September signals strong market momentum for brokers and asset managers

September has emerged as a robust month across various segments of the capital market, with both broking and asset management sectors showing promising trends. This report highlights the key developments and trends in these areas.

Broking Segment Sees Remarkable Rebound

Brokers witnessed a remarkable turnaround, with active clients growing for the third consecutive month after experiencing a prolonged decline from July 2022 to June 2023. Notably, average daily cash trades saw a notable 7% month-on-month (MoM) increase, and the average daily number of derivative contracts traded also surged by 7% MoM.

These figures not only reflect renewed investor confidence but also point to a potentially dynamic market environment, where trading activity is on the rise.

Asset Management: Steady Growth Continues

In the asset management arena, despite a moderation in net equity inflows to Rs 139 billion, it remained notably higher than the monthly average of Rs 121 billion for the fiscal year 2022-2023. Furthermore, Systematic Investment Plan (SIP) inflows continued to show resilience, with a 4% quarter-on-quarter (QoQ) growth and an impressive 27% year-on-year (YoY) increase, reaching Rs 164 billion.

Changing Dynamics Among Listed AMCs

Within the listed Asset Management Companies (AMCs), a shift in market share was observed in the equity Assets Under Management (AUM) segment. HDFC and Nippon AMCs gained market share QoQ, underscoring their growing influence in the industry. On the other hand, UTI and ABSL AMC saw a decrease in market share for the same period.

Preferred Picks for Capital Market Enthusiasts

In light of these positive developments, Angel One and 360 One emerge as preferred choices for our experts looking to capitalize on the capital markets theme. Their strong performance and potential for continued growth make them noteworthy selections in the current market environment.

The uptick of active clients, increased trading activity, and consistent growth in SIP inflows provide a positive outlook for the future. As the capital market continues to evolve, these recent trends offer valuable insights for investors and market enthusiasts alike.