Gift Nifty: Stock markets are expected to open Monday’s trading session on a negative note, influenced by a somber sentiment in global markets and a potential technical correction following recent substantial gains.
As of 07:00 AM, Gift Nifty futures were priced at approximately 23,428, suggesting a probable gap-down opening of more than 75 points for the Nifty 50 index.
Additionally, news of suspected irregularities in investment activities involving fund managers at Quant Mutual Fund is expected to dampen trading sentiment. According to reports, officials from Sebi conducted searches at Quant MF’s offices last week. Quant MF manages approximately Rs 80,000 crore in assets under management (AUM).
Global Mood
This morning, markets across the Asia-Pacific region saw widespread declines. Taiwan dropped by more than 1%, the Kospi by 0.6%, and Japan’s Nikkei remained stable. In Australia, both the ASX 200 and All Ordinaries indices fell by 0.6% each.
On Friday, the US stock market closed with a mixed performance as profit-taking affected technology shares, particularly Nvidia. The Dow Jones index remained unchanged, while both the S&P 500 and NASDAQ declined by 0.2% each.
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The US 10-year bond yield held steady despite reports indicating stronger-than-expected business activity in the US and subdued inflation. The bond yield was quoted at 4.257 percent. In commodity markets, Gold futures declined to $2,335, while Brent Crude Oil remained around $85 per barrel.
Fund flow action
On June 21, Foreign Institutional Investors (FIIs) sold stocks amounting to Rs 1,790 crore, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 1,237 crore.
In the derivatives segment, FIIs were net buyers of index futures, totaling Rs 1,526 crore. Specifically, FIIs purchased Nifty futures valued at Rs 498.28 crore (with Open Interest increasing by 8,355 contracts) but sold Bank Nifty futures worth Rs 654.07 crore (with Open Interest decreasing by 8,466 contracts).
Consequently, the ratio of FIIs’ long positions to short positions in index futures increased to 1.32, reflecting 56.96% long positions compared to 43.04% short positions.
Conversely, DIIs (Domestic Institutional Investors) and retail investors increased their positions on the short side in index futures to 58.97% and 53.80%, respectively.
Stocks in F and O ban period
On Monday, Balrampur Chini, Chambal Fertilizers, GNFC, Granules India, Hindustan Aeronautics (HAL), Hindustan Copper, Indus Towers, and Piramal Enterprises are among the eight stocks in the Futures & Options (F&O) ban period. A stock enters the F&O ban period when its open interest (OI) surpasses 95% of the market-wide position limits (MWPL). During this period, traders are only allowed to square off existing positions in these stocks; initiating new positions would result in penalties imposed by the exchange.
New Listing
GP Eco Solutions is set to debut on the SME platform on Monday. The IPO garnered significant demand, with subscriptions exceeding 850 times the offering size. Based on Grey Market Premium, the stock is expected to list with a premium of more than 100 percent.
Primary Market Update
Today, four SME IPOs will begin accepting subscriptions: Mason Infratech, Sylvan Plyboard (India), Visaman Global Sales, and Shivalic Power Control.
In addition, two other SME IPOs are currently open for subscription: Winny Immigration and Education Services, which concludes today, and Medicamen Organics, concluding its public share sale tomorrow.
