors and an increase in business for brokers in the issue and sale of securities.
Trend in Stock Indices affecting Indian Security Brokerage Market
Two main stock exchanges operating in India are the National Stock Exchange and the Bombay Stock Exchange, which provide indices over the overall trend of different market segments. This trend helps retail investors form their speculation and decide whether to buy more stocks or sell existing shares. Both indices observed a bullish run, leading retail investors to buy shares with the expectation of increasing the price and gaining a profit.
This leads to increased business activity done by brokers as intermediaries for providing securities and gaining profit. With an increase in the global interest rate for controlling inflation and the contractionary policies of major central banks, stock indices turned down with a large sale of securities in the brokerage market.
