Street signs: Trading hour extension, markets down the chimney, and more

Existing infra not conducive to trading hour extension

National Stock Exchange of India (NSE) Managing Director and Chief Executive Officer Ashishkumar Chauhan batted for extending trading hours at a pre-Budget round table recently. However, officials at the Securities and Exchange Board of India believe the infrastructure is not ready yet. “There are some challenges in transitioning to a T+1 (trade plus one day) mechanism with respect to foreign exchange bookings. These bottlenecks have to be removed for longer trading hours to start rolling,” informed a source. To smoothen the transition to a T+1 settlement, the NSE has extended the cut-off time for the allocation of trades by an hour to 8 pm effective today.

Mkts down the chimney: Santa won’t come bearing gifts

The last week of this month is usually a good time for markets as it usually gains in the last five trading days of December and the first two trading days of the New Year. But it is unlikely to happen this year as Covid worries have remerged and the latest US economic data has given a stronger case of further rate hikes by the Federal Reserve. “The last three weeks of the slide have changed market structure, and indications are pointing towards the decline to extend further. On the index front, the Nifty has the next crucial support at 17,400 levels, while 18,200-18,500 would act as hurdles in case of a rebound,” said Ajit Mishra, vice-president-technical research, Religare Broking.

Radiant’s grey market premium goes off-colour

The grey market premium of Radiant Cash Management Services has shrunk to a modest 10 per cent apiece. The tepid listings of Landmark Cars, Abans Holdings, and Sula Vineyards have hit the prospects of Radiant which is concluding its initial public offering next week. The issue has got a 4 per cent subscription so far. “Listings last week were below expectations. Heightened volatility is also weighing on investor minds,” observed a primary market expert.