Brokerage stocks plunge over 5% despite NSE reducing transaction charges for cash, derivatives segments

The benchmark equity indices, SENSEX and NIFTY50, staged a comeback on Tuesday, a day after massive sell-offs. The BSE SENSEX settled 165.32 points or 0.22% higher at the 73,667.96 level, while the NIFTY50 closed flat with a gain of 3.01 points, or 0.01%, at 22,335.7.

In a see-saw trade on Tuesday, the 30-share BSE SENSEX surged over 500 points but gave up most of its gains towards the closing trade. During the day, the index dived around 662 points from the day's highest level. Likewise, the broader NIFTY oscillated between a high of 22,452.55 and a low of 22,456 in Tuesday's trade.

Shares of most brokerage firms saw moderate to heavy selling on Tuesday despite the National Stock Exchange (NSE) board approving a 1% reduction in transaction charges for cash equity and equity derivatives segments effective April 1, 2024. Leading brokerage firms like SMC Global Securities Limited, Angel One, Dolat Algotech, Monarch Networth Capital and Nuvama Wealth Management were among the top losers.

In today's market wrap, let's look at the performance of the shares of major brokerage firms.

Angel One

Angel One shares plunged over 5.4% to close at ₹2,530 apiece on the NSE today, marking their fifth straight session of loss. The brokerage's shares started the session positively but lost momentum as the day progressed. Its shares swung between a high of ₹2,685.5 and a low of ₹2,502 apiece.

ICICI Securities

Shares of ICICI Securities Ltd fell for the second straight day on Tuesday, ending 2.71% lower at ₹751.5 apiece on the NSE. The stock opened on a sluggish note and went on to hit the day's low of ₹744.55 in intraday trade.

Motilal Oswal Financial Services

Motilal Oswal Financial Services shares ended marginally higher at ₹1,533 on the NSE, snapping their four-day losing streak. The stock opened on a positive note and hit the day's high at ₹1,552.75 apiece before easing some of the gains.

Anand Rathi Wealth Limited

Anand Rathi Wealth shares ended almost flat at ₹3,920 apiece, down lower by 0.08%, on the NSE. The stock opened flat at ₹3,922.95 apiece but gained strength as the trade progressed and briefly traded above ₹4,000 level.

SMC Global Securities Limited

SMC Global Securities shares tanked 5.55% to close at ₹119.90 apiece on the NSE. The brokerage firm’s shares opened flat but came under massive selling pressure during the intraday trade, reaching the day's lowest level at ₹115 apiece.

5Paisa Capital Ltd

5Paisa Capital shares snapped their four-day losing streak, ending almost flat at ₹514.9 apiece, up 0.06%, on the NSE. After a gap-up opening the stock failed to carry on that momentum. The stock hit an intraday low of ₹500 and a high of ₹524.85.

IIFL Securities Ltd

IIFL Securities shares dropped 0.6% to end at ₹124.8 apiece on the NSE. The stock swung between a low of ₹120.75 and a high of ₹126.9 during the day.

Dolat Algotech Ltd

Shares of Dolat Algotech tanked 4.64% to settle at ₹70.9 apiece on the NSE. Despite opening higher on Tuesday, the stock failed to avoid selling pressure and hit the day's lowest level at ₹70.4. The brokerage firm marked its third straight session of loss on Tuesday.

Geojit Financial Services Ltd

Shares of Geojit Financial Services Ltd closed 1.52% lower at ₹67.95 apiece on the NSE. Intraday, the stock touched the day's high at ₹70.2 and a low of ₹66 apiece in intraday session.

Nuvama Wealth Management Ltd

Shares of Nuvama Wealth Management Ltd closed 3.22% lower at ₹3,847 apiece on the NSE. This marked the fourth consecutive session of losses for the brokerage firm. Intraday, the stock touched a low of ₹3,822 apiece.

Monarch Networth Capital

Shares of Monarch Networth Capital slumped 4.1% to close at ₹563.05 apiece after a tepid opening on the NSE. Intraday, the stock hit a high of ₹599 and a low of ₹562.45 during the session.