Street signs: MSE awakens, struggling Nifty, bourses draw the line

MSE awakens: Sleeping giant stirs in unlisted market

 

Although it is too early to predict the success of the Metropolitan Stock Exchange (MSE) of India’s latest revival attempt, investor enthusiasm is already building. Shares of the country’s third-largest equity bourse have surged from Rs 2 to Rs 10 following the exchange’s announcement that it is raising Rs 238 crore in fresh capital by allotting shares to firms linked to top brokerages Groww and Zerodha. Platforms facilitating unlisted market trading report strong demand for MSE shares between Rs 10 and Rs 20, though sellers are scarce. Shares are being allotted through private placement at just Rs 2 apiece, valuing the bourse at Rs 1,200 crore. Optimism is driven by the Securities and Exchange Board of India’s recent decision to allow only one weekly expiry per exchange, which could support MSE’s revival efforts.

 

The Nifty struggle: A tightrope walk between risk and recovery

 

After dropping nearly 5 per cent the previous week, the benchmark National Stock Exchange Nifty consolidated last week, gaining close to 1 per cent. Experts say the market is still not out of the woods, as sentiment remains subdued due to sustained selling by foreign investors amid the weakness of the rupee. Technical experts believe the Nifty must maintain its current levels. The 50-share blue-chip index last closed at 23,813. “A decisive breach below the recent swing low of 23,500 could intensify selling pressure, with the next major support level near November’s low of 23,263. On the upside, the 24,100–24,400 zone remains a key resistance area,” said Ajit Mishra, senior vice-president of research at Religare Broking, advising traders to maintain a cautious approach and seek stock- or sector-specific opportunities.

 

Bourses draw the line: Taming the algorithmic Wild West

 

While the Securities and Exchange Board of India gathers public feedback on assigning broker responsibilities for algorithmic trading platforms, exchanges are already laying the groundwork. Sources reveal that bourses are setting eligibility conditions for empanelling these platforms. The eligibility criteria will prioritise two key factors: prior experience and educational qualifications. A platform’s experience in developing algorithms will be crucial, ensuring that only those with a proven track record of creating effective algorithms are empanelled. The educational qualifications of the platform’s personnel will also be considered to ensure they possess the necessary expertise to develop and implement sophisticated algorithms.