Nifty on thin line, Mazagon nears global docking point, Sebi's microscope

Walking a thin line: Will the Nifty steady or slip?

 

Last week, the market saw marked turbulence, driven by uncertainty over the global economic effects of tariffs. The Nifty 50 index swung nearly 1,200 points, or 5.5 per cent — dropping to a low of 21,744, rising to 22,924, and closing at 22,829. With only three trading days in the coming week, volatility may ease. “In the near term, we expect the 22,600–22,700 range to act as support for the Nifty, while 23,000–23,100 could serve as immediate resistance,” said Nandish Shah, senior derivatives and technical research analyst at HDFC Securities. A report from Bajaj Broking Research added, “We expect the index to trade within a 22,250–23,050 range during this shortened week. A sustained break above 23,050 could take the index to 23,550, last week’s high, while key support lies between 21,700 and 22,000, in line with Monday’s sharp decline.”

 

Shipshape & float-ready: Mazagon nears global docking point

 

Last week, the government sold a 3.5 per cent stake in Mazagon Dock Shipbuilders (MDSL) through an offer for sale (OFS). Though MDSL’s stock fell 5 per cent following the sale, analysts expect a favourable secondary effect. With the government still holding about 85 per cent of the company, MDSL remains excluded from global indices. But the OFS could change that. According to Brian Freitas, a New Zealand-based analyst with Periscope Analytics and independent contributor on Smartkarma, the increased free float could pave the way for global index inclusion. If MDSL is added to a major global index, passive funds tracking it would need to buy 7.46 million shares (worth ₹1,800 crore) by May 30, Freitas estimates. He also expects MDSL to be included in the Nifty Next 50 index by September.

 

Peeling back the label: Funds under regulatory microscope

 

The market regulator, the Securities and Exchange Board of India, has introduced steps to strengthen the ‘true-to-label’ principle in the mutual fund (MF) space, ensuring schemes are clearly defined by category. In contrast, the alternative investment fund (AIF) and portfolio management services (PMS) segments lack such rigorous oversight. MF industry leaders have raised concerns over widespread ‘mislabelling’ and are pushing for consistent standards across all investment products. They argue that investors are often misled, since assessing the performance of AIFs and PMS products can be difficult. “The actual investments in these funds may not match their stated objectives, which distorts reported returns and complicates comparisons for investors,” an industry executive observed.