All the sectoral indices are trading in green, led by metal, energy, infra, IT, pharma, and auto.
Buzzing: Capacity Infraprojects shares gained 1.5 percent after Emkay initiated coverage with a buy call and target price at Rs 288, implying a 28 percent potential upside from current levels.
Suven Life Sciences secures product patents: Suven Life Sciences secured 1 product patent each from Eurasia, Europe, South Korea, and Sri Lanka corresponding to the New Chemical Entities for treating disorders associated with Neurodegenerative diseases, and patents are valid through 2034.
Zydus receives final approval from USFDA: Zydus Cadila has received the final approval from the USFDA to market Ambrisentan Tablets USP (US RLD —Letairis Tablets), 5 mg and l0 mg.
L&T announces new strategic initiative: Larsen and Toubro have announced a new strategic initiative, L&T-Next, to define the organization’s future from a fresh perspective. It has been identified as a select initiative in L&T’s five-year strategic plan.
Market Update: Benchmark indices erased all their early gains and trading at the day’s low point.
At 11:03 hrs IST, the Sensex is up 39.32 points at 38585.04, while the Nifty is up 15.30 points at 11585.30. About 1153 shares have advanced, 861 shares declined, and 130 are unchanged.
Highest Roll Spread
The Nifty is starting the new series with 16.9 million shares, which is relatively higher than the open interest seen at the inception of the last series. Continued positive momentum in the Nifty may be the reason behind the fresh build-up of open interest in the next series. However, the roll spread in the Nifty inched further high and ended around 100 points. The current roll spread is among the highest ever seen in the Nifty in terms of points. Data indicates continued rollover of long positions in the index.
Bank Nifty is also starting the new series with significantly higher open interest than the last. OI at inception is the highest since August 2018 for Bank Nifty. The roll spread in the banking index also remained high, around 130 points during settlement. (Source: ICICIDirect).
Rollovers
The Nifty rolls were near 66.73 percent, higher than the 3-month (3M) average of 62.94 percent. Market-wide rolls were at 85.4 percent, against the 3M average of 85 percent.
The highest rollover was seen in Wockhardt, OFSS, United Breweries, GSFC, and Heat, while rollover activity was relatively low in RBL Bank, Arvind, Marico, Petronet, and Container Corporation.
Among index stocks, Sun Pharma, Yes Bank, Grasim, and Titan witnessed high rolls into the April series, while HDFC Bank, L&T, Gail, and JSW Steel witnessed relatively low rolls into the next series. (Source: ICICIDirect)
Weak Debut
Despite positive market sentiment, state-owned e-commerce firm MSTC’s shares were listed on March 29 at a discount to the issue price. The tepid response to the issue and reduction in the price band could be the reason for the weakness in stock price.
The stock opened at Rs 115 on the National Stock Exchange, 4 percent lower than the issue price of Rs 120, while on the BSE, it started at Rs 111, a discount of 7.5 percent.
Credit Suisse on Bank of Baroda: The research house maintained an underperforming rating but raised the target to Rs per share from Rs 105hare.
It remains cautious about slower growth and awaits further clarity on the outlook & management continuity at the merged company.
Research house cut EPS estimate by 23-38% as it incorporates merged numbers.
Buzzing: Shares of Andhra Bank surged almost 2 percent after the public sector bank issued equity shares worth Rs 3,256 crore to the government.
Gold Update: Gold inched up on Friday but was on track for its first weekly decline in four weeks after posting its steepest fall in more than seven months in the previous session on a strong dollar.
PNB to offload its stake in PNB Housing: Punjab National Bank has entered into agreements to sell 1,08,91,733 equity shares held in PNB Housing Finance (PNBHF) to General Atlantic Group at a per-share price of Rs 850, aggregating to Rs 925.80 crore.
Also, 1,08,91,733 equity shares held in PNBHF were sold to VardePartners at a per-share price of Rs 850, aggregating Rs 925.80 crore.
Meanwhile, PNB would continue to hold a strategic stake of 19.78 percent of the paid-up capital of PNBHF.
