Indian stock markets experienced a week of stability and sanity after weeks of volatility. The India VIX fell sharply, indicating a return to stability in the market. Among the 20 key sectors, only IT and FMCG gave negative returns, while defense, realty, and the CPSE index were the top gainers. Foreign portfolio investors (FPIs) were net buyers, and the USDINR came under pressure. India announced important economic data, including consumer inflation, industrial output, wholesale inflation, and trade deficit data. The Federal Reserve's policy statement indicated a status quo with one rate cut in 2024 and more aggressive rate cuts in 2025. The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) minutes will be published on June 21.
Looking ahead, the coming week will see corporate actions, FPI activity, and key data points from the US. The volatility index (VIX), Nifty, Sensex, and FPI activity will play a crucial role in determining the market direction. A positive sign would be if the Nifty breaks above 24,000 and the Sensex breaks above 79,000. The last nine days of trading have shifted the undertone to the positive zone, and the government is expected to focus on aggressive growth and reforms. [9e9edbfd] [382e7027]
Market regulator SEBI has revised the criteria for the inclusion and deletion of stocks from the futures and options (F&O) segment. The move could lead to the addition and deletion of about two dozen stocks. The new rules include revising the market-wide position limit (MWPL) to Rs 75 lakh, the median quarter sigma order size (MQSOS) to Rs 1,500 crore, and the average daily delivery value (ADDV) to Rs 35 crore. SEBI has also extended the 'product success framework' (PSF) for single stock derivatives. The changes come amid increasing volumes and rising market capitalization. [efdaaa39]