The stock market Here is your market wrap for the week ending February 7, 2025, which provides a thorough summary of the week’s highlights, including everything from the most important news to market performance.
A framework for safer retail involvement in algorithmic trading is unveiled by SEBI.
On August 1, 2025, the legal framework developed by SEBI for algorithmic trading by retail through brokers will become operative. The framework states that brokers are required to supervise API-based algo trading, empanel algo providers, and guarantee adherence to stock exchange regulations. Brokers are required to review, approve, and monitor algorithms to guarantee investor safety, risk management, and transparency.
They must also inform clients of execution data and caution them about potential risks. Unregistered third-party algo providers are not eligible to claim guaranteed returns, and brokers are expected to supervise all retail algos. These steps are meant to prevent exploitation, safeguard individual investors, and standardise algorithm trading.
Algo trading: a new era for individual investors :
Algorithmic trading, sometimes referred to as “algo trading,” offers benefits like quicker trading, lower costs, and increased liquidity by using automated algorithms to analyze massive data sets and finish deals in a matter of milliseconds. Beginning February 4, 2025, retail investors may trade algorithms through approved brokers under SEBI’s legal framework. However, exchange permission is required for all approaches.
Retail investors could have to pay for items like required gear and software and third-party service subscription costs, while brokers might have to pay application and administrative fees for approval.
India’s foreign exchange reserves have increased by $1.05 billion to $630.607 billion.
India now has $630.607 billion in foreign currency reserves (Forex), up $1.05 billion. This increase reflects the strengthening of the nation’s foreign exchange holdings, gold reserves, special drawing rights (SDRs), and Reserve Position in the International Monetary Fund (IMF). Maintaining currency rate stability and promoting international trade depend on forex reserves.
Several AMCs have introduced NFOs with a range of themes.
New fund offerings (NFOs) on a variety of subjects have been introduced by numerous AMCs. While Invesco AMC revealed the Invesco India Business Cycle Growth, SBI AMC revealed the growth of the SBI Nifty IT Index. Bajaj AMC revealed Bajaj Finserv Multi Cap Growth, while ITI AMC reported ITI Bharat Consumption Growth.
While HSBC AMC published HSBC Financial Services Growth, Motilal Oswal AMC unveiled Motilal Oswal Innovation Opportunities Growth. HDFC AMC unveiled the HDFC Nifty100 Quality 30 Index Growth, while Edelweiss AMC unveiled Edelweiss Consumption Growth.
These funds give investors the chance to diversify their portfolios by catering to various industries and investment philosophies.