Street Signs: Ireda and Adani Ports in focus, trading time capsule & more

Shooting stars: Ireda, JSW Infra, APSEZ rise in FTSE galaxy

Shares of the Indian Renewable Energy Development Agency (Ireda), JSW Infrastructure, and Tata Technologies will be in the limelight on Monday following their addition to the FTSE World Index over the weekend. The three stocks could attract passive inflows between Rs 280 crore and Rs 470 crore, according to analysts. Meanwhile, Adani Ports and Special Economic Zone (APSEZ) will also be in focus following its surprise entry into the benchmark S&P BSE Sensex, which will result in inflows of nearly Rs 2,000 crore into the counter. “It was widely expected that Adani Enterprises would be added, and the market was positioned accordingly; as a result, APSEZ could see some buying,” said an analyst. All changes to the indices were announced after market hours on Friday.

Trading time capsule: US embraces T+1, sending global markets into orbit

The US, the world’s largest equity market, will transition to the T+1 (trade plus one day) settlement cycle on Tuesday. The move comes over 16 months after India successfully transitioned to the T+1 cycle. The domestic market has gone a step further and is trying out same-day settlement on a pilot basis, even as there is a heated debate around the world about where one draws a line when it comes to reducing settlement timelines. According to news reports, US market participants are anxious about trade fails, additional costs, and other operational challenges. Domestic market participants, mainly overseas funds, had similar fears when India decided to halve its trade settlement cycle. However, given the more sophisticated nature of the US market and its $55 trillion market capitalisation, the transition could be more challenging and have implications for other markets as well.

Political quakes, market rumbles: Seismic shifts or investment gold?

While most market pundits maintain that any change in the government at the Centre will be a shocker for the market, they also add that any fall in stock prices would present a buying opportunity as India’s economy is poised for growth no matter who is in the driver’s seat. At a recent event, a senior Union minister took umbrage at the theory that a ‘Bharatiya Janata Party defeat is only a short-term hiccup to the market, but the long-term growth trajectory is intact’. The minister was of the view that no government has delivered like the National Democratic Alliance despite having to deal with an economic slowdown during Covid-19, implying that a change of guard will affect economic policy and the markets.