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Not only key stock market indices but even listed brokerages' stocks have witnessed a rally.

Accordingly, the rising number of investors along with the exponential growth in market capitalisation levels has stroked-up stock prices of listed brokerages firms.

This despite heavy competition from new age online brokerages platforms.

In terms of one-year return, IIFL Finance's stocks rose at 265.37 per cent, Angel's stocks grew by 262 per cent, MOFSL at 68.81 per cent, Geojit at 44.59 per cent and JM Financial at 8.04 per cent.

"Brokerage stocks have seen their stock prices rise as their revenues and profits kept growing over the last few quarters," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"They benefitted out of rising base of new clients who contributed to higher volumes on the bourses and consequently higher revenues for brokers."

According to Vinod Nair, Head of Research at Geojit Financial Services: "Substantial rise in domestic investors, both short and long terms, has improved the business growth and outlook of brokerage firms."

"This is also supported by the buoyant market leading to a strong upside in AUM under management multiplying on a yoy basis."

In addition, Gaurav Garg, Head of Research CapitalVia Global Research, said: "So the demat account opening pace has increased over past two years post pandemic and India has seen rise of around three crore demat accounts over past two years."

"The major chunk of these new accounts has been captured by discount brokers but traditional brokers have also evolved and they have captured a major chunk of pie, Angel, ICICI and HDFC Securities are the major ones."

In addition, he said that since the base has increased we have seen the participation from the retail investors, their stock prices have also shown tremendous growth and the future also looks bright as the current prediction in India.

"Its that on five per cent which is less then the penetration which is in China of over 13 per cent and UAS which is about 32 per cent."