There’s buzz about possible new curbs on derivatives trading, which could impact stock brokers and BSE’s shares.
| Photo Credit:
FRANCIS MASCARENHAS
Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at:
- BSE options turnover
- Real estate stocks
- Agrochemicals recovery
President Donald Trump’s hints at new tariffs on copper and pharma imports, plus a possible 10% levy on BRICS nations, are making investors jittery. To top it off, Asian shares are already trading lower. Meanwhile, there’s buzz about possible new curbs on derivatives trading, which could impact stock brokers and BSE’s shares.
BSE options volumes hold steady after Jane Street ban
Tuesday’s BSE Sensex weekly options expiry — the first since SEBI banned Jane Street last Friday — didn’t show much of a shake-up. Some 275 million puts and calls changed hands, pretty much in line with the recent expiry-day trends, according to BSE data compiled by Bloomberg. Earlier this week, Jefferies noted that the US quant firm likely accounted for about 1% of BSE’s derivatives turnover. All eyes now turn to Thursday’s Nifty 50 options expiry, where Jane Street’s presence was believed to be significant.
Developer shares struggle despite earnings momentum
Property stocks have struggled this year, with a Nifty gauge of developers trading about 15% below its recent peak. That’s at odds with the sector’s solid fundamentals. Kotak Securities expects residential developers it tracks to post record earnings for the June quarter, driven by over 100 billion rupees ($1.2 billion) of pre-sales each by DLF and Prestige Estates. Other preferred picks include Lodha Developers and Brigade Enterprises.
Agrochemicals on the mend
The worst may be over India’s agrochemicals sector, with a gradual recovery now taking shape, according to analysts at Anand Rathi. They say sentiment has improved thanks to the early arrival of monsoon, and stabilizing prices in both domestic and global markets. That said, how the rain pans out in July will be key for driving sales. Top picks from the firm include Bayer Crop Science, Dhanuka Agritech, and Coromandel International.
Analysts actions:
- Phoenix Mills Rated New Reduce at Nomura; PT 1,400 rupees
- Cyient DLM Rated New Neutral at JPMorgan; PT 450 rupees
- Indegene Rated New Buy at Batlivala & Karani; PT 648 rupees
Shares of India’s capital market infrastructure companies — often seen as a proxy for the rising clout of local equities — have come under pressure following SEBI’s action against Jane Street. Adding to the worries, the regulator’s latest study showed growing losses for individual investors trading derivatives. Bloomberg’s custom index tracking these capital market-linked firms has slipped since the Jane Street move, as investors weigh the impact and the risk of further regulatory curbs in the derivatives space.
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Published on July 9, 2025
