23/07/26, Margin for Cash Market Trade

Market regulator Securities and Exchange Board of India (SEBI) is likely to replace the current flat 20 percent minimum upfront margin requirement for cash market trades with a risk-based framework that could lower margin requirements for investors in highly liquid stocks. The regulator has been discussing the proposal for quite a long time with stakeholders, and now the broader consultation is expected. As per sources, as the next step, the regulator is expected to come up with a consultation paper soon. 

Risk-Based Upfront Margin Collection

The proposal under consideration may require brokers to collect the lower of the applicable clearing corporation margin (Value at Risk plus Extreme Loss Margin) or 20 percent of the transaction value from clients before executing trades. The move is aimed at aligning the margin collected from investors with the actual risk assessed by clearing corporations and reduce unnecessary capital blockage.

At present, brokers are mandated by clearing corporations to collect a minimum upfront margin of 20 percent from clients to avoid short collection penalties, even though the minimum margin levied by clearing corporations for many large-cap liquid stocks is around 12.5 percent, comprising 9 percent VaR and 3.5 percent ELM. View is this results in investors blocking more funds than actually required by the underlying market risk.

The regulator's preliminary analysis with data of top 10 brokers suggests that the proposed move could reduce upfront margin requirements in the range of 10-15 percent for clients trading in highly liquid stocks without materially increasing risk. One source said, “The proposal was long under discussion with stakeholders and is nearly final”.

New Liquidity Criteria for Classification of Stocks

Alongside the margin review proposal, SEBI is also expected to tighten the criteria for classifying stocks based on liquidity. A working group comprising of clearing corporations had recommended to increase the trading frequency requirement for the most liquid Group I securities from the current 80 percent to 99 percent of trading days and reduce the impact cost threshold from 1 percent to 0.1 percent.

Similarly, for the Group II securities, the trading frequency criteria was recommended more than 80 percent and 99 percent trading frequency or 0.1 percent impact cost.

For Group III securities, the working group had suggested a trading frequency of less than 80 percent of trading days during the previous 6 months.

The proposed classification will be significant for market participants because it would also determine eligibility for the Margin Trading Facility (MTF).

Another source said, "The Working Group's recommended liquidity criteria for the grouping of securities are considered stringent and could shrink the universe of Group 1 stocks. It was therefore suggested that any revision should be implemented in a phased manner over a period of time, allowing the market sufficient time to adjust."

The current criteria for classification of stocks for margining and MTF were introduced in 2005 and have not been majorly reviewed since then. Hence, the review is long overdue. The number of stocks for Group I stocks has expanded over time due to growth in the size of the market.

Concentration Limits of Stocks

In addition, the working group had also suggested introducing concentration limits on collateral accepted by clearing corporations and clearing members to reduce dependence on a single security. The Working Group had suggested to cap the clearing corporation-wise limit to 20 percent of non-promoter holding for F&O stocks and, for non- F&O stocks, the lower of 20 percent of the non-promoter holding or 3 times the average daily traded quantity in the last six months.

For Clearing Member or clearing broker-wise, the limit prescribed by the panel was 50 percent of the average daily traded quantity in the last 6 months, including the proprietary securities and securities repledge on behalf of the broker, client or custodians.

The Working Group had suggested that the limit would be computed and shared by clearing corporations at the start of the month. The existing collateral exceeding the proposed limits would be allowed a transition period to comply. For a 3-month period, the limit will be informed and not enforced in excess of the new limits.

SEBI is considering a series of measures to deepen liquidity in the cash market as it seeks to boost trading volumes. The proposals under discussion include providing margin relief for buy-side trades through the Early Pay-In (EPI) facility, expanding the list of stocks eligible for short selling, and further strengthening the Stock Lending and Borrowing Mechanism (SLBM).

SEBI did not respond to an email seeking comments on the proposal.

written by Brajesh Kumar 

Source:moneycontrol

23/07/26, Market for Today

The Nifty 50 succumbed to selling pressure, declining 0.8 percent to end just below the psychological 24,000 mark on July 22, as escalating Middle East tensions lifted oil prices to $95 a barrel. Momentum indicators signal short-term weakness in the market. The index also slipped below its short-term moving averages and the midline of the Bollinger Bands, indicating that bears are in a stronger position. If the index sustains below the 24,000 level, a fall towards 23,800 cannot be ruled out. A breach of that level may allow bears to tighten their grip on the market further. However, in the event of a rebound, the 24,100-24,200 zone is likely to act as a hurdle, according to experts.

