BSE, CDSL stocks give multibagger returns in 6 months. Should we buy or keep?


Shares of Central Depository Services Limited (CDSL) jumped more than 5% in Monday’s first trades on the NSE, while shares of the Bombay Stock Exchange (BSE) traded more than 7% on the NSE. NSE.

In just 6 months, CDSL stocks gave multibagger returns as the stock jumped over 100% during the period. Meanwhile, BSE has also morphed into a multibagger action giving over 120% return over the past 6 months.

Brokerage firm ICICI Securities, in a recent memo, recommended an “Add” rating on BSE stock when it has a “Hold” position on CDSL. The brokerage collected the turnover from the National Stock Exchange (NSE) to determine the impact on turnover after the implementation of the 4th phase of the margin standard. He said the recently implemented full margin standard does not have a major impact on stocks unlike commodities.

NSE’s total revenue had only a modest impact due to these margin standards. Whereas, MCX Futures ADTV (Average Daily Trading Volume) decreased from fro, Rs284bn to Q1FY22 to ??231 billion as of Sep 21, however, the brokerage has a buy recommendation on MCX shares.

CDSL is one of two depositories in India and the only one listed in the country, the other being National Securities Depository Limited (NSDL). It facilitates the holding and trading of securities in electronic form and facilitates the settlement of transactions on the stock exchanges. Whereas BSE is the oldest and the first Indian stock index launched in the country.

Amid new investors entering Indian stock markets and increasing mat account openings, shares of brokerage firms have risen significantly this year due to improved business prospects.

The opinions and recommendations expressed above are those of individual analysts or brokerage firms, not Mint.

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