SEBI Curbs F&O Frenzy, Nifty Peaks 25K And More That Happened This Week

The week gone by was exceptional on multiple fronts. The markets scaled to a fresh peak, buoyed by positive earnings. India's securities market regulator acts to curb the frenzy in the futures and options segment. The country's April–June fiscal deficit reached 8.1% of the target for the current financial year.

NDTV Profit, in its weekly newsletter every Friday, brings you the mega events across businesses, industries and countries that have impacted investors' wealth.

SEBI Mulls To Keep Derivatives Boom Under Control

In a move to curb excessive speculation in equity derivatives, the Securities and Exchange Board of India proposed seven new measures, including mandating the upfront collection of option premiums from buyers by trading members and clearing members. However, experts see this measure as protective and not very restrictive. SEBI, on its part, has clarified that the moves are an attempt to curb the frenzy seen in this space of late.

Last week, the Union government, in its budget, proposed to increase the securities transaction tax on futures from 0.01% to 0.02% and the STT on options from 0.062% to 0.1%.

Nifty Past The 25K Mark: What Next?

India's benchmark index—the NSE Nifty 50—climbed to a fresh record and surpassed the key psychological barrier of the 25,000 mark on Thursday.

The landmark has been buoyed by optimistic first-quarter earnings and shrugging off the negative sentiments from the capital tax gains in the Union Budget 2024.

The index recorded a 1,000-point journey in 25 sessions while taking about 11 months to add 5,000 points to the index.

Meanwhile, experts call for investors to take contrarian calls by choosing and investing in themes or companies that have been ignored for the past few years.

India's Fiscal Deficit Reaches 8.1% Of FY25 Target

The Union government's fiscal deficit expanded to 8.1% of the budgetary target for the financial year ending March 2025.

In actual terms, the fiscal deficit is Rs 1.36 lakh crore of the total limit set at Rs 16.85 lakh crore. India recorded Rs 2.9 lakh crore in income tax, whereas corporate tax was reported at Rs 1.7 lakh crore, according to provisional data.

The total expenditure was reported at 20.4% of the full fiscal target of Rs 9.7 lakh crore. In terms of capital expenditure, the government spent 16.3% of the target at Rs 1.8 lakh crore for the April–June period.

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Why Freshers' Salary Hikes Aren't Keeping Pace With Inflation

Freshers today earn a lot more, but they also end up spending more.

In the last five years, entry-level salaries have increased significantly. Foundit reports that the average salary has risen from Rs 3 to Rs 6 lakh per year over this period.

Meanwhile, cities across the nation, especially metro cities, have seen a rapid increase in the cost of living. In 2024, the basic rent in metro cities like Delhi, Mumbai, Bengaluru and Chennai will go up to Rs 15,000 to 20,000 per month.

The consumer price index, which is inclusive of food and fuel, has also gone up from 147.2 in October 2019 to 187.6 in May 2024. Expenses continue to rise rapidly as household expenditures in metro cities are estimated to be at least Rs 3,000 to Rs 10,000 in 2024.

What's the solution? Start with a systematic investment plan as early as you can. The amount you invest does not matter as long as you stick to an SIP and stay invested.