1)Levels For The  Nifty50(cmp23,996)

Resistance based on pivot points: 24,120, 24,168, and 24,246

Support based on pivot points: 23,963, 23,915, and 23,836

Special Formation: The Nifty 50 formed a long bearish candle on the daily charts after a period of consolidation and slipped below its short-term moving averages, the 100-day EMA, as well as the midline of the Bollinger Bands, reflecting bears gaining an upper hand. The RSI dropped to 48.61 and witnessed a negative crossover, while the MACD slipped further below the signal line, with the red bar in the histogram expanding further, indicating strengthening bearish momentum.

2) Key Levels For NiftyBank (cmp57,127)

Resistance based on pivot points: 57,633, 57,835, and 58,161

Support based on pivot points: 56,981, 56,780, and 56,454

Resistance based on Fibonacci retracement: 59,195, 61,717

Support based on Fibonacci retracement: 56,441, 55,742

Special Formation: The Bank Nifty declined 1.2 percent, breaking below the consolidation range of the past several sessions. It formed a long bearish candle on the daily charts, indicating increasing selling pressure. The banking index slipped decisively below its short-term moving averages and the midline of the Bollinger Bands, although it remained above its medium- and long-term moving averages. The RSI fell to 48.1 and continued to indicate a bearish crossover, while the MACD remained below the reference line, with the red bar in the histogram expanding, indicating weakness in the short term.

3) Nifty Call Option data:

According to the monthly options data, the maximum Call open interest was seen at the 24,200 strike (with 1.51 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 24,000 strike (1.34 crore contracts) and 24,100 strike (90.4 lakh contracts).

Maximum Call writing was observed at the 24,000 strike, which saw an addition of 87.3 lakh contracts, followed by the 24,100 and 24,050 strikes, which added 53.67 lakh and 45.69 lakh contracts, respectively. There was hardly any Call unwinding seen in the 23,500-24,450 strike band.

4) Nifty Put Option data:

On the Put side, the 24,000 strike holds the maximum Put open interest (with 1.22 crore contracts), which can act as a key level for the Nifty in the short term. It was followed by the 23,500 strike (83.11 lakh contracts) and the 24,200 strike (78.59 lakh contracts).

The maximum Put writing was placed at the 24,000 strike, which saw an addition of 46.01 lakh contracts, followed by the 23,950 and 23,500 strikes, which added 26.49 lakh and 21.8 lakh contracts, respectively. The maximum Put unwinding was seen at the 24,200 strike, which shed 15.4 lakh contracts, followed by the 24,150 and 24,300 strikes, which shed 3.81 lakh and 3.08 lakh contracts, respectively.

5) Nifty Bank Call Option dats:

According to the monthly options data, the maximum Call open interest was seen at the 58,000 strike, with 22.17 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 57,500 strike (10.42 lakh contracts) and the 57,000 strike (5.68 lakh contracts).

Maximum Call writing was observed at the 57,500 strike (with the addition of 6.44 lakh contracts), followed by the 58,000 strike (3.22 lakh contracts) and 57,300 strike (2.27 lakh contracts). There was hardly any Call unwinding seen in the 56,200-58,100 strike band.

6) NiftyBank Put Option data :

On the Put side, the 57,000 strike holds the maximum Put open interest (with 10.4 lakh contracts), which can act as a key support level for the index in the short term. This was followed by the 58,000 strike (10.28 lakh contracts) and the 57,500 strike (5.7 lakh contracts).

The maximum Put writing was placed at the 57,000 strike (which added 2.29 lakh contracts), followed by the 56,900 strike (80,160 contracts) and 57,300 strike (57,570 contracts). The maximum Put unwinding was seen at the 58,000 strike, which shed 3.35 lakh contracts, followed by the 56,500 and 57,500 strikes, which shed 2 lakh and 1.64 lakh contracts, respectively.

Report by Sunil Sankar Matkar

Source: Money control 

23/07/26, Dr Reddy's Labs on 200% tariff which imposes burden on US public

Dr Reddy's Laboratories does not see it as practical to shift generic drug manufacturing to the US in response to US President Donald Trump's proposed pharmaceutical tariffs, with CEO Erez Israeli saying higher medicine prices -- not factory relocations -- would be the more likely outcome if the levies are implemented.

