Jefferies believes SEBI’s interim order restricting U.S.-based trading firm Jane Street from participating in Indian markets until it returns profits from alleged manipulative practices reflects the regulator’s increasing emphasis on governance and market integrity.
Jane Street was a significant player in Indian capital markets, and its exit could lead to a dip in volumes, Jefferies said. However, the brokerage noted that this impact may be partly offset by a rise in proprietary trading activity.
According to Jefferies, data from Friday showed that exchange-traded options premium turnover was slightly below the two-month Friday average but still higher week-on-week. The firm believes trends in trading activity during the coming week will be important to monitor.
On the earnings front, Jefferies expects the impact on BSE to be low, as foreign portfolio investors (FPIs) contribute only 3–4% of total turnover. However, the effect could be more pronounced for Nuvama, particularly across its Asset Servicing (AS) and Institutional Equities (IE) segments, where foreign institutional participation is higher.
Disclaimer: The views expressed above are those of Jefferies and do not constitute investment advice. This article is for informational purposes only.