Given persistent global uncertainties and elevated market volatility, traders are advised to maintain discipline and be selective, focusing on fundamentally strong stocks during market corrections, an analyst said.
Dhiraj Relli, MD & CEO of HDFC Securities, shares his perspective on the RBI’s decision to tighten lending norms for brokers effective April 1 and what it means for capital market players. With stricter bank financing and changes around cash collateral usage, the move is expected to impact trading activity, especially in the derivatives segment. Relli explains how higher funding costs and reduced leverage could make intra-day trading more expensive, potentially leading to a 15–20% decline in F&O volumes. Prop traders and highly leveraged participants may feel the pressure first, raising concerns over earnings visibility for brokerage firms and other capital market-linked stocks. The discussion also delves into whether the earnings hit will be short-term or structural, and how investors should approach capital market names amid evolving regulatory norms.
In the short run, we can expect a range-bound market with high volatility, an analyst said.
Nifty 50 has broken a key support level of 25,650 which was suggested by analysts.