Stories
Nifty Eyes Second Weekly Gain as GIFT Nifty Hints at Positive Start
- •GIFT Nifty indicates a positive opening for Dalal Street following strong gains in the previous session where the Sensex rose 1,534 points and Nifty neared 23,000.
- •The Nifty is heading toward its second consecutive weekly gain, showing a 3% increase for the week.
- •Wall Street finished higher with the Dow up 1.1%, while US 10-year yields declined by 10 bps to 5.08% and Asian markets traded up by 1%.
- •Key market trackers include Brent crude near $105, gold at $4,156, and institutional flows featuring FII selling of ₹5,285 crore and DII buying of ₹3,319 crore.
- •Regulatory updates include Sebi revising its CAS rules and moving back to VWAP settlement for derivatives, alongside ongoing Q2 earnings announcements.
Key Questions Answered
SEBI is reviewing the Closing Auction Session (CAS) system because it led to sharp and uncontrolled price volatility in derivatives on expiry days. This sudden price movement forced trades to close at unfavorable levels, prompting widespread trader pushback and roughly 20,000 suggestions following a regulatory consultation paper.
SEBI is likely to revert to using the volume-weighted average price (VWAP) of the final 30 minutes of trading to determine derivatives settlement pricing for at least a year, moving away from the CAS system.
Dalal Street pointed to a positive start with the Nifty tracking toward its second consecutive weekly gain, up 3% for the week. This followed a session where the Sensex rose 1,534 points and the Nifty closed near a two-week high at nearly 23,000.
