Berliner Boersenzeitung - Capital-markets shares rally as Motilal Oswal and Angel One lead gains

Capital market-related stocks today Shares of capital market-related companies including stock broking and allied services, exchange and data platforms and asset management companies (AMCs) were in focus and rallied up to 7 per cent on the National Stock Exchange (NSE) in Tuesday’s intraday deals. The buying at these counters can be attributed to healthy Q2 earnings reported so far by related companies.

Last month, the capital market regulator Securities and Exchange Board of India (SEBI) revised the Closing Auction Session (CAS) framework, addressing central concerns surrounding the derivatives settlement. The regulator changed trading timings and the methodology for determining settlement prices of stock and index derivatives contracts. Share prices of Motilal Oswal Financial Services (MOFSL), Angel One, 360 ONE WAM and Computer Age Management Services (CAMS) rallied in the range of 5-7 per cent. Central Depository Services (India) Limited (CDSL), Nippon Life India Asset Management, KFIN Technologies and Billionbrains Garage Ventures, the parent of stock broking platform Groww, were up between 3-4 per cent.

Indian Energy Exchange (IEX), HDFC Asset Management Company, Multi Commodity Exchange of India (MCX) and Bombay Stock Exchange (BSE) share prices were up 2 per cent each. At 10:18 AM on Tuesday, the Nifty Capital Markets index was up 2. 43 per cent, compared to a 0. 83 per cent rise in the Nifty 50.

The capital markets index rallied 3 per cent in intraday deals. What’s driving capital market-related stocks? Among the individual stocks, MOFSL rallied 7 per cent to ₹1,031.75 on the NSE in intraday deals. In the past two trading days, the stock advanced sharply 10 per cent. For Q2FY27, MOFSL reported 29 per cent year-on-year (YoY) growth in operating profit after tax (PAT), led by 69 per cent growth in asset management. Asset Management is now MOFLS’ largest profit pool, and two-thirds of its revenue is recurring, which makes the company's earnings more resilient through market cycles, the management said.

ALSO READ: Stock Market LIVE: Sensex gains 700 pts, Nifty tops 23,600; FMCG shares shine “The second quarter reinforced the resilience of our client franchise despite significant changes in India’s market structure including revised bank funding norms and introduction of the CAS in cash equities. While these changes temporarily impacted broking activity, client engagement recovered steadily, with our average daily orders reaching 5. 8 million in September 2026, approaching pre-CAS levels. More importantly participation deepened as our average client funding book reached a record high of ₹7,450 crore, growing by 40.

5 per cent YoY,” Angel One said in a press release. CDSL remains a central participant in India's capital market infrastructure ecosystem, benefiting from rising demat penetration, growing retail participation, and increasing digitization of financial services. Meanwhile, SEBI changed the methodology to compute the settlement price of index derivatives on expiry day, as proposed in the September 2026 consultation paper, to the volume-weighted average price (VWAP), effective December 7, 2026. This should reduce expiry-day volatility under the CAS, benefiting brokers whose orders remain below pre-CAS levels.

With premium turnover for exchanges back to pre-CAS levels, earnings upside may be limited, analysts at Jefferies said in a report. From December 7, CAS will run between 3:30 pm and 3:40 pm, while derivatives trading will continue until 3:45 pm. Expiry settlement for index and stock derivatives will remain based on the final 30-minute VWAP of the underlying constituents, reducing dependence on a single auction-discovered closing price. Changes governing the transfer of unexecuted limit and iceberg orders into CAS will take effect from February 8, 2027, as reported by Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a SEBI-registered Research Analyst firm.

(A.Lehmann--BBZ)