Sensex, Nifty Close At Record High; Adani Stocks Slide For Second Day

India stocks extended their record run on expectations of rebound in economic activity as virus cases continue to decline, ignoring that inflation data that showed rising supply-side pressures.

The S&P BSE Sensex rose 0.4% to 52,773.05. The NSE Nifty 50 Index also advanced 0.4% to 15,869.25. Both gauges registered fresh record levels. Fifteen of the 19 sector sub-indices compiled by BSE Ltd. climbed, led by a gauge of real-estate companies. The S&P BSE Healthcare index was the worst performer.

India’s retail inflation showed unexpected surge in May to 6.3% from a year earlier, according to data released after trading hours yesterday. The reading was above the median forecast of 5.4% and was in line with separate data that showed wholesale prices soared by 12.94% in the previous month.

Prospects of a sharp recovery in economic activities in the coming months are overshadowing the concerns over inflation, Binod Modi, head of strategy at Reliance Securities said in a note. “While domestic equities continue to look good, investors must focus on quality stocks with robust earnings visibility and margins of safety.”

Jubilant Food reported net income for the fourth quarter that missed the average analyst estimate.

• Net income Rs 104 crore vs. Rs 21.05 crore YoY, estimate Rs 107 crore (Bloomberg Consensus)

• Revenue Rs 1,030 billion rupees, +15% YoY, estimate Rs 1,030 crore

• Total costs Rs 900 crore, +4.5% YoY

• Same-store sales +11.8% vs. -3.40% YoY

• Ebitda Rs 249 crore, +46% YoY, estimate Rs 264 crore

• Dividend per share Rs 6

• Asian Paints options volume 2.2x the 20-day average, with 39,052 calls changing hands vs 9,744 puts

  • Stock up 2.7%, volume 1.3x the 20-day average for this time of day

• ONGC options volume 1.9x the average, with 23,032 calls vs 6,046 puts

  • Stock up 1.8%, volume 0.9x the average

• Tech Mahindra options volume 1.8x the average, with 22,018 calls vs 6,584 puts

  • Stock up 0.1%, volume 1.3x the average

• Nifty 50 options volume 0.4x the average, with 2.42 million calls vs 2.74 million puts; gauge up 0.5%

  • Cost of hedging as measured by the 90/110, one-month skew ranks in the 66th percentile over the past year