Smallcap funds have managed to improve their liquidity situation in March. Over a dozen smallcap funds, which released the second round of stress test reports until Saturday, showed that they would need an average of 13.5 days to liquidate 50 per cent of their portfolio, compared to 14.3 days in February. The improvements come amid a correction in smallcap stocks and outflows from these schemes. During the same period, cash holdings declined marginally from 5.9 per cent to 5.5 per cent. The decline in cash levels is the highest in the case of the ICICI Prudential Smallcap Fund, as it decreased from 9.9 per cent to 6 per cent.
Market crossroads: Riding the waves or anchoring down?
With markets hovering around their record-high levels, traders are facing the dilemma of whether to buy the dip or sell the rallies. However, given the recent headwinds such as high US inflation, rising bond yields, and geopolitical tensions, analysts believe that taking a cautious approach would be the right strategy. “Traders should refrain from chasing buying opportunities at elevated levels and are encouraged to consider profit-booking on any bounce-back. Notably, the range of 22,700 to 22,800 presents significant resistance,” said Rajesh Bhosale, technical analyst at Angel One. The benchmark National Stock Exchange Nifty last closed at 22,519. Bhosale added that the 22,500–22,450 levels are crucial for the index, and a drop below these levels could lead to a further correction towards 22,300.
Sebi honours: Unveiling market innovations, layer by layer
Market infrastructure institutions (MIIs) have been rewarded for meeting complex challenges such as same-day settlement, block facilities backed by the Unified Payments Interface, and blockchain-based monitoring programmes. Recently, the market regulator, the Securities and Exchange Board of India (Sebi), awarded the National Securities Depository, BSE, and other MIIs for innovative technological developments and investor awareness programmes. India has transitioned to a T+0 settlement cycle on an optional basis for a limited number of stocks. Earlier this year, the block mechanism for the secondary market was also launched as a beta version. At a recent event, Sebi Chairperson Madhabi Puri Buch said problem-solving with her is like peeling an onion. “It makes everybody cry... But by the time you are done, you suddenly realise there is no problem left.”
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