Brokerage firm JM Financial downgraded shares of Central Depository Services Ltd. (CDSL) after its September quarter results. The stock is down in fifth out of the last six trading sessions today.

JM Financial downgraded the stock to "reduce" from its earlier rating of "hold". CDSL's price target was left unchanged by JM Financial at ₹1,500 per share, which implies a potential downside of 6% from Monday's closing price.

The brokerage believes that with its dominant position in the depository business, CDSL is poised for growth, capitalizing on the rising activity in the Indian capital markets.

However, continued reduction in turnover volumes, might weigh on CDSL's earnings going forward, according to JM Financial, who wrote in its note that the Average Daily Turnover across BSE and NSE

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