Capital Market Shares Experience Moderate Gains Amid Strong Q4 Results and Improved Business Outlook
NSE and Capital Market Firms See Gains in Share Price
Shares of BSE and other capital market firms rose significantly on Wednesday, following the strong March quarter results from the National Stock Exchange (NSE) and a positive April business update from Angel One. The NSE reported an 8 percent rise in consolidated net profit for the fourth quarter, aided by growth in equity derivatives trading.
NSE's Strong Financial Performance
The exchange posted a consolidated profit after tax of Rs 2,871 crore for the quarter ended March 31, compared with Rs 2,650 crore in the year-ago period. This represents a 22 percent year-on-year increase in total income, with revenues rising to Rs 5,360 crore. The NSE's financial performance comes as the exchange moves closer to a long-awaited stock market listing. The market regulator has allowed the exchange to proceed with an initial public offering through an offer-for-sale by existing shareholders.
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Angel One's Positive Business Update
Capital market stocks also drew support from Angel One's April business update. The company reported a significant growth in its client base, which rose 20 percent to 3.779 crore. Additionally, average daily orders for the month increased 21 percent year-on-year, while the number of orders grew over 27 percent. Based on options premium turnover, average daily turnover in April more than doubled from a year ago to Rs 2.46 trillion. Average daily turnover in the futures and options segment rose 24 percent year-on-year to Rs 166 billion.
Market Reaction
As a result of the positive updates, shares of BSE rose 3 percent to Rs 3,833 per share on the NSE. The Nifty Capital Market index was up 1.5 percent, with 15 of its 17 constituents trading in the green. The up move in the stocks is a reflection of the overall positive sentiment in the market.
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| Company | Quarterly Profit Growth | Total Income Growth |
|---|---|---|
| NSE | 8% | 22% |
| Angel One | - | 20% (client base growth) |
| 21% (average daily orders growth) | ||
| 27% (number of orders growth) | ||
| 24% (average daily turnover growth) | ||
| 204% (options premium turnover growth) |
Investor Takeaway
Investors should expect moderate gains in capital market shares following strong Q4 results and improved business outlook.
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