Equity analysts and dealers are in the firing line with the stock market in the bear grip for nearly eight months. A number of domestic broking houses which in the last two years had aggressively expanded their retail and servicing network are now shrinking to stay alive. For example: One local brokerage that had expanded aggressively its retail business has sacked several staffers at its northern and eastern Indian operations. Another example is of a domestic broking house which has not only gone for a cut in pay packets for its top deck, it has also put on hold new recruits and terminated the services of some dealers with its proprietary trading desk.
Some broking houses are also adopting innovative strategies of allowing their ex-dealers and analysts to use the broking house’s brand name to get new jobs even after they have been sacked. Most broking houses are saying that like every year a part of its staff were asked to go because of poor performance. Also, some brokerage which has seen large number of resignations after the yearly bonuses were distributed in April, have intentionally not recruited to fill those vacancies.
Location wise, dealers and equity sales people located in Mumbai are least affected compared to those outside the financial capital equity sales teams outside of Mumbai are the worst affected. Some of the broking houses which had opened offices outside of Mumbai, have closed operations.