Brokerage stocks have outperformed the markets overall in the last month or so, with the stock prices of Edelweiss, Motilal, JM Financial, etc, up anywhere between 20 per cent and 54 per cent. This follows the bullish report in September by Espirito Santo which indicated that the worst may be over for the broking sector. Amit Majumdar, executive director and chief strategy officer, Angel Broking, told NDTV Profit that the current valuations of these stocks reflect too much bearishness. Mr. Majumdar agrees that broking yields have declined, but retail participation in the markets have picked up.
