Sensex, Nifty Recover After Falling For Four Consecutive Trading Sessions

Indian equities ended higher, halting their four-day losing streak.

The S&P BSE Sensex rose 1.05 percent or 429 points to close at 41,323 and the NSE Nifty 50 rose 1.15 percent to end at 12,125.90. The broader markets represented by the NSE Nifty 500 Index rose 1.3 percent.

The market breadth was tilted in favour of buyers. About 1,175 stocks advanced and 618 shares declined on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Pharma Index’s 2.3 percent gain.

Aurobindo Pharma

• Shares jump the most in over 12 years.
• The drugmaker received the Establishment Inspection Report with Voluntary Action Initiated status from U.S. FDA after the inspection of Unit IV, a general injectable formulation manufacturing facility of the company, according to its statement to the exchanges.

Torrent Pharma

• Fresh longs seen with high open interest of 34 percent.
• Trading volume was 2.5 times its 20-day average.

Voltas

• Stock set for longest winning streak in four months
• Shares jump 30 percent so far this year.

Nippon Life India Asset Management

• Shares rose as much as 7.6 percent, the most since Nov. 13, 2019, to hit an all-time high at Rs 421.90.

Hathway Cable & Datacom

• Stock rose as much as 14 percent to Rs 26.35.
• Trading volume was more than 20 times its 20-day average.

DEN Networks

• Stock rose as much as 10 percent to Rs 65.50.
• Trading volume was 14 times its 20-day average.

Shree Cement

• Stock rose as much as 6 percent to Rs 25,199.
• Trading volume was almost seven times its 20-day average.

IIFL Wealth Management

• Stock rose as much as 6.4 percent to Rs 1,663.95.
• Trading volume was almost seven times its 20-day average.

Stocks in Europe rose with U.S. equity futures on Wednesday after signs China may be planning further measures to support parts of its economy reeling from a virus-induced slowdown.

• Futures on the S&P 500 Index advanced 0.2 percent as of 8:09 a.m. London time.
• The Stoxx Europe 600 Index advanced 0.3 percent.
• The MSCI Asia Pacific Index increased 0.3 percent.
• The MSCI Emerging Market Index advanced 0.5 percent.

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Source: Bloomberg

Shares of Sadbhav Engineering extended declines for the ninth consecutive trading session. The stock fell as much as 15.2 percent, the most since August 2019, to Rs 76, the lowest since March 2014.

The Relative Strength Index was below 30, indicating that the stock may be overbought, Bloomberg data showed. Trading volume was 10 times its 20-day average.

Shares of Hindustan Aeronautics halted their four-day losing streak. The stock rose as much as 11.4 percent, the most in over a year, to Rs 784.5.

Trading volume was more than 10 times its 20-day average, Bloomberg data showed. The scrip declined 1.2 percent in the past five days and declined 7 percent in the past 30 days.

Shares of Bharat Dynamics extended gains for the second consecutive trading session. The stock rose as much as 11.6 percent, the most since Oct. 29, 2019, to Rs 299.80.

Trading volume was more than seven times its 20-day average, Bloomberg data showed. The scrip traded at 11 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of Vodafone Idea rose as much as 48.3 percent, the most on record, to Rs 4.45.

“The government is unlikely to invoke Vodafone Idea’s bank guarantees for now, even as the officials of the telecom and finance ministries met Cabinet secretary Rajiv Gauba to discuss ways to ensure that the sector retains three private players,” Economic Times reported quoting officials.

Trading volume was more than three times its 20-day average, Bloomberg data showed. Of the shares traded, 58 percent were at the ask price and 41 were at the bid.

Shares of Nippon Life India Asset Management rose as much as 7.6 percent, the most since Nov. 13, 2019, to hit an all-time high at Rs 421.90.

The scrip extended gains for the second consecutive trading session. The stock traded at 40 times its estimated earnings per share compared to 24.5 times for the two-year historical average, according to Bloomberg data.

Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Pharma Index’s 2 percent advance. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 1 percent.

Nifty’s 12,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on Feb. 20, rose 51.95 percent to Rs 72.25. About 5.05 lakh shares were removed from the open interest which stood at over 10.9 lakh shares.

Shares of Gayatri Projects fell for the twenty eighth consecutive trading session. The stock hit its lower circuit of 5 percent at Rs 26.60, the lowest since March 2015.

The scrip is set for its longest losing streak on record. The Relative Strength Index was at 6, indicating that the stock may be oversold, Bloomberg data showed

Shares of Reliance Industries halted their two-day losing streak. The stock rose as much as 1.4 percent to Rs 1,487.95.

The Mukesh Ambani-led conglomerate is said to be in talks to sell a minority stake in its oil-to-chemical division to Saudi Aramco have been gathering pace in recent weeks, Bloomberg reported quoting people familiar with the matter.

The scrip returned 0.9 percent in the past five days and fell 6.2 percent in the past 30 days, according to Bloomberg data.

Shares of Kotak Mahindra Bank rose as much as 2.98 percent to Rs 1,740.

“The Reserve Bank of India has granted its final approval for Kotak Mahindra Bank’s proposal to dilute founders’ shareholding via a letter dated Feb. 18,” the lender said in a statement to the exchanges.

The stock traded at 36 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of Aurobindo Pharma rose as much as 18 percent, the most since January 2009, to Rs 590.20.

The drugmaker received the Establishment Inspection Report with Voluntary Action Initiated status from U.S. FDA after the inspection of Unit IV, a general injectable formulation manufacturing facility of the company, according to its statement to the exchanges.

Trading volume was almost 10 times its 20-day average, Bloomberg data showed. Of the shares traded, 43 percent were at the ask price and 38 percent were at the bid.

Indian equities opened higher, halting their four-day losing streak.

The S&P BSE Sensex rose as much as 0.9 percent to 41,276 and the NSE Nifty 50 rose as much as 0.96 percent to 12,107. The broader markets represented by the NSE Nifty 500 Index rose 0.85 percent.

All the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Pharma Index’s 1.9 percent gain.

Futures

• Nifty February futures closed at 12,019, premium of 27 points
• Nifty February futures open interest down 0.8 percent, sheds 1 lakh shares in open interest
• Nifty Bank Feb futures closed at 30,625, premium of 63 points
• Nifty Bank futures open interest down 1.7 percent, sheds 19,000 shares in open interest

Options

Nifty PCR at ** Vs 1.14 (across all series) – to update in the morning

Nifty Weekly Expiry: Feb 20

• Max open interest on call side at 12,100 (22.5 lakh shares)
• Max open interest on put side at 11,900 (18.8 lakh shares)
• Open Interest addition seen at 12,000C (+11.4 lakh shares), 11,900P (+7.4 lakh shares)
• Open Interest shedding seen at 12,200C (-7.8 lakh shares)

Nifty Monthly Expiry: Feb 27

• Max open interest on call side at 12,200 (28.2 lakh shares)
• Max open interest on put side at 12,000 (33.6 lakh shares)

Stocks In F&O Ban

• NCC
• Yes Bank