Sensex, Nifty Cap Weekly Gains As RBI Lowers Growth Outlook
Indian equity benchmarks declined as the central bank kept borrowing costs at a record low level and lowered its economic growth projection.
The S&P BSE Sensex slid 0.2% to 52,100.05, paring gains of as much as 0.3%, but closed the week 1.3% higher. The NSE Nifty 50 fell 0.13% at 15,670.25, capping its weekly advance to 1.5%.
The broader market outperformed their larger peers. The S&P BSE MidCap gained 0.63% and S&P BSE SmallCap advanced 0.78%. Fourteen of the 19 sector sub-indices compiled by BSE Ltd. advanced, led by a gauge of industrials. The S&P BankEx was the worst performer, down 0.95%.
The market breadth was slightly skewed in favour of the bulls. About 1,877 stocks gained, 1,300 declined and 146 remained unchanged.
Meanwhile, the combined value of all shares traded in India rose above $3 trillion for the first time, according to Bloomberg. India’s market value surpassed Germany’s last month and is now nipping at the heels of Canada and France.
Indiabulls Housing Shares Jump For A Third Day
The non-banking finance company rose as much as 9.7% on heavy volumes.
- Trading volume was 38.4 million shares, double the 20-day average of 16.9 million shares for this time of day.
- Trading in the company's call options totalled 26,012 contracts, compared with the average of 11,578 over the past 20 days. Trading in the company's put options totalled 6,721 contracts, compared with the average of 3,383 over the same period.
- The relative strength index on the stock was above 70, indicating it may be overbought.
- Indiabulls Housing trades at 9.1 times its estimated earnings per share for the coming year. It trades at 8.9 times trailing EPS.
- Analysts have two buy, no hold, and one sell recommendations on the stock.
- The price target of Rs 185 represents a 25% decrease from the last price
Bajaj Finserv, Grasim, ONGC in Focus: Options Watch
- Grasim options volume 2.9x the 20-day average, with 22,997 calls changing hands vs 4,436 puts
- Stock up 2.9%, volume 1.1x the 20-day average for this time of day
- ONGC options volume 2.5x the average, with 27,757 calls vs 7,189 puts
- Stock up 2.5%, volume 2.2x the average
- Bajaj Finserv options volume 1.7x the average, with 9,407 calls vs 2,401 puts
- Stock up 2.4%, volume 0.9x the average
- Nifty 50 options volume 0.4x the average, with 3.55 million calls vs 3.41 million puts; gauge down 0.2%
- Cost of hedging as measured by the 90/110, one-month skew ranks in the 97th percentile over the past year
ONGC Shares Best On Sensex This Week
Shares of Oil & Natural Gas Corp. gained for the sixth straight session, making them the best on Sensex this week, as JPMorgan retained its bullish stance on the oil explorer, citing its attractive risk-reward ratio.
JPMorgan sees a large consensus earnings upgrade cycle ahead for ONGC as three key parts of its business — India operations, overseas assets in ONGC Videsh Ltd., and India gas — are all levered to oil prices.
To read the full report here.
Gujarat State Petronet Surges After Profit Beats Estimates
Gujarat State Petronet Ltd. shares climb after company’s quarterly profit beat analysts estimates, mainly helped by lower financing costs.
- Q4 net profit stood at Rs 206 crore, beating consensus estimate of Rs 195 crore
- Finance costs fell 50% YoY to Rs 17.37 crore, ICICI Securities analysts Vidyadhar Ginde and Aksh Vashishth write in a note, noting the drop helped offset a drop in transmission volumes and tariffs of 8% and 14% YoY respectively
- While rising spot LNG prices and impact of Covid-19 on customers’ businesses are headwinds, volumes at co.’s unit Gujarat Gas Ltd., which supplies piped natural gas to residential customers, remain steady
- Shares of Gujarat Gas have risen 57% this year, outperforming ~36% rise in parent
- ICICI Securities retains buy rating while raising the price target by 16% to Rs 368, reflecting the performance of Gujarat Gas