Israeli was responding to Trump's proposed phased tariff regime, under which generic medicines would remain duty-free for two years before tariffs rise to 100 percent in 2028 and 200 percent from 2029, as part of a broader push to bring pharmaceutical manufacturing back to the US. Indian drugmakers supply around 40-50 percent of generic prescriptions in the US, making them among the most exposed to any policy shift.

"We are not going to do anything special because of the announcement today. We will learn and accordingly evolve," Israeli said during the company's post-earnings media interaction on July 23.

He added that if tariffs are eventually imposed, "we'll have to raise the price in the United States," arguing that the economics of generic medicines make large-scale manufacturing shifts unviable

 The CEO said industry bodies in both India and the US would engage with policymakers to better understand Washington's intentions before companies take any significant decisions.

He added that Dr Reddy's would wait for official guidelines before considering any response.

Israeli's comments echo broader concerns across the pharmaceutical industry.

Analysts and industry experts argue that a large-scale shift in generic drug manufacturing to the US would be difficult because the economics of low-cost medicines are fundamentally tied to India's manufacturing base. The proposed two-year transition period also gives companies time to assess their options rather than react immediately.

Asked whether Dr Reddy's would consider technology transfer arrangements or contract manufacturing partnerships in the US as a hedge against future tariffs, Israeli said the company remained open to opportunities that made commercial sense.

"We will always be open to anything that is good for the business and for customers," he said.

Israeli pointed to markets such as Russia and parts of the Middle East, where localisation requirements have prompted the company to transfer manufacturing capabilities when necessary.

However, he stressed that the US situation is different.

"Given the magnitude and the cost difference between the countries... I believe we are very far from the need to take those steps," he said.

"If it is required, we are always open. We are a very flexible company."

Israeli's measured stance reflects the broader response from India's pharmaceutical industry.

The Indian Pharmaceutical Alliance has said Indian drugmakers already operate more than 40 facilities in the US and play a critical role in ensuring medicine security and supply-chain resilience.

For now, Dr Reddy's remains focused on business execution.

The company has maintained its growth outlook despite a temporary setback in its semaglutide business and continues to see strong growth across India, emerging markets and the US.

Report by Pilla 

Network18

22/07/26, 200% Tariff on Indian Generics

 US President Donald Trump has escalated his push to bring pharmaceutical manufacturing back to America, announcing a phased tariff regime that could eventually impose a staggering 200 percent duty on imported generic medicines. For India's $9.7-billion pharmaceutical export engine to the US, the announcement has triggered fresh uncertainty but not immediate alarm.

On July 21, Trump posted on Truth Social that generic drugs entering the US will continue to enjoy zero tariffs for two years starting August 1. The duty will jump to 100 percent in August 2028 and double to 200 percent from August 2029. Trump has tied the tariffs to a broader effort to force manufacturers to set up production facilities in the US.

The official order is not yet out.

Why Trump is pressing ahead

The move is part of a wider pharmaceutical reshoring strategy that Trump has been pursuing through Section 232 investigations, a trade mechanism that allows the US administration to impose restrictions if imports are deemed a national security threat.

The commerce department's Section 232 review concluded that America's heavy dependence on imported medicines and pharmaceutical ingredients poses risks to both healthcare security and national preparedness.

In April, Trump used the Section 232 framework to impose steep tariffs on patented drugs and pharmaceutical ingredients while exempting generic medicines. The proclamation said generic drugs would not be subject to tariffs "at this time" and directed authorities to review the segment within a year. The latest announcement suggests that Washington has now turned its attention to generics market where India is the dominant overseas supplier.

Currently, generic drugs are exempt from tariffs in the US.

Impact on Indian drugmakers

Indian drugmakers account for roughly 40-50 percent of all generic prescriptions dispensed in the US.

There is no immediate earnings hit for India drugmakers. India exports more than $9.7 billion worth of pharmaceuticals to the US annually, with generics forming the backbone of that trade.

The two-year window provides time to evaluate manufacturing investments, restructure supply chains or negotiate potential exemptions. All major Indian drugmakers have manufacturing facilities in US to make formulations and finished dosages.

A key unanswered question is whether tariffs will apply only to finished formulations or also to active pharmaceutical ingredients (APIs), many of which are sourced globally. Industry executives say the final rules will determine the real impact on profitability.

