Street signs: Bank-backed brokers may regain edge, IPO pipeline stalls

Reliance Industries, the country’s most valuable company, saw its market capitalisation fall nearly 5 per cent on Friday — its steepest single-day decline in almost two years. Its valuation now stands at ₹18.24 trillion ($192 billion). With this, India no longer has a company in the $200-billion market-cap club, as both Reliance Industries and Tata Consultancy Services have slipped below the threshold. The latest selloff, triggered by escalating tensions in West Asia, has also thinned India’s presence in the $100-billion club. Apart from Reliance, only HDFC Bank ($122 billion) and Bharti Airtel ($113 billion) remain above the mark. State Bank of India, ICICI Bank, and Tata Consultancy Services have dropped out, leaving the global $100-billion club with around 75 companies.

Bank-backed brokers may regain edge

Bank-backed brokerages, which ceded ground to discount platforms during the post-pandemic retail trading boom, may be poised for a comeback. Recent regulatory tightening in derivatives trading, along with the upcoming hike in securities transaction tax (STT) from April 1, is expected to weigh on the high-volume, low-margin model of discount brokers. Industry chatter suggests Zerodha has already doubled brokerage fees for select intraday derivatives trades to ₹40 per order, with peers likely to follow. Market participants say the shift could mark a turning point. “We may see the dominance of discount brokers reduce. They will have to diversify revenue streams and reduce dependence on futures and options,” said a senior executive at a bank-backed brokerage.

IPO pipeline stalls amid volatility