Sensex Snaps Three-Day Losing Streak; CDSL Surges
India's stock benchmark snapped a three session losing streak as investors assessed positive economic data and the ongoing earnings season.
The S&P BSE Sensex rose 0.76% to 52,769.73, and the NSE Nifty 50 Index advanced 0.76% to 15,812.35. ICICI Bank Ltd. contributed the most to the index gain and had the largest move, increasing 2.9%.
The broader markets underperformed their larger peers. The S&P BSE MidCap was little changed while the S&P BSE SmallCap advanced 0.46%. Fifteen of the 19 sectoral indices climbed, led by the S&P BSE Bankex index, up 1.41%.
The market breadth was skewed in favour of the bulls. About 1,863 stocks advanced, 1,352 declined and 140 remained unchanged on the BSE.
India’s consumer prices rose slower-than-expected in June, which allows the country’s inflation-targeting central bank to stay focused on supporting economic growth. With earnings season underway, investors will turn their attention to Infosys’s results that are expected to be posted on Wednesday.
The Biggest Earnings Upgrades And Downgrades This Fiscal
India Approves Sale Of LIC In Mega IPO
India approved the sale of shares in state-run insurer Life Insurance Corp. of India, a key step in moving ahead with the mega-listing.
The cabinet committee on economic affairs cleared the initial public offering proposal, according to Disinvestment Secretary Tuhin Kanta Pandey. A group of ministers will now decide on various issues related to the proposed offering, he said.
The mega-IPO of the country’s biggest insurer is expected to happen as soon as March 2022. The government, which owns 100% in LIC, will next determine the embedded value of the company to determine the stake sale details, including the amount and price band.
Brightcom Group Locked In Upper Circuit
Shares of Brightcom Group were locked in 5% upper circuit ahead of today’s board meeting on preferential issue of equity shares.
Shares of the India-based digital marketing company have gained nearly 172% over the past month with the stock being frozen in upper circuit for 17 successive sessions on the BSE.
Brightcom Group also announced the signing of Letter of Intent to acquire a domestic digital marketing services company on July 9. The details of the company targeted for acquisition are yet to be revealed.
The company’s board will discuss the LoI of the acquisition as well as the preferential issue of shares to select individuals and entities in the meeting scheduled later today.
Grasim, ICICI Bank, NTPC, Sun Pharma in Focus: Options Watch
NTPC options volume 2.6x the 20-day average, with 28,477 calls changing hands vs 4,683 puts
Stock up 1.8%, volume 1.2x the 20-day average for this time of day
Sun Pharma options volume 2.3x the average, with 22,975 calls vs 6,867 puts
Stock up 2.6%, volume 1.8x the average
ICICI Bank options volume 1.8x the average, with 41,496 calls vs 19,429 puts
Stock up 2.6%, volume 1.1x the average
Grasim options volume 1.7x the average, with 11,383 calls vs 3,873 puts
Stock up 1.4%, volume 1.2x the average
Nifty 50 options volume 0.5x the average, with 4.2 million calls vs 3.78 million puts; gauge up 0.7%
Cost of hedging as measured by the 90/110, one-month skew ranks in the 15th percentile over the past year
Nifty Bank index options volume 0.5x the average, with 7.99 million calls vs 6.9 million puts; gauge up 1.2%
90/110, one-month skew in the 64th percentile
India VIX Index down 2.5%