Looks like the market is going to start the week on a quiet note. Nifty futures are indicating a subdued opening, and Asian markets are mostly trading lower. Investors are keeping an eye on the ongoing trade talks with the US and the aftermath of the market regulator’s ban on Jane Street.
Indian drugmakers set to ride the GLP-1 wave
The buzz around GLP-1 drugs — used to manage blood sugar and support weight loss — is growing globally. Analysts at ICICI Securities say Indian contract manufacturers could benefit as Novo Nordisk’s semaglutide loses patent protection in Canada, Brazil, India and China early next year. With supply constraints restricting original makers, firms such as OneSource and Gland Pharma are better placed to seize the opportunity.
Low inflation may weigh on earnings: Jefferies
Worries over slippage in India’s growth estimates could stall the rally in local shares, according to strategists at Jefferies. They project India’s nominal GDP expansion to fall below 10% in the year to March, partly due to low inflation. While easing price pressures may support bond yields, it could dampen corporate revenue and credit expansion, factors that could trigger earnings-per-share downgrades and result in a “sideways equity market” through the rest of the fiscal year.
Rising household debt may delay consumption recovery
A recovery in India’s consumption may take longer to materialize, according to the central bank’s latest Financial Stability Report. A Nomura report highlights rising stress in microfinance and unsecured retail lending, with household borrowing increasingly tied to consumption-related loans. While borrower quality is improving, the share of housing loans is on the decline, the note says.
And, finally..
The recent curbs on Jane Street Group’s operations in India may further weigh on options market volumes, which have already been shrinking since November 2024 amid regulatory efforts to curb excessive speculation. Jefferies Financial Group noted that some of this decline could be mitigated by increased activity from other proprietary trading firms and high-frequency traders. Meanwhile, some market participants see a potential upside: Jane Street’s exit could encourage a resurgence of retail traders, who may feel more confident about their chances of profiting in a market under tighter oversight.
More stories like this are available on bloomberg.com
Published on July 7, 2025