Sensex, Nifty Stage A Recovery As Banks Make A Strong Comeback
Indian equity benchmarks reversed losses made in the first half of the session to snap a two-session losing streak.
The S&P BSE Sensex rose 0.8% to 48,080, after dropping by as much as 1.1%. The measure has lost about 9% from its recent peak on Feb. 15, nearing losses read as a technical correction.
The outlook for Indian assets is turning bearish as spiking infections prompt cities from the financial hub Mumbai to the national capital New Delhi to bring in stringent restrictions on the movement of people. India, which has the world’s second-largest outbreak, reported 314,835 new cases Thursday.
The NSE Nifty 50 Index closed nearly 0.8% higher as well after earlier falling 1%. Sentiment among global investors toward India has been souring. Global funds have sold a net $716 million of local stocks in April after a six-month buying spree, helping make Sensex this month’s biggest loser in Asia.
Fourteen of the 19 sector sub-indices compiled by BSE Ltd. gained, led by a gauge of lenders. ICICI Bank Ltd. and HDFC were the biggest gainers on the Sensex while Titan and Unilver dragged the most.
The rupee was little changed at 74.95 per dollar, paring a decline of as much as 0.6% Thursday, It is down 2.5% this month in Asia’s worst performance.
Petronet LNG Shares Up Most in Six Months; Call Options Triple
Petronet LNG Ltd. rose 4.5%, more than any full-day gain since Oct. 22.
- Trading volume was 4.92 million shares, double the 20-day average of 2.41 million shares for this time of day.
- Trading in the company's call options totalled 2,575 contracts, compared with the average of 825 over the past 20 days. Trading in the company's put options totalled 738 contracts, compared with the average of 367 over the same period.
- One-month implied volatility was 32%.
- Petronet LNG trades at 13 times its estimated earnings per share for the coming year. It trades at 12 times trailing EPS.
- Analysts have 33 buy, seven hold, and no sell recommendations on the stock.
- The price target of 306.89 rupees represents a 34% increase from the last price