In the last 6 sessions itself, the shares of Central Depository Service (India) Limited ie CDSL have made their investors rich. One such stock is also of Computer Age Management Service i.e. CAMS, which has given 20 percent return to its investors in just three days, while CDSL has given 35 percent return in the last 6 sessions.
On Thursday, the shares of CDSL rose 4.5 percent to Rs 1363, while CAMS was also up 1 percent at Rs 3495 in early trade. Capital markets witnessed unprecedented monthly growth of 2.4 million new retail investors in the last four months. And this is the biggest reason for the surge of these two stocks, as there has been an increase in Demat accounts due to the arrival of new investors during the pandemic.
According to HDFC Securities, increased retail activity and market all-time highs have supported higher volumes, leading to growth in broking revenue. Domestic brokerage and research firm HDFC Securities expects strength for AMC, as active equities saw a net inflow of Rs 222 billion during the first quarter.
First depository to open over 4 crore active Demat accounts
CDSL recently became the first depository to open more than four crore active Demat accounts. Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “July and August are the busiest months for the IPO market. During this time new depository accounts may open for these IPOs. This technically means that CDSL’s business will also boom. “
Shares rose about 250 per cent in one year
CDSL is one of the two depositories in India and the only listed one in the country, the other being NSDL. It benefits from many charges like transaction, IPO/corporate activity, online data charges. Its shares have gained nearly 250 per cent in the past year. CAMS is a technology-driven financial infrastructure and service provider for Mutual Funds (AMCs) and other financial institutions. It is a transfer agent of MFs with an overall market share of around 70% on the basis of Average Assets Under Management (AAUM) managed by its clients.
