Derivatives turnover dips after Sebi curbs; average daily turnover value in equity cash segment of NSE stood at Rs 50,300 cr
In terms of policy response, governments and central banks are intervening aggressively in the advanced economies
Economic uncertainty will keep stock prices volatile
Market regulator has introduced curbs on short selling, increased margins and penalties
In March, collections had declined nearly 50%
After swinging over 566 points during the day, the 30-share index ended 59.28 points, or 0.19% higher at 31,648
Experts favour passive funds up to 40% in core and a bunch of active funds in satellite portfolio
The spread of Covid-19 and the accompanying mayhem caused the S&P BSE Sensex to drop over 38.5 per cent from its all-time high of 42273.9 to a low of 25981.2 on 23rd March.
The Sensex advanced 0.7 per cent to 30,602.61 at the 3:30 pm close in Mumbai, after swinging between a loss of as much as 1.2% and a gain of as much as 1.4%
Experts say taking large cash calls can also put equity schemes at risk of underperformance, if markets bounce back instead of seeing further deep corrections
Post-tax returns are likely to be higher if you hold these funds for a year
Further delay in fundraising will postpone the expected improvement in the leverage profile and limit the cushion available for absorbing contingencies
RBI has done well to contain excess volatility
The bulk of the buying by value is likely to be from HNIs, a market expert said
Both Tata MF and ICICI Prudential MF had suspended fresh flows into their arbitrage schemes
Recent Sebi move, drop in securities' prices contribute to the fall
This is a boon for investors holding gold exchange-traded funds and sovereign gold bonds
Counters such as NCC, Indiabulls Housing Finance, Jindal Steel & Power, Just Dial, Adani Enterprises, Canara Bank, etc. would likely be immediately placed in the ban period for derivatives trading.
Sebi's action pragmatic, but will not change market reality
Market players said the move was to discourage traders from aggressively building short positions.