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Some leading brokers were busy setting a bull trap over the past couple of months. Market players say a number of them had raised money in the past few months through an instrument that predicted the Nifty was going to hit 8,900-9,000. After the Nifty hit 8,952 on January 29, these brokers offloaded shares, leading to a sharp decline in prices. A bull trap is one in which brokers come together to shore up the index or a certain stock. When bullish investors purchase the index or stock thinking it will increase in value, they dump it. The same brokers are now busy raising money by predicting 9,200-9,400 for the Nifty in the next few weeks.
Bullish on AIFs
The nascent alternative investment fund sector has seen some global entities wetting their beaks, though it is still grappling with many teething issues such as taxation. The list of those betting on its growth now extends to the education field. The Chartered Alternative Investment Analyst Association (CAIA), which offers certificate programmes in alternative investments, organised a networking programme recently at the new financial hub of the Bandra Kurla Complex in Mumbai. CAIA officials said the Indian alternative investment business, and hedge funds in particular, might well multiply many times in size from here on - music to the ears of those who are already in the game.
MCX-SX spreads wings
The MCX Stock Exchange Limited (MCX-SX), which has received the Securities and Exchange Board of India (Sebi)'s approval for launching new contracts, is looking to also strengthen other exchange product categories. While Saurabh Sarkar, managing directory and chief executive officer of the exchange, has said MCX-SX's primary focus will be the currency derivatives market, he has also expressed interest in inviting companies listed on regional stock exchanges that have gone out of business or are on their way out. These companies would otherwise end up in the dissemination board of the BSE and the NSE, in which no trading takes place currently. Listing on MCX-SX might be a good platform option - one that could keep them from fading into stock market oblivion.
