Sensex, Nifty Log Second Weekly Loss Amid Global Virus Worries
India stock benchmarks registered their a second weekly decline as worries return over the global economic recovery amid the spread of Covid-19 variants.
The S&P BSE Sensex fell 0.3% to 52,386.19 while the NSE Nifty 50 Index declined 0.2% to 15,689.80. Both the indices clocked a 0.2% weekly loss.
Information-technology bellwether Tata Consultancy kicked off corporate-earnings reporting for the June quarter Thursday, and missed analysts’ estimates for profit and revenue as the deadly wave of coronavirus infections in India hurt its domestic business. The company’s shares ended 1.5% lower, and was among prominent contributors to the Sensex's decline.
The broader markets outperformed their larger peers. The S&P BSE MidCap rose 0.6% while the S&P BSE SmallCap gained 0.4%. Ten of the 19 sector sub-indexes compiled by BSE Ltd. climbed, led by a gauge of real estate companies, followed by metal makers.
“Domestic equities continue to look soft due to weak global cues as of now,” Binod Modi, head of strategy at Reliance Securities, said in a note. He expects investors to focus on progress of southwest monsoon in the country as well as quarterly earnings and Covid-19 related situation in the term.
Oracle Financial Gains On Back Of New Deals
Shares of Oracle Financial Services Software Ltd. gained on the back of new deals.
The stock rose as much as 5% in the afternoon trade on Friday, and more than 8% for the week.
A subsidiary of Oracle Corporation, Oracle Financial Services is a technology solutions provider for banking and insurance industry. It has announced 58 unique deals in FY21 against 51 in the entire FY20. Most of the deals were in corporate banking solutions and analytics.
According to Dolat Capital, Q1 FY22 would be a key quarter to take note of as it’s seasonally the best for Oracle Financial Services in terms of new licence wins as well as growth. The brokerage maintained the company as its preferred pick with a ‘buy’ rating and target price of Rs 4,000 apiece.
Key tweaks around the BFSI segment, rising focus on digitization and cloud shift, gaining preference for data analytics augured well for the company. The use of artificial intelligence and machine learning as key principles in product development are being viewed as an advantage, Dolat said.
Bajaj Finserv, Divi's Labs in Focus: Options Watch
Tata Consultancy options volume 4.1x the 20-day average, with 150,814 calls changing hands vs 76,889 puts
Stock down 1.5%, volume 2.5x the 20-day average for this time of day
Bajaj Finserv options volume 3.5x the average, with 29,612 calls vs 9,465 puts
Stock up 4.3%, volume 2.2x the average
Divi's Labs options volume 1.5x the average, with 11,878 calls vs 3,535 puts
Stock up 2.2%, volume 0.9x the average
Nifty 50 options volume 0.6x the average, with 4.82 million calls vs 4.29 million puts; gauge down 0.2%
Cost of hedging as measured by the 90/110, one-month skew ranks in the 56th percentile over the past year
Nifty Bank index options volume 0.5x the average, with 7.94 million calls vs 7.88 million puts; gauge down 0.6%
90/110, one-month skew in the 42nd percentile
India VIX Index down 3.2%
Indian stock benchmarks are on course for weekly losses amid the decline in global markets. The NSE Nifty50 slipped over 0.3% to trade below 15,700 level. The S&P BSE Sensex shed nearly 200 points and hovered around 52,400 mark.
Broader markets rallied with Nifty Midcap (+0.32%) and Nifty Smallcap (+0.31%) extending their outperformance over Nifty (-0.32%). Among sectors, Nifty Realty (+1.51%), Nifty Metal (+0.97%), Nifty Media (+0.65%), Nifty Pharma (+0.33) gained.
Banking stocks slipped with Axis Bank (-1.25%). HDFC Bank (0.80%) and ICICI Bank (-0.74%) leading the decline.
Shares of TCS fell over 1.28% to Rs. 3,216.84 after it posted its Q1FY22 earnings after markets hours on Thursday
Shares of Bajaj Finserv gained 3.37 to a new all-time high with the company’s market capitalisation crossing the Rs 2 lakh crore milestone. The stock added over 10% over the last month when compared to 0.8% gain for Sensex