(Bloomberg) — Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at:
Good morning, this is Chiranjivi Chakraborty, an equities reporter in Mumbai. There’s not much to cheer for equity bulls on a rainy Thursday morning in the city. Nifty futures are trading steady, and Asian markets haven’t managed to sustain Wednesday’s rally. The focus is shifting to the weekly expiry of Nifty options, especially with a long weekend ahead and a highly anticipated meeting between Donald Trump and Vladimir Putin. Meanwhile, foreign funds seem to be toning down their bearish bets. This, combined with still hopeful retail investors and local institutions sets the stage for a surprise move in the days ahead.
Cautious optimism ahead of the long weekend
Odds favor the Nifty 50 Index breaking its six-week losing streak — the longest since 2020. Despite a dip on Tuesday, the benchmark is up for the week. With Nifty options expiring and an extended weekend ahead, some short covering could give the market an extra lift. Local traders and global funds may also keep positions lighter than usual ahead of the upcoming US-Russia summit on the Ukraine war, mindful of the past market jolts from the unpredictable Donald Trump.
REITs quietly building momentum
While equity markets wobble, India’s listed real estate investment trusts are on a tear. Driven by the boom in global capability centers and steady demand for high-quality office and retail space, the four listed REITs distributed 15 billion rupees ($172 million) to investors in the June quarter, up 13% from last year, according to the Indian REITs association. The sector’s stability and income potential are making REITs a regular feature in investment portfolios.
Derivatives traders switching lanes?
Another corner of the market is drawing increased interest from traders. With derivatives trading volumes falling, margin trading exposure — or leveraged bets — in the cash market is up nearly 30% since April to 911 billion rupees, according to data from the National Stock Exchange. The surge suggests that some options traders may have switched tracks due to stricter regulations in the derivatives segment since November. While the jump hasn’t yet shown up in cash market turnover, brokers are benefiting from the higher commissions such trades generate.
Three great reads from Bloomberg today:
Over in bond land, benchmark 10-year yields have burst past the 6.5% mark for the first time since April, climbing about 15 basis points since the RBI dashed rate-cut hopes. Big buyers are staying away, waiting to see if fiscal measures can soften the blow from steep US tariffs. And just to keep things interesting, a fat-finger trade briefly sent yields tumbling Wednesday morning, only for them to snap right back up.
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–With assistance from Kartik Goyal and Savio Shetty.
(Corrects year in second paragraph.)
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