The Indian stock market is witnessing a surge in capital market-linked stocks, with shares of Central Depository Services Ltd. (CDSL) and Bombay Stock Exchange (BSE) hitting record highs. Other financial services players, such as Motilal Oswal Financial Services and Angel One, are also showing notable movements. Here’s a closer look at what’s driving these gains and what it means for investors.
Key Performers and Market Highlights
1. CDSL: A Stellar Performer
Record High: ₹1,865.4
2024 Gains: Doubled in value this year.
Monthly Performance: Up 19%.
Catalyst: CDSL’s inclusion in the Futures & Options (F&O) segment has significantly boosted trading activity. This strategic move enhances liquidity and attracts both retail and institutional investors.
2. BSE: Surging Alongside CDSL
Record High: ₹5,168.9
2024 Gains: Up a remarkable 128%.
Monthly Performance: 9% growth.
Catalyst: The Bombay Stock Exchange has also entered the F&O segment, increasing its market appeal and volumes.
3. Motilal Oswal Financial Services: Outperformer of the Year
Intraday High: ₹1,016
2024 Gains: Tripled in value with a 213% increase.
Monthly Performance: Up 6%.
Notable Trend: A strong rally driven by robust growth in financial advisory and broking businesses.
4. Angel One: A Recovery Story
Intraday Gain: 3.5%.
Monthly Performance: Up 8%.
2024 Performance: Down 12%, underperforming its peers.
Current Status: Still 20% below its record high of ₹3,896, but showing signs of recovery.
Why Are These Stocks Rallying?
1. Inclusion in the F&O Segment
CDSL and BSE’s entry into the F&O segment has been a game-changer. It allows traders to hedge their positions and enhances market liquidity. This has resulted in higher volumes and increased investor interest.
2. Sector-Wide Momentum
The financial services and capital market infrastructure sectors are experiencing strong tailwinds. Growing retail participation in equity markets and favorable regulatory policies have bolstered investor confidence.
3. Robust Business Fundamentals
Companies like CDSL and BSE operate at the core of India’s capital markets, benefiting from a structural rise in trading volumes, demat account openings, and overall market development.
Disclaimer -- This information and prices are as per NSE , BSE as on 5 December 2024