Brokerages’ revenue growth to moderate

NEW DELHI: After touching a record high in 2020-21, the brokerage industry's revenue growth will moderate in 2021-22, a domestic ratings agency said.

High interest shown by both foreign portfolio investors and retail investors in the markets will lead the domestic broking industry's revenue to clock a 3035% growth to Rs 27,50028,500 crore in 2020-21, ICRA said in a report.

It is expected to moderate to 7-8% growth in 2021-22 to Rs 29,500-30,500 crore, it added. In comments that come amid concerns over a disconnect between the surging markets and the contracting economy, the agency said domestic capital markets seem to have "bucked the overall economic outlook and pandemic blues".

The market traction has been supported by strong FPI investment inflows, optimism related to a recovery after the graded reopening of the economy, and steady retail investor momentum, it said.

Vaccines, lower interest rates and lower yields on bonds also aided it, the rating agency added.