Posted on March 28, 2025, by Niftynews
Central Depository Services Limited (CDSL shares), India’s leading depository, has experienced an impressive 6% rise in its stock price recently, marking the largest intraday gain since March 18, 2025. The CDSL stock surged by 6.07% on March 28, 2025, reaching ₹1,529 per share at its peak. Although it trimmed some gains, the stock remained up 5.8%, trading at ₹1,256.8 per share as of 11:10 AM IST.
This recent surge is part of a broader recovery for CDSL, which had fallen to ₹1,047 just ten trading sessions ago. The company’s shares have now risen 18% since March 17, 2025, a remarkable comeback driven by increased trading volumes. The stock is now trading 2.7 times its 30-day average volume, according to Bloomberg data.
Why CDSL Shares is Gaining Momentum
The surge in CDSL shares is fueled by several key factors that have contributed to its bullish momentum:
- Strong Trading Volumes: One of the primary reasons for the CDSL shares rally is the surge in trading volumes. High volume often indicates strong investor interest and could signal further price appreciation in the future. The stock crossed its 50-day moving average during this rise, a key technical indicator that suggests bullish potential.
- Relative Strength Index (RSI): The RSI of CDSL currently stands at 56, indicating that the stock is approaching the neutral territory. Investors often watch RSI closely to gauge whether the stock is overbought or oversold. The relatively stable RSI suggests room for further upward movement.
- BSE Rally: On the same day, shares of BSE (Bombay Stock Exchange), which owns CDSL, also saw a rise. This increase was largely driven by NSE’s decision to defer its plan to change the expiration date of its derivatives contracts, further bolstering market sentiment.
Financial Concerns Despite Momentum
While the stock is experiencing a strong rally, CDSL’s recent financial results have shown weakness. The company reported a 19.7% decline in quarter-on-quarter profit, with a drop from ₹162 crore in Q2FY25 to ₹130.1 crore in Q3FY25. This was coupled with a 13.7% drop in revenue from operations, from ₹322.3 crore to ₹278.1 crore in the same period.
The company’s EBITDA margin also contracted 420 basis points, from 62% to 57.8%. Despite these financial setbacks, the market seems to remain optimistic about the stock’s potential for future growth. The recent stock rally could be attributed to investors looking beyond short-term challenges and focusing on the long-term prospects of CDSL.
The Compliance Issue: SEBI Warning
Another factor to consider in CDSL’s performance is a recent warning issued by the Securities and Exchange Board of India (SEBI). An inspection was conducted from July 1, 2023, to June 30, 2024, and some compliance issues with SEBI regulations were observed. However, CDSL reassured investors that there were no financial implications arising from the warning, and the company is taking steps to resolve the concerns.
CDSL: A Look Ahead
As CDSL shares continues its bullish trajectory, it is important to consider both the positive momentum in the market and the financial challenges the company faces. The 18% rally in the last 10 days has sparked optimism among investors, but the weak Q3 results and compliance issues serve as reminders that caution is warranted.
For now, CDSL stock is benefiting from increased trading volumes, positive sentiment from BSE, and the company’s strong position in the market. However, the upcoming quarterly results and any regulatory developments will be crucial in determining the future direction of the stock.
Conclusion
The 6% surge in CDSL shares on high trading volumes reflects investor confidence in the company, despite the recent financial downturn. CDSL stock has risen 18% since mid-March, fueled by strong market momentum and technical indicators. While the company is dealing with challenges, including a decline in profits and SEBI’s compliance warning, the positive stock price movement signals that investors remain hopeful about CDSL’s long-term potential.
As always, investors should monitor the company’s future performance closely, keeping an eye on both market trends and internal developments. The stock’s recent performance suggests that CDSL could continue to experience bullish sentiment, provided it can navigate its financial challenges effectively.
