Sensex, Nifty End At Day’s High; Reliance Industries Gains 7%

Indian equity markets snapped a two-day losing streak, ending the weekly options expiry session with strong gains, courtesy Reliance Industries Ltd.

The S&P BSE Sensex ended 1.7% higher at 38,840 while the NSE Nifty 50 index ended 1.55% or over 170 points higher at 11,449. Both Sensex and the Nifty saw their biggest single-day gain in over a month.

Gains were primarily led by Reliance Industries, which ended as the top gainer on the Nifty, ending with gains of 7.3%. This was the biggest single-day gain for the stock in nearly five months. The stock contributed 118 points to the total gains on the Nifty index.

The Nifty Bank had a volatile day but managed to snap a five-day losing streak, ending with gains of 0.9%. The PSU Bank index was the top sectoral gainer, ending 2.5% higher and snapping an eight-day losing streak, which was the longest since December 2015.

The Metal index was the top sectoral laggard, ending with losses of over 1%, led by declines in Hindalco and Tata Steel.

Broader markets too finished with gains in today's session. The midcap index gained 1.2% while the smallcap index gained 1.6%.

The India Volatility Index ended 4.3% lower at 21.27.

1,286 stocks on the NSE ended with gains while 528 stocks posted losses.

• Top gainer on the Nifty Midcap index
• Top gainer on the Nifty PSU Bank index
• Gains as much as 7.8% to Rs 48.85
• Biggest single day gain in three months
• Snaps seven-day losing streak
• The seven-day losing streak was the longest in six months
• Today's volumes are 54% below its 20-day average
• Trades near its 50-Day Moving Average of 48.4
• Has gained more than 50% from its 52-week low of Rs 30.4 on March 13, 2020, but remains 38% lower than its 52-week high of Rs 79.8 on November 28, 2019
• 1 out of the 12 analysts tracking the stock has a buy recommendation; 10 sell calls
• The stock trades 22.9% higher than its 12-month consensus price target of Rs 37.5, implying a negative return potential

Indian Oil:

• Gains as much as 3.9% to Rs 83.7
• Biggest single-day gain in over a month
• Has gained only thrice in the last 14 trading sessions
• Gains on volumes that are 31% higher than its 20-day average
• Heading towards its 100-Day Moving Average of 84.8
• 30 out of the 38 analysts tracking the stock have a buy recommendation; 2 sell calls
• Return potential of the stock as per Bloomberg data is 40.2%

HPCL:

• Gains as much as 4.4% to Rs 202.2
• Has gained in three out of the last four trading sessions
• Gains on volumes that are 56% higher than its 20-day average
• 34 out of the 40 analysts tracking the stock have a buy recommendation; 1 sell call
• Return potential of the stock as per Bloomberg data is 38.3%

• Benchmark indices hold on to gains
• Nifty up 1% at 11,392
• Sensex up 1.2% at 38,657
• Nifty Bank off day's high; up 0.4% at 22,352
• Nifty Midcap index up 0.6%
• Nifty Smallcap index up 1.3%
• India Volatility Index down 3.7% to 21.41
• Nifty PSU Bank is the top sectoral gainer; up 1.8%
• Nifty Media is the other sectoral gainer; up 1.5%
• Nifty Metal extends losses as the top sectoral laggard; down 2.1%
• Reliance Industries remains the top Nifty gainer; up 7.2%
• Bharti Infratel remains the top Nifty laggard; down 4.3%
• 1,209 stocks on the NSE trade with gains while 557 decline

The rupee managed to end with gains for the second straight day, despite witnessing a significant reversal from the day's high.

The currency ended at 73.46 against the U.S. Dollar as compared to Wednesday's close of 73.54.

The rupee had made an intraday high of 73.15, before paring gains after some traders told Bloomberg that the banks had purchased U.S. Dollars during the course of trade.

Five other currencies managed to outperform the rupee in today's trading session.

Yield on the 10-year government bond ended at 6.053% as compared to Wednesday's close of 5.993%.

The Reserve Bank of India bought bonds worth Rs 10,000 crore at the special Open Market Operation conducted today and sold an almost equivalent amount of treasury bills.

• Second best performer on the Nifty 50 index
• Gains as much as 5% to Rs 426
• Biggest single-day gain in over a month
• Trades at the highest level in a month
• Today's volumes are 85% higher than it 20-day average
• Breaks above its 200 and 50-Day Moving Average at 408.8 and 413.2 respectively
• Has gained more than 50% from its 52-week low of Rs 252 on March 24, 2020 but remains 22% below its 52-week high of Rs 549.7 on November 21, 2019
• 33 out of the 40 analysts tracking the stock have a buy recommendation; one sell call
• Return potential of the stock as per Bloomberg data is 8.6%

The company has informed the exchanges that it has sold part of its stake in OakNorth Holding - the wholly-owning parent company of OakNorth Bank to HighSage Ventures.

The stake has been sold for Rs 440 crore, proceeds fo which will be accretive to the regulatory networth and CRAR of the company, it said in an exchange filing.

The company had invested Rs 663 crore in OakNorth Bank in November 2015, for a 40% stake.

Shares fell as much as 3.5% to Rs 194.3, post the announcement. The stock trades lower for the second straight day.

• Nifty September futures add 15.7% and 20,638 shares in Open Interest.
• Nifty Bank September futures add 12.9% and 7,813 shares in Open Interest.

Nifty: Today's Expiry

• 11,400 Call: Premium up 28.8% to Rs 12.3. The contract has added 28,326 shares in Open Interest.
• 11,450 Call: Premium down 59.3% to Rs 1.75. The contract has added 52,521 shares in Open Interest.
• 11,300 Put: Premium down 96.7% to Rs 1.6. The contract has added 86,781 shares in Open Interest.

Nifty Bank: Today's Expiry

• 24,000 Call: Premium down 95% to Rs 0.35. The contract has added 14,471 shares in Open Interest.
• 22,700 Call: Premium down 86% to Rs 6.45. The contract has added 70,538 shares in Open Interest.
• 22,600 Call: Premium down 77.3% to Rs 14.9. The contract has added 66,527 shares in Open Interest.

• Among the top performers on the Nifty 500 index
• Gains as much as 11% to Rs 291.9
• Biggest single-day gain in over a month
• Up for the second straight day
• Snapped a five-day losing streak on Wednesday
• Today's volumes are 92% higher than its 20-day average
• Trading at a premium of 56% as compared to peers on a blended forward price-to-earnings basis
• Rebounds from support at 50-Day Moving Average of 241
• Motilal Oswal maintained its buy rating on the stock with a price target of Rs 314
• Currently trading 12% below its 52-week high of Rs 318.75 which it made on August 21, 2020
• All 13 analysts tracking the stock have a buy recommendation
• The stock trades 6.5% higher than its 12-month consensus price target of Rs 261.9, implying a negative return potential

Benchmark indices in Europe have opened little changed ahead of the policy announcement from the European Central Bank later this evening.

The Stoxx 600 index opened 0.1% higher led by chemical and travel stocks. Miners and telecom stocks were the top laggards.

Asian markets have ended mixed while futures on the Dow Jones are trading lower by 30 points.

Brent crude trades 0.25% lower at $40.69 per barrel while Gold trades little changed at $1,944.7/Oz.

Let's take a look at how benchmark indices in Europe have opened:

• Euro Stoxx 50 unchanged at 3,323
• DAX up 0.1% at 13,247
• CAC down 0.1% at 5,038
• FTSE 100 down 0.2% at 6,003
• IBEX 35 down 0.15% at 7,010