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Total number of calls rose to 35,293 contracts from 26,230 on Thursday, while puts increased to 19,689 from 16,033, according to data compiled by ‘Bloomberg’.
Total number of calls rose to 35,293 contracts from 26,230 on Thursday, while puts increased to 19,689 from 16,033, according to data compiled by ‘Bloomberg’.

RIL’s call options rise for fourth day before March quarter results

The number of put options in RIL per call dropped to 0.56 as of 3.14pm in Mumbai, poised for the lowest since 26 March

Mumbai: Indian options traders added more calls in Reliance Industries Ltd (RIL) than puts for a fourth straight day, signalling optimism before the company’s quarterly results on Friday.

The number of put options in RIL per call dropped to 0.56 as of 3.14pm in Mumbai, poised for the lowest since 26 March. Total number of calls rose to 35,293 contracts from 26,230 on Thursday, while puts increased to 19,689 from 16,033, data compiled by Bloomberg show. RIL’s options are most popular among Indian companies.

Net income for the company, which owns the world’s biggest refining complex, probably rose 6% to 5,960 crore in the March quarter, according to the median of 16 analyst estimates in a Bloomberg survey. The results, expected after Friday’s market close, come amid projections that S&P BSE Sensex earnings will drop for a second straight quarter.

“We are recommending buying calls as we expect Reliance to post blockbuster results," Supreeth Shankarghal, a director at QF Assets Ltd, a hedge fund in Bengaluru, said by phone on Friday. “The worst is over for refining margins and the stock is expected to make up for last year’s underperformance."

RIL’s earnings growth is forecast to be driven by its refining division after Singapore complex refining margins surged 34% during the January to March period, according to a Nomura Holdings Inc. report on 9 April.

RIL’s shares declined 0.06% to 926.85 on Friday, paring their advance in April. They lost 0.5% in 2014, missing the Sensex’s 30% rally.

The 30-stock Sensex dropped 0.78%, while the 50-member CNX Nifty index retreated 1.16%. The India VIX, a gauge of protection against stock market swings using options, advanced 0.45% at 15.02. Bloomberg

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