GIFT Nifty derivative contracts at NSE International Exchange in GIFT City, Gandhinagar, saw a 46% drop in turnover in May, falling to $44.24 billion from April’s $82 billion.
Market experts attribute this decline to foreign investors selling off Indian shares worth $2.7 billion due to election result uncertainty and increased volatility.
Despite the volume drop, open interest remains stable. Factors contributing to lower volumes include reduced intraday trading, higher volatility, and changes in contract size.
Additionally, domestic cash and F&O turnover on BSE and NSE remained stagnant, with May’s F&O turnover hitting a six-month low. Seasonal trends and US market performance also influenced the reduced trading activity.
India’s GDP growth in the fourth quarter of FY 2023-24 is anticipated to be between 6.1% and 6.7%, down from over 8% in the previous three quarters. The government will release the official figures on May 31.
Annual growth is estimated to be between 7.6% and 7.8%, though some officials suggest it could reach 8%. Robust growth in trade, hotels, manufacturing, and construction is noted, while agriculture may lag.
For FY 2024-25, a growth rate of around 6.6% is projected, with potential challenges in export growth. Domestic and international institutions forecast strong growth of around 7% for FY 2025.
PhonePe and BharatPe have settled their five-year legal dispute over the use of the ‘Pe’ suffix in their brand names. Both companies have withdrawn all trademark oppositions, allowing for the registration of their respective marks.
The conflict began in 2018 when PhonePe objected to BharatPe’s use of ‘Pe’ in Devanagari script, leading to legal actions in 2019 and 2021. Leaders from both companies expressed satisfaction with the resolution, emphasizing the positive impact on the fintech industry.
SEBI is cracking down on gaming apps offering virtual trading and fantasy games based on real-time stock prices. It has instructed exchanges and depositories not to share real-time price data with third parties to prevent such activities, comparing them to illegal “dabba trading.”
This action does not affect media agencies providing real-time data. Many stock gaming platforms in India allow users to compete with fictional portfolios for prizes, but SEBI prohibits monetary incentives based on virtual trading performance.
Exchanges and depositories are now responsible for monitoring data use. SEBI’s measures aim to end unauthorized data use for trading competitions and related activities.
Foreign portfolio investors (FPIs) have significantly reduced their investment in Indian financial services stocks, selling $6.6 billion worth since the start of 2024, compared to $2.7 billion in overall domestic equity outflows.
Regulatory tightening by the RBI and concerns over rapid loan growth are contributing factors. Financial sector assets under management fell by 5.9% year-to-date, while total FPI equity value increased by 6%.
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