Street signs: Market fortunes, IFSC's grand welcome, corporate truth serum

Market fortunes: Short squeeze looms large

With most polls predicting over 350 seats for the Bharatiya Janata Party-led National Democratic Alliance government, the markets are likely to rejoice. Analysts expect the indices to receive a further boost due to short-covering by foreign portfolio investors (FPIs), triggered by the exit polls and encouraging consumer spending data from the US. “FPIs are at historically high index shorts at about $2.8 billion, which, in a way, serves as a hedge for their single stock futures longs of $4.7 billion. With the exit polls hinting at strong numbers for the ruling government, Monday and Tuesday should see index short covering by FPIs,” said a note by Nuvama Alternative & Quantitative Research.

IFSC’s grand welcome: Bridging borders in financial fortitude

With the government allowing direct listings at the International Financial Services Centre (IFSC), the regulator, the International Financial Services Centres Authority (IFSCA), is trying to woo companies from neighbouring countries. Sources said IFSCA is in talks with Sri Lanka, Nepal, Bangladesh, and Bhutan to facilitate the listing of high-quality companies at Gujarat International Finance Tec-City (GIFT City). Along with building a global investor base, IFSCA is also working on creating a lucrative investable universe of companies. Sources said the draft regulations for direct listings may be up for public consultation within a quarter, and the first listing may take place next year. Indian retail investors will not be allowed to invest in companies listed in the IFSC, and the route will only be open to institutional investors and overseas funds.

Corporate truth serum: Dispelling rumours, setting standards

India Inc enters a new era of rumour verification this week. The top 100 listed companies are now mandated to confirm, deny, or clarify information reported in the media. However, there are many ifs and buts for the mechanism to be triggered. The stages of discussion on a deal, price movement triggers, and the news reporting platform are some of the important considerations. For instance, companies will be required to comment on the ‘rumour’ only if it leads to a significant price movement (specified by the exchanges) or if the report provides specific details of the deal. All these conditions were introduced following discussions with the industry standards forum, which has representatives from three industry associations.