Market Bizzz

On June 28, 2023, L&T Finance Holdings (L&TFH) and Manappuram Finance stocks were placed under the F&O ban. However, they were still available for trading in the cash market. The ban is imposed when the open interest on a stock exceeds 95% of the market-wide position limits, and is lifted when the open interest falls below 80%. These bans do not affect traders who trade in indices. The stocks were banned due to their high open interest, with L&TFH experiencing a significant increase from the previous session.

​It is not about edtech I think you are going to see this across and the fact that everyone was pushing to become unicorn or decacorn or whatever, in a market where it is very hard to generate revenue.

Gold prices remained steady on Tuesday, slightly above their three-month low, while the US dollar gained strength, with traders opting to hedge against political chaos in Russia and the Federal Reserve’s hawkish outlook. Spot gold traded at $1,923.94 per ounce, while US gold futures remained flat at $1,933.90. Safe-haven investments such as gold and the dollar surged following the aborted mutiny in Russia over the past weekend. Economic data, rate-hike trajectory from Fed Chair Jerome Powell, and the quarterly refresh of JPMorgan’s nearly $16 billion Hedged Equity Fund’s options positions are being observed by the market closely.

Asian stock markets were hesitant on Tuesday as investors awaited signals on the interest rate outlook. They were also concerned about potential risks to China and geopolitical turmoil following an aborted mutiny in Russia. MSCI’s Asia Pacific stocks minus Japan index gained 0.08%, while Japan’s benchmark Nikkei average fell by as much as 1%. S&P Global has reduced China’s economic growth forecast to 5.2% from 5.5% for 2023, representing the first time a major credit ratings agency has cut China’s forecast this year, further maligning China’s uneven recovery from the coronavirus pandemic.

The US dollar was steady against major currencies as traders looked ahead to US data that may determine the timing of interest rate hikes. The crisis in Russia had pushed the greenback to a 15-month high against the rouble, whilst U.S. data released this week includes new orders for durable goods, housing figures, and consumer surveys from The Conference Board and University of Michigan. Commenting on the expected US dollar performance, Masafumi Yamamoto, chief currency strategist at Mizuho Securities, said, “If the US economic data comes out on the strong side, then further pricing in for the two rate hikes will push up the dollar.

The Nasdaq 100 is heading for its best H1 ever, with a surge of 36% so far this year. But Wall Street is concerned that the rally may be derailed by the Federal Reserve tightening its policy. Despite recession fears and bank failures, investors have remained optimistic as the US economy shows resilience and the earnings outlook improves. However, analysts warn that the rally in tech stocks appears overblown due to rich valuations and only a few high-flying companies such as Apple, Microsoft and Nvidia. Historically, a strong first-half for the stock market has been a good omen for the rest of the year.

Indian assets are more promising than those of Indonesia, thanks to their higher compensation for risk, according to data compiled by Bloomberg. The Indian rupee offers a carry-to-risk ratio of 2.8 compared with just 0.5 for Indonesia’s rupiah, while the Indian central bank’s intervention and the highest bond yields among major Asian nations are burnishing the appeal of its assets. Finally, foreign funds are locking in high yields in Indian debt, with the country’s one-year implied volatility slumping to a 10-year low of 5.21%. Experts therefore suggest investors are better off opting for Indian assets.