Shares of capital market-focused firms, including CDSL, CAMS, and Angel One have come under sharp selling pressure amid the broader market correction, with some stocks tumbling as much as 30 percent in the past month.
Market sentiment has been hit by geopolitical uncertainties and persistent selling by foreign institutional investors (FIIs). Mid- and small-cap stocks have borne the brunt of heightened volatility, adding to investor concerns.
Adding to the pressure, mixed earnings for the October-December quarter, a stronger dollar, and fears of fresh U.S. tariffs after Donald Trump’s electoral victory have further weighed on equities.
Angel One stock has declined 22 percent in the past 30 days, while Multi Commodity Exchange (MCX) and Central Depository Services Limited (CDSL) have fallen 11.22 percent and 27 percent, respectively.
All the three stocks - Angel One, MCX and CDSL -- were trading up to 2 percent lower in today's trading session as well, even as the frontline indices were in green.
The steep fall in CDSL came despite the depository achieving a milestone of over 14.65 crore demat accounts as of December 31, 2024. During the third quarter of FY 2024-25, around 92 lakh new demat accounts were opened. The company reported a 21.5 percent year-on-year rise in consolidated profit after tax (PAT) at Rs 130 crore.
CAMS shares have dropped over 28 percent, while Motilal Oswal Financial Services has declined more than 32 percent in the same period. In the trade today, CAMS share price dropped 8.36 percent to an intraday low of Rs 3,615 per share on the NSE.
Analysts attribute the weakness in capital market stocks to concerns recent correction in the broader markets and high valuations after a sustained rally in the sector, prompting investors to book profits amid cautious sentiment.
Sluggish domestic economic growth and global headwinds, including elevated U.S. bond yields and tariff uncertainties continue to hit the investor sentiments.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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