Sebi curbs on short-selling and enhanced margins have sent most of the FPI trade overseas, as is evident from the 250% jump in Singapore Exchange's Nifty futures contracts in March. In its determined effort to check volatility on domestic bourses, Sebi has further extended the restrictions till May 31. That makes the current market setup artificial in the absence of bets on both sides. And it might turn out to be a trap for retail investors as shorts will come back with a vengeance when these curbs go.
MARKET CUES: Where we stand >>>  | Nifty futures on the Singapore Exchange traded 70 points lower at 7 am (IST) signalling more distress ahead on Dalal Street. |
| Nifty50 slipped below the 9,000 level on Tuesday and analysts said only a close above the 9,100 level can instill confidence among traders. The RSI has turned southward from the neutral zone of 50, suggesting weakness. |
| India VIX moved up 4% to 45.20 level. Its rebound from the support of its previous swing highs may cause a pause in recent market bounce |
| Elsewhere in Asia, stocks retreated after a risk-off session on Wall Street. Shares fell in Tokyo, Seoul and Sydney, though declines were shallower than those in the US on Tuesday. |
| US stocks fell sharply for a second day on Tuesday, taking a cue from a further slide in oil futures. Dow dropped 632 points, or 2.7%; the S&P500 lost 87 points, or 3.1%, and the Nasdaq 297 points, or 3.5%. |
| Crude edged up after a two-day tumble. June delivery WTI crude futures rose as much as 20% to $13.93 a barrel, after tumbling more than 50% over the past two sessions. |
| The rupee settled 30 paise lower at 76.83 against the US dollar on Tuesday, tracking weak domestic equities and strengthening of the US dollar overseas. |
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Facebook pumps $5.7b into Jio... Facebook on Wednesday announced a $5.7 billion investment in Reliance Industries' telecom unit, making it the largest minority shareholder in Jio Platforms. The social media giant said it would focus on collaborating its messaging platform WhatsApp with Reliance's e-commerce venture JioMart to enable people to connect with businesses, shops and purchase products.
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MCX oil bulls take a knock... Crude oil bulls on MCX have been badly singed as they cumulatively have to cough up Rs 332.3 crore more after the exchange in a circular on Tuesday fixed the due date rate of the April 20 expiry crude contract at a negative Rs 2,884 a barrel. The hapless bulls saw their punts evaporate on Monday night when the Nymex crude contract, that MCX crude mirrors, hit a negative $37.63 a barrel after the domestic bourse closed at 5 pm. Brokers are now on edge as some of them fear that their clients might not pay up or chose the arbitration route instead.
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Read More Meanwhile... Startups defer IPO plans... Indian startups are deferring IPO plans, cutting investment round sizes and accepting unfavourable bridge rounds with compressed valuations. In a bid to extend their cash runway, startups across sectors, including BigBasket, Capital Float, Shop101 and BankBazaar, have raised bridge funding rounds from existing investors, and multiple such conversations are under way across firms and stages, fund managers said.
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