Brokerage stocks flying high

Brokerage stocks were high flyers in today’s trade. During the past months they were significantly down. With volumes coming down the brokerage business was affected negatively. Not only FII but also retail participation was low. But today the stocks bounced back with good volumes and were up anywhere between 5% to 20%. Among the leaders were India Bulls Finance, Edelweiss Capital they were up 20%.

According to Gaurang Shah brokerage stocks were over sold; thet had seen heavy sell off after the Budget. Going ahead stocks in pure brokerage and presence in other verticals like commoditiy and other financial areas are expected to do well. Brokerage houses will see arbitrage and jobber opportunities.