Two Broking Stocks Setting Up Well on Charts?

One decadal theme that’s likely to persist for long, and is really a no-brainer, is ‘capital market’ stocks. India’s demat account penetration, for instance, stands at a modest 12% compared to 15% for China and 62% in the USA. So there’s quite some leeway for this sector.

Then… the mutual fund AUM-to-GDP ratio, which is a key indicator of market maturity, is just 17% — again, far below the global average of 65%.

Also note this: Over 10 crore people expected to join the workforce and an additional 10 crore households projected to ascend to the middle-income class. These people may increase their participation in the capital market, either directly or through mutual funds — thus directly benefitting the broking & wealth management industry. Furthermore, as per a report by Motilal Oswal, both high-net-worth individual segment as well as ultra-high-net-worth individual segment are registering a CAGR of 12%, a trend likely to sustain and fuel market growth.

Not to mention the rise of digitalization through UPI & e-KYC — both of which may continue to facilitate increased participation of Indian households in capital markets.

With these structural tailwinds in place, here are 2 broking industry stocks that appear to be well-positioned for growth: