Why Is The Indian Stock Market Trading In A Narrow Range?

Why Is The Indian Stock Market Trading In A Narrow Range?

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Two Strategies, which are vital in deciding the stock market movement.

Two key strategies were identified-- one involved buying heavily in Bank Nifty stocks and futures in the morning and selling them aggressively in the afternoon to create a softer close, while the other involved concentrated selling or buying in the last two hours of the expiry day to sway index levels.

These actions helped the group earn illegal profits of about Rs 4,843 crore, even as they incurred smaller losses in cash and futures trades, the regulator said.

Sebi also noted that between January 2023 and March 2025, the JS Group recorded substantial trading activity across various segments of the market. The group made gains of Rs 44,358 crore from index options trading, which formed the bulk of their profits.

However, these were partially offset by losses of Rs 7,208 crore in stock futures, Rs 191 crore in index futures, and Rs 288 crore in the cash market. After accounting for all gains and losses, the JS Group reported a net total profit of Rs 36,671 crore during this period, Sebi noted.

"It appears that the incorporation of the JSI Investments Private Limited in India enabled the JS Group to work around the regulatory prohibition in FPI Regulations against FPIs undertaking intraday cash market transactions, and thereby execute the manipulative scheme without specifically flouting the FPI regulations," Sebi said.

"Much of the enormous amount of trading and position taking in F&O by the JS Group have been undertaken by FPIs in the JS Group, and much of the profits arising from the prima facie manipulative schemes as identified in the 21 instances ...have also been booked by them," it said.

During the examination period, the net profits booked in the FPIs in the JS Group amounted to Rs 32,681 crore.

"The magnitude of this profit is significantly higher than the average quantum of assets held by these FPIs in India as of the month ends between January and May 2025, indicating that these profits have been repatriated," it added.