Capital market-related stocks in focus; MOFSL, KFintech soar upto 12% today

Shares of capital market-related companies rallied up to 12 per cent on the National Stock Exchange (NSE) in Wednesday's intraday, amid heavy volumes on value buying. In comparison, the Nifty 50 today was up 0.14 per cent at 23,733.65 at 10:50 AM.

 

Motilal Oswal Financial Services (MOFSL), KFin Technologies (KFintech), 360 One Wam, Nuvama Wealth Management, Computer Age Management Services(CAMS), Angel One, Anand Rathi Wealth, and Central Depository Services (India) were up in the range of 3 per cent to 12 per cent. These stocks had corrected up to 40 per cent from their respective 52-week highs.

 

Given the low penetration of financial savings and the rising mutual fund folios, as well as demat accounts, analysts expect the growth trajectory of these market intermediaries to continue in the coming years. On the other side, broking industry will also see further consolidation in the hands of the larger players due to many reasons, including increasing compliance costs and norms. Hence, analysts believe the full-service brokerage houses benefit from this consolidation. 

 

 

FY26 Budget, meanwhile, marked a decisive change by offering tax breaks to individuals in the income class earning Rs 12 lakh annually. This will incentivise more people to adopt the new tax regime over old tax regime and thus, tax saving value proposition reduces materially for customers. For capital market players, higher disposable incomes could support systematic investment plan (SIP), future & options (F&O) and cash volumes, analysts at Elara Capital said.

 

The cut in income taxes, boost to global capability centers in tier II cities, scheme for procurement of pulses and higher interest exemption for senior citizens may stabilise the portfolios of MFI/NBFCs – through repayment of existing liabilities and/or demand for higher loans as disposable incomes rise, the brokerage firm said.

 

Among individual stocks, MOFSL share price zoomed 12 per cent to Rs 720.55 amid heavy volumes. In the last two days, the market price of MOFSL stock has rallied 15 per cent. Prior to that, it had tanked 41 per cent from its 52-week high level of Rs 1,063.40, touched on October 18, 2024.

 

MOFSL believes that the cumulative household savings, which was $14 trillion in the last quarter centurys will rise to nearly $126 trillion in the next 25 years. Importantly, there will be a higher share of financial savings, allocation to equities, exposure to alternates and greater concentration of wealth.

 

This, the brokerage firm believes, is really the mega trend that is driving multiple businesses of the Motilal Oswal group, whether it's the asset management business, wealth management business, private wealth business, alternate assets or capital markets.

 

Shares of KFintech, on the other hand, rallied 9 per cent to Rs 1,201, surging 13 per cent in two days. The stock had corrected 35 per cent from its 52-week high level of Rs 1,640, hit on December 30, 2024.

 

KFintech is the only investor and issuer solutions provider in India that offers services to asset managers such as mutual funds, alternative investment funds, wealth managers and pension as well as corporate issuers and is one of the three operating central record keeping agencies for the National Pension System in India.