Bharat Electronics Ltd. (BEL) had an outstanding day of trading on the stock market on May 24, 2024 with large price fluctuations and trading volumes. The stock closed at INR 297.90 up 3.19% from its previous closing of INR 288.70. Throughout the day the stock rose to a high of INR 300.65 and down to INR 286.35.
Market Dynamics and Trading Data
BEL trading began at INR 288.45 and swiftly gained momentum reaching a spot price of INR 297.20 at the close of the day. The stock had considerable demand with a bid of INR 297.75 for 5,700 shares and an offer of INR 297.95 for 14,250 shares. The stock’s market lot size is 2,850 shares.
Future and Options Market Activity
BEL experienced significant activity in the futures and options (F&O) market. The stock’s futures expire on May 30, 2024 and have a 30.14% rollover rate at an average price of INR 295.30. The open interest for BEL futures was 109,260,450, representing a 7.49% decline, or 8,840,700 contracts.
Option Chain Snapshot
The BEL option chain demonstrates strong trading particularly for strike prices close to the current market price. Notably the 300.00 call option was the most popular with 94,939,200 volume and a last traded price of INR 5.90. Other active calls include the 290.00 strike price with a volume of 40,589,700 at INR 10.85 and the 295.00 strike price with a volume of 40,173,600.
On the put side the 290.00 strike price was the most traded with 17,288,100 volumes at a price of INR 3.20. This indicates a significant amount of hedging activity as traders anticipate potential price corrections.
Open Interest and Volume Changes
Analyzing the open interest (OI) data provides insights into market sentiment. The total OI for BEL saw a reduction of 7.95% dropping by 18,847,050 contracts to 218,310,000. Specifically call options OI decreased by 17.92% while put options OI increased by 5.06% suggesting a mixed sentiment with a slight bearish inclination.
In terms of volumes BEL futures saw a 7.95% decrease in traded volumes whereas call and put options experienced an increase of 4.19% and 7.70% respectively. This overall increase in option trading volumes suggests heightened activity and interest in BEL’s near-term performance.
Also Read – GMR Airports Stock Sees Slight Decline Amid High Trading Volumes on May 23, 2024
Fundamental Indicators
From a fundamental perspective BEL’s market capitalization stands at INR 217,246.63 crores. The company has an EPS (TTM) of 5.50 and a P/E ratio of 54.04 which is slightly above the industry P/E of 51.29 indicating a premium valuation. BEL also offers a dividend yield of 0.74% with a book value of INR 22.00 and a price-to-book ratio of 13.51.
Conclusion
Bharat Electronics Ltd. has had a dynamic trading session characterized by significant price movement, high trading volumes and active participation in the futures and options market. The stock’s performance reflects strong investor interest and volatility driven by both speculative trading and fundamental strength. As the expiry date for futures approaches it will be crucial to monitor how the open interest and trading volumes evolve providing further insights into market expectations and sentiment regarding BEL.