Brokerage stocks under fire (The Hindu Business Line 13th Feb 2008)Stocks of brokerage houses have been bearing the brunt of the selling pressure in the recent correction. This is despite most brokerages staging an impressive third quarter performance. Stock prices of most broking companies, on an average, have fallen by about 41 per cent in the last one-month vis-À-vis a 20 per cent fall in Sensex. The fall, however, has been more pronounced (about 30-44 per cent) for companies with pure broking exposure such as Religare, Geojit Financial Services, Emkay Share and Stock Brokers and India Infoline. The fall in prices of banks such as ICICI Bank and Kotak Mahindra with broking exposure got arrested at about 20-33 per cent. With their revenues pegged directly to the fortunes of the equity markets, companies in the broking space may be up for tough times ahead, with dwindling intra-day volumes and a general loss in risk-appetite among retail investors. Fading investor interest in the IPO ...
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