Street Signs: Blow for unlisted trading platforms, LIC boost for REIT mkt

Momentum ignition: 19 stocks that just shifted the Nifty 200 gear

 

NSE Indices, a subsidiary of the National Stock Exchange, has announced 19 changes to the Nifty 200 Momentum 30 Index, which tracks the top 30 companies from the Nifty 200 based on their normalised momentum score (NMS). The NMS, a technical indicator, measures a stock’s relative strength and potential direction by analysing its recent price performance. It takes into account six-month and 12-month returns, adjusted for volatility. New additions to the index include Zomato, Tech Mahindra, HCLTech, and Infosys, while NTPC, Bajaj Auto, Adani Ports and Special Economic Zone, and REC have been removed. Brian Freitas, a New Zealand-based analyst with Periscope Analytics and independent insight provider for Smartkarma, noted that the rebalancing — effective December 30 — will lead to a one-way trade of Rs 7,270 crore. “The inclusions have outperformed the deletions since the start of July, and this trend has continued over the past few months, even as the list of stocks remained relatively unchanged. There may be further upside as we approach year-end and the changes take effect,” he observed.

 

The unlisted free-for-all is over: Sebi draws its line

 

The Securities and Exchange Board of India’s recent warning against trading in unlisted securities has sent ripples through platforms facilitating such transactions. Industry insiders predict a decline in trading volumes, ranging from 30 per cent to 40 per cent, due to this regulatory diktat. The warning highlights that investors using unauthorised platforms — many of which have mushroomed in recent years — are at risk of losing crucial protections, including grievance redress and dispute resolution services. This caution comes at a time when interest in the unlisted market is growing, with investors profiting from purchasing shares of companies before their initial public offerings and selling them once listed.

 

LIC lights the fuse: Could this spark a Reit market explosion?

 

Life Insurance Corporation (LIC) of India has made its first investment in a real estate investment trust (Reit), marking a milestone more than five years after the product’s launch in India. The insurance giant participated in Brookfield India Reit’s Rs 2,800 crore qualified institutional placement, which concluded last week. This move is seen as a big step for future Reit issuances, given LIC’s substantial investment capacity. Industry experts hail LIC’s entry into the Reit market as a high point, with the potential to stimulate future Reit offerings. Notably, LIC plans to invest Rs 1.3 trillion in equities this financial year, as confirmed by Managing Director and Chief Executive Officer Siddhartha Mohanty earlier this year.