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Informist, Wednesday, Sep 25, 2024

By Anjana Therese Antony

MUMBAI – There were long bets in the options chain of Power Grid Corp of India after foreign broking firm Goldman Sachs reiterated its bullish view on the company. Premiums on out-of-the-money call options expiring Thursday rose, while those on put contracts declined. The brokerage retained its 'buy' rating on the stock with a target price of 370 rupees, higher than Wednesday's closing price of 363.75 rupees.

Goldman Sachs expects Power Grid to be the largest beneficiary of the estimated grid total addressable market of $500 bln between the financial year 2023-24 (Apr-Mar) and 2049-50, ET Now reported. The company is also expected to benefit from the government's upgradation of the transmission capital expenditure estimate to $110 bln.

In the Power Grid options chain, premiums on call options of 370-400 rupees expiring Thursday rose 100-900%, while those on 370-310 rupees of put options declined 50-71%. The maximum addition of open interest was at the 370-rupee call and 350-rupee put options. 

Gains in shares of Power Grid contributed to a nearly 0.1% rise in the Nifty 50 index, which ended nearly 0.3% higher at a record closing high of 26004.15 points. The BSE Sensex also ended 0.3% higher at a record closing high of 85169.87 points. The 50-stock index hit its all-time intraday high of 26032.80 points and the Sensex also reached a lifetime high of 85247.42 points.

Support for the index is pegged at 25980-25900 points and resistance is seen at 26100-26200 points ahead of the monthly expiry of futures and options contracts on Thursday, according to technical and derivatives analysts at different broking firms.

Investors are not expected to place aggressive bets in the absence of major triggers, which could keep the movement of the market muted or subdued, analysts said. While expensive valuations are also likely to cap gains of Indian equities in the short term, a robust earnings outlook, economic growth, and benign inflation are expected to keep India a good bet among emerging markets, analysts said.

Premiums on Nifty 50 call options of 26000-26600 strikes expiring Thursday declined 6-61% and those on 26000-25500 put options fell 53-75%. The maximum open interest addition is at 26000-point call and 25900-point put contracts. 

--Nifty 50 Sep closed at 26003.00, up 58.30 points; 1.15-point discount to spot index

--Nifty 50 Oct closed at 26130.90, up 49.55 points; 126.75-point premium to spot index

--Nifty 50 Nov closed at 26238.00, up 58.20 points; 233.85-point premium to spot index

HDFC Bank, Reliance Industries, ICICI Bank, State Bank of India, Vedanta, Punjab National Bank, Tata Motors, Infosys, NTPC, Kotak Mahindra Bank, Mahindra & Mahindra, Axis Bank, Tata Consultancy Services, Adani Enterprises, Tata Steel, and Maruti Suzuki India were the most-actively traded contracts.  End

Edited by Rajeev Pai

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