Sensex, Nifty Close Higher; UPL Jumps On CLSA’s Bullish Outlook
Indian stocks rose as investors shrugged off the rising number of virus cases to focus on positive global cues, the absence of nationwide curbs on business operations and the central bank’s liquidity support.
The S&P BSE Sensex advanced for a fourth day, rising 0.6% to 49,502.41, while the NSE Nifty 50 Index gained 0.8% to 14,942.35. Larsen & Toubro Ltd. contributed the most to the index gain, increasing 3.9%. Coal India Ltd. had the largest increase, rising 7.5%.
Eighteen of the 19 sector sub-indices compiled by BSE Ltd. climbed, led by a gauge of metal companies that’s surged to its highest level since 2008. The S&P BSE Information Technology was the only loser, down 0.17%.
Bandhan Bank Accelerates Shift Away From Group Micro-Lending
UPL Jumps After CLSA Says Positive Surprise Ahead
Shares of UPL Ltd. jumped as much as 7.2%, the most since March 30, after broking firm CLSA said the fertiliser maker is in for a positive surprise.
Favourable macro conditions and peer commentary point to a strong FY22 for UPL, according to CLSA. "2021 is set to continued improvement in spending on agricultural inputs, driven by better agronomic conditions, rising crop prices, a rebound in demand from China, and better farm sentiment."
UPL will report its earnings on May 12.
- Trading volume was more than double the 20-day average for this time of day.
- Trading in the company's call options totalled 26,712 contracts, compared with the average of 8,722 over the past 20 days. Trading in the company's put options totalled 5,434 contracts, compared with the average of 3,370 over the same period.
- Average price target: Rs 705.29 (5.4% upside from current price)
Coal India, Indian Oil, NTPC, UPL in Focus: Options Watch
- Coal India options volume 3.7x the 20-day average, with 27,209 calls changing hands vs 7,001 puts
- Stock up 5.5%, volume 2.7x the 20-day average for this time of day
- Indian Oil options volume 2.4x the average, with 11,588 calls vs 2,570 puts
- Stock up 3.7%, volume 1.6x the average
- UltraTech Cement options volume 2.2x the average, with 14,299 calls vs 4,022 puts
- Stock down 1.4%, volume 0.9x the average
- UPL options volume 1.9x the average, with 18,684 calls vs 3,773 puts
- Stock up 4.8%, volume 1.4x the average
- NTPC options volume 1.6x the average, with 8,622 calls vs 1,894 puts
- Stock up 1.5%, volume 0.9x the average
- Divi's Labs options volume 1.6x the average, with 13,962 calls vs 3,053 puts
- Stock up 3.7%, volume 0.9x the average
- Nifty 50 options volume 0.3x the average, with 2.98 million calls vs 2.97 million puts; gauge up 0.9%
- Cost of hedging as measured by the 90/110, one-month skew ranks in the 99th percentile over the past year
- Nifty Bank index options volume 0.3x the average, with 4.54 million calls vs 4.02 million puts; gauge up 0.9%
- 90/110, one-month skew in the 81st percentile
- India VIX Index down 2.3%
Torrent Pharma Leads Drugmakers' Rally
Torrent Pharmaceuticals Ltd. rose 5.9%, the most in more than nine months, compared with end-of-day price changes.
- Trading volume was almost quadruple the 20-day average for this time of day.
- Trading in the company's call options totalled 2,399 contracts, compared with the average of 717 over the past 20 days. Trading in the company's put options totalled 152 contracts, compared with the average of 59 over the same period.
- The relative strength index on the stock was above 70, indicating it may be overbought.
- Torrent Pharma trades at 39 times its estimated earnings per share for the coming year.