Street Signs: Nifty hot streak meets Fed test; cash turnover hits 6-mth low

Nifty's winning run faces Fed test, cash turnover slides as big caps dominate, and Sebi widens crackdown on finfluencer ads with Meta and Google compliance

Nifty’s hot streak faces Fed reality 

The National Stock Exchange Nifty ended last week with its eighth straight session of gains, its longest run in a year. The 50-share benchmark index also rose 1.5 per cent, its best weekly advance this quarter. Investors will be watching the US Federal Reserve’s monetary policy announcement this week. Hopes of a rate cut stoked last week’s rally. Market analysts, however, warn that regardless of the outcome, the effect of a US policy move may fade within a few sessions. “Steady domestic institutional flows in recent months have allowed the markets to shrug off negative news quickly. And renewed hopes of a trade deal and stronger earnings in the second half of the financial year are giving investors some cause for optimism,” said Deepak Jasani, former head of retail research at HDFC Securities. 

Top heavy, bottom light: Big caps rule 

While the derivatives segment picked up in August, equity cash average daily turnover (ADT) slipped to a six-month low of ₹93,545 crore, down 2 per cent month-on-month (M-o-M) and 26 per cent year-on-year. The National Stock Exchange’s Market Pulse showed that ADT for exchange-traded funds fell 8 per cent M-o-M. The average trade size also dropped to a four-month low of ₹29,742, pointing to weaker participation. Individual investor turnover fell 26.2 per cent M-o-M, with their share sinking to a six-month low of 32 per cent. In earlier months, derivatives activity had cooled after the Securities and Exchange Board of India introduced measures to rein in retail speculation in futures and options. In August, turnover concentration in the cash market’s top decile rose to 76.4 per cent of total activity, underscoring the tilt towards heavyweight market-capitalisation companies.

 

Meta, now Google: Ads in Sebi’s crosshairs

 

After Meta, Google may also mandate registration verification for investment-related advertisements as the Securities and Exchange Board of India (Sebi) steps up its action against finfluencers. Sebi Whole-Time Member Kamlesh Chandra Varshney said that the regulator has reached an in-principle agreement with Google on advertisements. Varshney said that any advertisement on Meta is verified with Sebi and goes through two-factor authentication. For any investment advice or stock recommendation, Sebi requires registration as an investment advisor or research analyst. Sebi officials said that more than 80,000 content links and websites have been taken down for violating the watchdog’s rules. These alerts, generated through artificial intelligence, are flagged to social media platforms, which then remove the content immediately.