Nifty50: 18,726 ▲ 127 (+0.6%)
Sensex: 63,142 ▲ 350 (+0.5%)
Namaste, friends !
Archaeologists have made a startling new discovery on South Africa’s Cape Coast. They found the oldest footprint attributed to our species, Homo Sapiens, and it dates back 153,000 years. This footprint is testament to how even small traces can monumentally help us understand the past. While keeping our evolutionary strides in mind, let’s take a quick walk through the markets for the day.
- Benchmark indices closed higher amid strong buying across the board
- In all, 43 of the Nifty50 stocks closed in green
- Nifty crossed 18,700 level for the first time in 2023
All the Nifty sectoral indices closed in green with Realty (+1.5%) and Metal (+1.5%) being the top gainers.
| Top gainers | Today's change |
| Britannia | 4,901 ▲ 196 (+4.1%) |
| Tata Consumer | 822 ▲ 30 (+3.8%) |
| BPCL | 367 ▲ 11 (+3.3%) |
| Top losers | Today's change |
| Kotak Bank | 1,939 ▼ 19 (-1.0%) |
| Cipla | 962 ▼ 9.5 (-0.9%) |
| Maruti | 9,673 ▼ 63 (-0.6%) |
What’s trending
⭐Tata Motors scales new high
Shares of Tata Motors hit a new 52-week high of ₹575. The stock traded higher for the sixth straight day, up over 9% during this period. The sharp run-up in the stock can be attributed to improved monthly sales in the passenger-vehicle segment, which was up 6%. Meanwhile, Tata Group’s ₹13,000 crore capex announcement to set up a lithium-ion manufacturing unit was also positive for the stock.
⭐Torrent Power soars on new deal
Torrent Power stock saw significant gains today, rising over 18% intraday. This comes after the company signed an agreement with Maharashtra government to develop three pumped-storage hydro projects of 5,700 MW capacity. This new project will involve a total investment of ₹27,000 crore and will be executed over a period of five years.
⭐ Va Tech Wabag shines on order win
Shares of water treatment solutions provider Va Tech Wabag rose over 5% intraday after it secured a new order worth ₹420 crore. This new order comes from a government entity, CIDCO, involving the design, building, and operation of a 270 million litres per day (MLD) water treatment plant in Maharashtra.
⭐ Gold trades within a range
MCX Gold traded lower today ahead of the RBI policy meeting. Gold prices opened flat at ₹59,977 per 10 grams (-0.01%) and edged lower later in the day as investors wait for a clear picture on interest rates.
In Focus
Change in Nifty expiry day to benefit traders
The National Stock Exchange (NSE) has changed the expiry day for its Bank Nifty Futures and Options (F&O) contracts to Friday from Thursday. This change is applicable for weekly, monthly and quarterly contracts and will come into effect from 7 July 2023.
Following this announcement, shares of BSE tanked by nearly 2% on Tuesday. Wondering why this happened? And how traders will benefit from this new change? Here is a complete breakdown.
Impact on BSE F&O business
Bombay Stock Exchange (BSE) recently relaunched weekly options contracts for Sensex and Bankex citing high market participation in the F&O segment. The latest weekly expiry of these derivative contracts saw a turnover of ₹69,287 crore, a four-fold jump compared to the previous week.
BSE contracts gained popularity among traders due to the difference in expiry day, reduced charges and lower lot size (10) compared to NSE. Hence, in response to BSE’s move, NSE too modified its expiry day to continue its dominance.
Experts believe this new change could impact BSE’s F&O business volume as traders with limited capital are most likely to prefer NSE’s Bank Nifty compared to BSE contracts.
How will it benefit traders?
The shift in expiry day is likely to bring down volatility in Nifty’s weekly contracts as components of Bank Nifty index will be more active on Friday’s expiry instead of Thursday.
With this latest change, NSE will now have an F&O expiry on every day of the week barring Monday. Nifty Financial expiry on Tuesday, Nifty Midcap Select on Wednesday, Nifty50 on Thursday and now Bank Nifty on Friday.
Hence, investors now have the opportunity to bet on different themes across different expiries on NSE.
Moreover, NSE decision to tweak the lot size of Nifty Bank to 15 from 25 will be applicable from July 2023 onwards. This will free up some margins for traders which can be utilised for other trades.
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