Broking firms including Zerodha, Groww and Angel One continued to gain market share in January amid record futures & options (F&O) volumes. ICICI Securities and Upstox, on the other hand, saw marginal declines in market share in the month gone by, data showed.
The combined market share of the three brokers in NSE’s active clients stood at 47 per cent in January against 45 per cent in December and 44 per cent in November 2022. The market share of the three broking firms stood at 38 per cent in April 2022, CLSA data suggested.
The three broking firms, in fact, have gained 180-430 basis points market share since April 2022 levels, said CLSA in note while noting that derivatives volumes are up 11 times versus pre-Covid levels, even as cash volume is up by a mere 30 per cent during the same period.
This is against ICICI Securities, whose share in NSE active clients has been declining since July 2022 and its market share is now down 73 basis points from April 2022 levels, CLSA said.
“Discount brokers continue to be at an advantage given that F&O volumes are scaling new heights while cash volumes have been range bound for the past three years. F&O volumes/number of derivative contracts were up 3 per cent and 5 per cent MoM for January 2023, while cash volumes were at the lower end of the Rs 10-17 lakh crore range that has been maintained since the onset of Covid,” CLSA said.
The market share of Nithin Kamath-led Zerodha stood at 19 per cent in January (in terms of NSE active clients) against 18.7 per cent in December. Upstox’s share fell to 9.9 per cent from 10.9 per cent. Angel One’s share increased to 12.3 per cent from 12 per cent. ICICI Securities’ declined marginally to 7.5 per cent from 7.6 per cent. For Groww, the market share increased to 15.2 per cent from 14.6 per cent.
January was peak for NSE derivative turnover at Rs 42,45,19,372.45 crore (Rs 4,245 lakh crore), which is 2 per cent higher than the previous peak of Rs 41,77,05,279.77 crore (Rs 4,177 lakh crore) in December 2022, data available with NSE suggested. New demat account additions stood stable at about Rs 22 lakh while the total demat accounts stood at 11.05 crore, as per CLSA.
The advantage to discount brokers continues, said CLSA, with F&O volumes achieving new heights while cash volumes remain range bound.
“The number of derivative contracts was up 5 per cent MoM, driving the bulk of the volume growth, while the Nifty and Bank Nifty saw choppy/declining trends in the past month,” CLSA said.
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