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Msei share price(target for 400+) | MSEI(ipo listing) | Msei news | SX40 INDEX

  • Author: Profitaxis
  • Published On: January 26, 2025
  • Category:Latest News
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Metropolitan Stock Exchange (MSCI)

Insights, Analysis, and Updates on MSCI and A4 Index

Introduction to MSCI

SEBI has launched a new exchange called Metropolitan Stock Exchange (MSCI) from January. Similar to how Nifty has Bank Nifty, MSCI introduces a new index named A4. This index tracks the market trends and performance of companies listed on MSCI.

Currently, MSCI shares are unlisted but trade in the gray market. Live charts show its trading journey today, starting at ₹1. Brokers have shown significant activity, leading many investors to wonder if they should hold or sell.

The A4 Index

The A4 index is a benchmark for the Metropolitan Stock Exchange, offering insights into its market trends. Live charts reveal daily fluctuations, with brokers and institutional investors actively participating in the exchange. As of today, MSCI stock traded around ₹1, with a significant lot size of 10,000 quantities.

While MSCI’s IPO date remains unconfirmed, market analysts predict a strong long-term potential. Investors holding MSCI shares for 5–10 years could see returns exceeding ₹200–₹300, with some optimistic projections reaching ₹6,000 within a decade.

MSCI IPO Updates

Many investors are curious about the IPO date for MSCI. As of now, SEBI has not announced a confirmed date, but rumors suggest it could be around February 20th. Currently, MSCI shares trade in the gray market, making it challenging to find on platforms like Zerodha or Groww.

It’s essential to note that MSCI is still an unlisted share, with institutional brokers investing ₹200 crores into the exchange. The market capitalization is approximately ₹6,600 crores, and its 52-week high and low show significant growth potential.

Investment Insights

  • Investors who bought MSCI shares around ₹1 during its low point are holding a potential lottery ticket for massive returns.
  • For those unsure about long-term holding, selling half the quantity (e.g., 250 out of 500 shares) is a safe approach.
  • Analysts recommend holding MSCI shares for 5–10 years, as the company’s fundamentals and technical indicators suggest strong growth.
  • Short-term fluctuations are expected, but the long-term outlook is optimistic, with projections exceeding ₹200 or more per share.

Current Market Challenges

One of the key challenges is the lack of active sellers and buyers, causing delays in the market listing. Brokers and investors are eagerly waiting for MSCI to appear on NSE and BSE. SEBI suggests that IPO listings for unlisted shares like MSCI might take up to six months or longer.

Target Projections for MSCI

MSCI’s target projections for 2030 are highly promising, with estimates ranging from ₹200 to ₹6,000. Institutional investors have expressed confidence in the exchange, adding to its credibility.

Whether you are an investor looking for short-term gains or a long-term holder, MSCI offers a unique opportunity. Its unlisted status and growing market presence make it a potential game-changer in the stock exchange landscape.

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What is MSC and SX40?

MSC (Metropolitan Stock Exchange of India) is the third major stock exchange in India, after NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). It primarily facilitates trading in:

  • Currency derivatives
  • Debt instruments

Recently, MSC has gained attention due to investments from brokers like Groww and Rose through AAM.

SX40 Index:

The SX40 index is MSC's flagship index, consisting of 40 large-cap companies across various sectors. It is similar to NSE's Nifty 50 and BSE's Sensex, but with its own set of constituent companies.

  • Finance Sector Weightage: 34.1%
  • Manufacturing Sector: Second highest weightage

Key Changes in SX40 Derivatives:

  • Lot Size Update: Initially 25 contracts, now revised to 40 contracts due to SEBI’s new regulation.
  • Expiry Day Changes: Weekly expiry moved from Thursday to Friday, and monthly expiry shifted to the last Friday of each month.

This update aligns MSC's SX40 expiry with the following schedule:

  • Tuesday: Weekly expiry of Sensex (BSE).
  • Thursday: Weekly expiry of Nifty 50 (NSE).
  • Friday: Weekly expiry of SX40 (MSC).

SX40 Option Chain and Current Trading Status:

Currently, the derivatives market for SX40 faces significant challenges.

Conclusion

2025 promises to be an exciting year for IPO investors, with JSW Cement, Vikram Solar, and SDB Financials leading the charge. Additionally, developments in MSC and SX40 highlight the evolving landscape of the Indian financial markets. With robust market buzz and promising fundamentals, these opportunities could provide lucrative returns. Stay informed and keep an eye on announcements to make timely investment decisions.

Let us know in the comments which of these IPOs or market updates you’re most excited about, and don’t forget to follow our updates for the latest news!

Option Chain Observations

Zero Open Interest (OI)

No active contracts are visible in the option chain.

Zero Volume

No trades have been executed yet.

No Bid-Ask Spread

There are no active buyers or sellers.

Possible Reasons for Inactivity

  • Lack of Broker Support: Major brokers like Zerodha, Upstox, and Groww have not yet integrated MSC trading instruments into their platforms.
  • Liquidity Issues: Without active participants, traders face difficulty in executing buy or sell orders.

Future Prospects

The lack of trading activity may be temporary. With top brokers investing in MSC, they might soon introduce SX40 trading instruments on their platforms.

Once trading becomes accessible, liquidity and participation are expected to improve, potentially making SX40 a viable index for derivatives trading.

Steps to Trade in SX40

Become a Trading Member:

  • Obtain membership from the stock exchange.
  • Significant capital, net worth requirements, and approvals from SEBI are needed.

Trade via a Broker:

  • Most retail investors opt for this route, using brokers like Zerodha, Upstox, or Groww.
  • Place orders through a broker who is a member of the stock exchange.

Trading Derivatives in SX40 on MSC

Liquidity Issues:

  • Open Interest (OI) and Volume: Both metrics are currently at zero, indicating minimal activity.
  • Lack of Buyers and Sellers: This makes it difficult to execute trades, as you need a counterparty.

Broker Availability:

  • Popular brokers like Zerodha, Upstox, and Kotak do not yet offer SX40 or MSC trading options on their platforms.
  • A few lesser-known local brokers might provide access, but they are not widely recognized.

Key Considerations for Retail Investors

  • Liquidity Risk: Even if you find a broker or become a trading member, executing trades might remain challenging due to low market activity.
  • Broker Support: Wait for mainstream brokers to integrate MSC trading instruments into their platforms.
  • Costs and Regulations: Becoming a trading member involves significant costs and regulatory approvals, which might not be feasible for retail traders.

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