Hyderabad

Consolidation likely in stock broking sector

A top-level executive of a leading stock broking firm has underscored the need for investors to do business with trusted brands with strong governance practices in the backdrop of the Karvy crisis.

“They must stop chasing only free/low-brokerage charges, geographical convenience and rely on established institutions who have been around for decades,” senior vice-president (Head of Fundamental Research) of Kotak Securities Rusmik Oza said here.

With the Karvy episode impacting the investor confidence, “consolidation in the broking industry is likely to get expedited,” he said during a media interaction. For retail investors, Kotak Securities is offering free brokerage upto 180 days, waiver on account opening fees and on DP AMC charges.

Making a presentation on the market outlook, Mr.Oza said for the calendar year 2020 “we prefer sectors that have high earnings visibility, good return ratios and trading at or below their 10-year average valuations.” Based on these parameters, the focus can be on corporate banks, large NBFCs, oil and gas, capital goods, construction, healthcare and agrochemicals.

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Printable version | Feb 24, 2020 12:50:36 AM | https://www.thehindu.com/news/cities/Hyderabad/consolidation-likely-in-stock-broking-sector/article30280258.ece

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