The stock market for example is made up of investors and traders and the mistake that people make is when traders try to become investors and investors try to become traders.
Arbitrage funds are expected to be a beneficiary of the decision of taxing capital gains on investments in debt funds at slab rate without indexation. Recent derivative expiry notes released by mutual fund houses are vocal about optimism around the spot-futures arbitrage strategy.
Bond yields responded favourably to the monetary policy announcement when the RBI opted to hold the repo rate against the street expectation of 25 bps.