(Bloomberg) — Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at:
Good morning, this is Alex Gabriel Simon, an equities reporter in Mumbai. Stocks may open higher today after President Donald Trump indicated that a trade deal with India could be reached soon, and the country avoided receiving a tariff letter unlike some of its peers. Investor attention will also be on the BSE and stock brokerage firms, following a recent study that revealed a worsening trend of losses in derivatives trading among retail investors.
Retail traders drop over 1 trillion rupees in F&O
Individual investors lost over 1 trillion rupees dabbling in equity derivatives in the year ended March, a SEBI study released late Monday shows. That’s a sharp jump from 748 billion rupees the year before — even after the regulator introduced measures late last year to curb excessive speculation. The findings come just days after SEBI temporarily banned Jane Street, accusing it of misleading retail participants through alleged index manipulation. Jane Street has denied the claims.
Jane Street curbs may hit options volumes, Nuvama earnings
The temporary trading ban on Jane Street may dent options volumes and weigh on earnings for intermediaries like Nuvama Wealth, which counted the quant firm among its key clients, according to Jefferies. In contrast, BSE may see limited impact, as foreign investors account for only a tiny portion of the bourse’s derivatives segment turnover, the brokerage said. Nuvama shares rebounded on Monday after a steep selloff in the previous trading session.
Silver may shine in July on seasonality, strong demand
Silver tends to perform well in July, and Ambit analysts say this year could be no different. The silver/gold ratio is currently about one standard deviation below its long-term average, thanks to gold’s recent rally. Meanwhile, global green energy policies are boosting silver’s appeal as a key industrial metal, they add.
Three great reads from Bloomberg today:
The Indian rupee was among the worst-performing emerging Asian currencies on Monday, after President Donald Trump threatened harsher tariffs on nations backing “Anti-American policies” of the BRICS bloc. The rupee slid as much as 0.7% — its steepest in two months — to 86.0262 per dollar. Australia & New Zealand Banking Group expects further weakness, projecting a move toward 86.50 in the coming weeks.
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–With assistance from Bhaskar Dutta, Kartik Goyal and Chiranjivi Chakraborty.
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