The Securities and Exchange Board of India (Sebi) on Wednesday said short-selling and securities lending and borrowing will be operationalised from April 21.Short-selling refers to the practice of selling a stock which the seller does not own at the time of trade with the hope of buying it back at a lower price.
However, the regulator dealt with the FIIs on expected lines and the meeting was over without Sebi spelling out any action against 'dubious' short sellers. Earlier on October 17, Sebi had written to all the PN-issuing FIIs to submit the data for stocks lent overseas in 2008 so far by October 23.
Lending and borrowing of securities for short-selling at stock exchanges will not attract Securities Transaction Tax or capital gains tax.
Equity markets fell on Monday, with benchmark indices recording their worst session in over two months amid caution ahead of the US Federal Reserve's (Fed's) policy announcement and renewed uncertainty over the US-India trade deal. Sustained selling by foreign portfolio investors (FPIs) also weighed on sentiment.
'Exiting during corrections tends to lock in losses. Patient investors have benefited from holding through similar drawdowns in past cycles.'
Among the Sensex constituents, Eternal, Tata Steel, Kotak Mahindra Bank, UltraTech Cement, Maruti Suzuki India, Sun Pharmaceuticals, Tech Mahindra, HDFC Bank, Tata Motors Passenger Vehicles, Infosys, Trent, Mahindra & Mahindra, Reliance Industries and HCL Technologies were the gainers. However, Asian Paints, Bharti Airtel, Bajaj Finance, PowerGrid, Axis Bank, ICICI Bank and Titan were among the laggards.
Assessing where their funds are flowing gives traders a hidden edge in predicting the market direction and momentum.
'Long-short SIFs are designed for seasoned, high-risk, high-reward investors, who understand market volatility.'
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
Timing is crucial for a short-sell, so is an understanding of likely float.
Among the Sensex constituents, Bharat Electronics Ltd, Eternal, Trent, Tata Steel, Bajaj Finance, Adani Ports, Bajaj Finserv, State Bank of India, PowerGrid, Asian Paints, Tata Motors Passenger Vehicles, Titan, NTPC, Kotak Mahindra Bank, Larsen & Toubro and Bharti Airtel were among the laggards. Tech Mahindra, HCL Technologies, Reliance Industries and HDFC Bank were the only gainers.
Investors seeking higher returns at relatively higher risk should consider allocation to smallcap equity funds.
'Investments are like motion pictures rather than still photographs.' 'Business dynamics keep evolving for better or for worse over time.' 'An investor's job is to keep a tab on these developments,' says Viraj Mehta, head-PMS and fund manager, Equirus Securities.
The rupee breached 90-levels against the greenback for the first time on Wednesday, falling 6 paise to 90.02 in early trade, as banks kept buying US dollars at higher levels and FII outflows continued.
'Only four or five original companies remain; the rest have been replaced every decade as sectors evolve or leadership shifts.' 'Companies that fail to adapt -- like many textile mills from the 1970s and shipping firms from the 1980s -- disappear.' 'Benchmark indices reward those who reinvent themselves in line with economic demands.'
The story of the Bombay Stock Exchange and the people who shaped its growth: From wars and bomb blasts to speculators, reformers and wealth creators.
The average daily turnover (ADTV) in the derivatives market rose to a 12-month high in October, touching 506 trillion - up nearly 46 per cent since June - as volatility picked up and concerns over further regulatory tightening eased. Derivatives activity had slumped earlier this year after the Securities and Exchange Board of India (Sebi) capped weekly expiries to two days and discontinued weekly contracts on non-benchmark indices.
Investors who constantly hop between 'top-performing' funds often end up earning far lower returns than the very funds they invest in -- simply because they enter late and exit early. Best investors don't chase returns, they chase discipline, says Ramalingam Kalirajan.
'In the long run, India's strong growth story and reforms to make assets globally attractive will determine the rupee's resilience.'
From the Sensex firms, HCL Tech, Tata Steel, Tech Mahindra, Reliance Industries, Bharat Electronics and ICICI Bank were among the laggards. Bajaj Finance, Hindustan Unilever, UltraTech Cement and Power Grid were among the gainers.
From Rs 73k to over Rs 1.2L between January-December 2025 -- is buying gold in 2026 still sensible?
When shorts are based on perceived corporate mismanagement or malfeasance, as in cases like Enron and Satyam, they enable the financial system to work efficiently, points out Devangshu Datta.
'The momentum is driven by rising affluence, strong demand from HNIs (high net worth individuals) and NRIs (non-resident Indians), an increased appetite for larger, well-located homes by branded developers, and support from the economy.'
Investors can meet cash needs without selling their securities.
'First-time or conservative investors should avoid narrow sectoral funds.'
A multibagger stock multiplies its original investment several times, delivering returns of 100%, 200%, or even higher. The excitement of finding such wealth creators is undeniable, but the process of identifying them is far from simple. It requires a careful blend of research, patience, and the right set of tools.
Algo trading should be segregated in a separate account with only risk capital deployed.
You don't need a six-figure salary to build wealth -- you need discipline and a smart plan, says Ramalingam Kalirajan. and shows you how
'The danger is that when the music stops, the fall will be sudden, faster, and deeper than anyone expects,' warns Debashis Basu.
A ban on futures would lower liquidity and make the markets more volatile. In any case, the recent US experience shows such bans don't stop markets from falling.
'Indian markets may underperform global peers for the next two quarters.' 'But beyond that, India should catch up and resume its long-term growth path.'
Passive funds appeal to investors seeking to avoid the risk of underperformance by the fund manager and minimise the need for frequent chopping and changing of funds.
Success in this space demands more than luck, it requires sharp analysis, disciplined execution, and understanding market movers.
'It takes time and the experience of a few market cycles to develop awareness about one's true risk appetite.'
Those who have long retirement horizons of 15 to 20 years and seek higher long-term returns may opt for MSF. Investors nearing retirement (under 10 years) or those with low risk tolerance should stay away.
Here's what Indian investors diversifying into equities, ETFs, and real estate abroad to manage risk, returns, and currency exposure must watch out for.
The biggest risk for investors isn't the market, but their own minds, biases and emotions often lead to poor financial choices.
Adani group stocks rallied on Thursday morning after Hindenburg Research, a US investment research firm known for short-selling, and whose reports resulted in wiping out billions of dollars of Indian billionaire Gautam Adani and his companies, has been shut down. Shares of Adani Power surged 9.21 per cent, Adani Green Energy soared 8.86 per cent, Adani Enterprises climbed 7.72 per cent, Adani Total Gas jumped 7.10 per cent, NDTV rallied 7 per cent and Adani Energy Solutions advanced 6.63 per cent on the BSE.
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
Investors may wait for six months and then take another look at the stock.
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