In today’s briefing:
- SENSEX Index Rebalance: And That’s a Googly
- EQD / NSE Volatility Update / 20-May-24 to 24-May-24
- Icici Securities (NSE:ISEC) – Sunday, Feb 25, 2024
- Morning Views Asia: Lenovo, UPL Ltd, Xiaomi Corp
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SENSEX Index Rebalance: And That’s a Googly
- Adani Ports & Special Economic Zone (ADSEZ IN) will replace Wipro Ltd (WPRO IN) in the S&P BSE SENSEX Index at the close on 21 June.
- Adani Ports & Special Economic Zone (ADSEZ IN)‘s inclusion is a big surprise and there should be a move higher in the stock in the short-term.
- Wipro Ltd (WPRO IN)‘s deletion was expected and there is positioning in the stock. But there is a lot that passives need to sell too.
EQD / NSE Volatility Update / 20-May-24 to 24-May-24
- Multiple factors help IVs stabilize after last week’s spike. “High & Up” vol state to persist until elections results on 04-June-2024.
- SEBI makes changes to Dynamic Price-band Mechanism. Will impact options market-making & should have an overall Vol suppressing effect.
- Nifty50 10-delta Risk-reversals extend to -8.5% as the Index reaches 23000. Risk-premia favouring puts over calls is looking over-extended.
Icici Securities (NSE:ISEC) – Sunday, Feb 25, 2024
- Recommendation to buy ISEC shares at Rs 840 per share with a price target of Rs 1200 per share
- Dissatisfaction among minority shareholders due to insider’s attempt to acquire remaining shares at a lower price
- Illiquidity and limited institutional investors due to Parent owning 75% of shares, potential merger poses a risk but shareholders can extract fair value even in a merger scenario
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.
Morning Views Asia: Lenovo, UPL Ltd, Xiaomi Corp
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.