What experts are saying

Thomas V Abraham, research analyst at Mirae Asset Sharekhan, said the market is waiting for greater clarity. According to him, most major Indian companies already have a manufacturing presence in the US, either through acquisitions or organic investments. A two-year runway may be sufficient to comply if local manufacturing requirements become a prerequisite.

Branded drugmakers previously negotiated arrangements with the US government to soften the impact of policy changes, a route that generic companies could potentially explore as well, he said.

Industry body the Indian Pharmaceutical Alliance struck a conciliatory tone. Secretary General Sudarshan Jain said Indian companies operate more than 40 facilities in the US, support local jobs, and contribute to supply-chain resilience. The association said it would continue engaging with the US administration to strengthen healthcare and medicine security for both countries.

Others see the announcement as a strategic wake-up call. Entod Pharmaceuticals CEO Nikkhil Masurkar said Indian pharma has become overly dependent on the US market and should accelerate expansion in the Middle East and other regions in Asia as well as Africa and Latin America. Diversification is an essential rather than an option, he said.

Is it a negotiating tool?

An analyst who didn't want to be named said the announcement may be a negotiating tool to extract a favourable trade deal with India.

"Generic medicines operate on razor-thin margins and manufacturing in the US carries significantly higher costs than India," he said.

Generics account for more than 90 percent of prescriptions dispensed in America, raising concerns that steep tariffs could ultimately increase healthcare costs for US consumers.

Analysts say that doubling the prices of essential medicines in an election year would be a political disaster.

Report by Vishwanath Pillai

Source:moneycontrol

22/07/26, The pay gap between private and public sector bank chiefs widened further in FY26, with the heads of leading private banks earning more than 15 times the average remuneration of their public sector counterparts.

 Despite receiving higher percentage hikes, PSU bank chiefs continued to lag their private sector peers, whose pay packages remained significantly higher due to performance-linked compensation structures and market dynamics. According to a Moneycontrol analysis of annual reports, the average daily pay of a public sector bank chief stood at Rs 15,840 in FY26, compared with Rs 1.39 lakh per day for a private bank chief.

HDFC Bank Managing Director and CEO Sashidhar Jagdishan followed with a remuneration of Rs 15.17 crore, up 25.7 percent from Rs 12.06 crore a year earlier. Axis Bank Managing Director and CEO Amitabh Chaudhry received Rs 10.30 crore in FY26, marking a 13.5 percent increase from Rs 9.08 crore in the previous year, while ICICI Bank Managing Director and CEO Sandeep Bakshi's compensation rose 1.56 percent to Rs 10.64 crore from Rs 10.48 crore.

Among private sector banks, Kotak Mahindra Bank Managing Director and CEO Ashok Vaswani emerged as the highest-paid executive, drawing Rs 17.24 crore in FY26, a 33 percent increase from Rs 12.96 crore in FY25. The increase was driven by a Rs 3.2 crore bonus and stock options worth Rs 6.68 crore.

The contrast with public sector banks remained stark. Of the 10 PSU banks, eight have released their annual reports, while Central Bank of India and Punjab and Sind Bank are yet to do so. The combined remuneration of the chiefs of these eight banks stood at Rs 5.8 crore in FY26, less than one-third of Ashok Vaswani's FY26 remuneration alone.

Indian Bank Managing Director and CEO Brajesh Kumar Singh was the highest-paid PSU bank chief, receiving Rs 73.36 lakh in FY26, up 98 percent from Rs 36.9 lakh a year earlier, largely due to higher "other compensation" during the year. Bank of Baroda Managing Director and CEO Debadatta Chand followed with Rs 73.16 lakh, although his remuneration declined 1 percent from Rs 73.93 lakh in the previous year.

UCO Bank Managing Director and CEO Ashwani Kumar received Rs 66.63 lakh in FY26, up 33 percent from Rs 49.85 lakh a year earlier. Indian Overseas Bank Managing Director and CEO Ajay Kumar Srivastava earned Rs 66.56 lakh, a 3.33 percent increase from Rs 64.41 lakh. Bank of Maharashtra Managing Director and CEO Nidhu Saxena's remuneration rose more than 70 percent to Rs 65.19 lakh from Rs 38.15 lakh, primarily due to a higher bonus.

