India's capital markets sector experienced a remarkable surge in FY26, with the Nifty Capital Markets Index climbing 35%. This performance positioned it as the second-best sector, just behind the Nifty PSU Bank Index, which soared 44%. The growth reflects increased investor activity and engagement across exchanges, brokerages, and wealth management firms.
At the forefront of this rally was the Multi Commodity Exchange of India (MCX), whose shares skyrocketed by 143% during the fiscal year. This impressive gain more than doubled investor wealth in less than 12 months. The exchange's robust financial results bolstered its stock performance, with third-quarter revenue from operations reaching approximately Rs 697 crore, marking a 115% increase year-on-year. Net profit also saw a significant rise, jumping over 150% to Rs 401 crore compared to the same period last year.
Other companies in the capital markets sector also posted strong returns. Anand Rathi Wealth, BSE, and Aditya Birla Sun Life AMC saw their stocks rally between 50% and 65%, driven by increased investor inflows and the expansion of wealth management services. Meanwhile, the online investment platform Groww recorded a 55% rise in its stock price since its listing in November last year, although it is not yet part of the Nifty Capital Markets Index.
Several other financial services firms reported double-digit gains during FY26, including HDFC Asset Management Company, Motilal Oswal Financial Services, and 360 ONE WAM. These gains underscore the sustained investor interest in companies tied to the growing financialisation of savings in India.
Among major listed online brokerage firms, Groww holds the largest market capitalisation at approximately Rs 98,500 crore. It is followed by Motilal Oswal Financial Services, valued at about Rs 43,000 crore, while Anand Rathi Wealth and Angel One trail with market caps of around Rs 26,200 crore and Rs 20,500 crore, respectively.
Investor Participation and Analyst Sentiment
The rally has also seen increased participation from institutional investors. Foreign institutional investors and mutual funds have raised their stakes in several capital market companies during the December quarter compared to the previous quarter. Notable companies include Anand Rathi Wealth, BSE, Nippon Life India Asset Management, Central Depository Services (India), and Nuvama Wealth Management.
Analyst sentiment remains optimistic for several sector players. The consensus recommendation for the Multi Commodity Exchange of India from 11 analysts is a “BUY, ” with a potential upside of approximately 10.6% from current levels. Angel One also holds a “BUY” rating from 11 analysts, with an estimated upside of around 38.1%. Meanwhile, Anand Rathi Wealth has a “HOLD” recommendation from two analysts, suggesting a modest upside of about 1.9%.