Bank of India Managing Director and CEO Rajneesh Karnatak's remuneration increased nearly 20 percent to Rs 62.95 lakh from Rs 52.7 lakh, while State Bank of India Chairman CS Setty remained the lowest-paid among PSU bank chiefs, receiving Rs 43.2 lakh despite a 60 percent increase from Rs 26.98 lakh a year earlier.

The pay disparity between private and public sector banks has existed for years and extends across employee ranks. Within PSU banks, pay differences have also widened following the lateral hiring of executives from private sector lenders at higher salaries.

Salaries of PSU bank chiefs are linked to government pay grades and civil service structures, whereas private sector bank compensation includes performance-linked bonuses, profit-sharing and Employee Stock Ownership Plans (ESOPs), resulting in substantially higher payouts. PSU bank chiefs are not eligible for such incentives. However, they receive government accommodation at prime locations, the value of which is not included in their remuneration, a benefit unavailable to private bank chiefs.

HDFC Bank Managing Director and CEO Sashidhar Jagdishan followed with a remuneration of Rs 15.17 crore, up 25.7 percent from Rs 12.06 crore a year earlier. Axis Bank Managing Director and CEO Amitabh Chaudhry received Rs 10.30 crore in FY26, marking a 13.5 percent increase from Rs 9.08 crore in the previous year, while ICICI Bank Managing Director and CEO Sandeep Bakshi's compensation rose 1.56 percent to Rs 10.64 crore from Rs 10.48 crore.

 Report by Ravindra Sonavani 

Source: moneycontrol 

21/07/26, FinancialMarket Updates

Indian benchmark indices are likely to see a weak opening on July 21, with GIFT Nifty was trading lower at around 24,141 in early trade.

Indian equity benchmarks ended lower on July 20, weighed down by heavy selling in private banking stocks after their June-quarter earnings and weak global cues amid escalating geopolitical tensions in the Middle East.

At close, the Sensex was down 442.93 points or 0.57 percent at 77,708.52, and the Nifty was down 95.80 points or 0.39 percent at 24,238.50.

Here is how financial markets across the globe fared overnight:

GIFT Nifty (Slips)

GIFT Nifty was trading lower at around 24,141 in early trade, indicating a weak opening start for the domestic equity markets.

Asian Equities (Rise)

Asian equities advanced after three days of losses as a selloff in chip stocks eased ahead of megacap tech earnings this week.

US Equities (Fall)

Wall Street's three major indexes finished lower on ​Monday while investors looked for moves toward Middle East de-escalation and waited for earnings reports due from major technology companies later in the week.

The Dow Jones Industrial Average fell 307.16 points, or 0.59%, to 51,839.26, the ​S&P 500 lost 14.41 points, or 0.19%, ​to 7,443.28 and the Nasdaq Composite lost ⁠12.17 points, or 0.05%, to 25,508.07.

Dollar Index (Flat)

The U.S. dollar hovered near a one-week high on Tuesday, with markets torn between conflicting Middle East signals, as hostilities in the region stoked renewed fears over energy supplies while hopes for a ceasefire offered some relief.

US Bond Yield (Flat)

The yield on 10-year Treasuries and 2-year Treasuries were little changed at 4.58% and 4.20%, respectively.

Asian Currencies (Mixed)

Asian currencies traded on a mixed note against the US dollar. The Malaysian ringgit emerged as the top performer, gaining 0.108%, followed by the Chinese renminbi, which advanced 0.087%. The Singapore dollar edged up 0.023%, while the Philippine peso was largely unchanged with a marginal gain of 0.006%. The Japanese yen remained flat.

On the downside, the South Korean won was the weakest currency in the region, declining 0.264%, followed by the Indonesian rupiah, which slipped 0.15%. The Taiwan dollar fell 0.081%, while the Thai baht eased 0.056%.

Crude (Slips)

Oil prices softened on Tuesday, with markets weighing reports of mediation efforts between the U.S. and Iran against an exchange of fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen's Houthis.

Gold (Gains)

Gold was steady as traders monitored a raft of developments in the Middle East conflict for clues on the energy price impact on inflation.

Fund Flow Action

On July 20, Foreign institutional investors (FIIs) sold Indian equities worth Rs 1121 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 1,312 crore.

Hope you're all set for today's trade. We wish you a profitable day ahead.

Report by Rakesh Patil 

Source:Network28