October 15, 17:18Aaj Tak

Sharp rise in premium on the stock market: an option worth 3 rupees exceeded 115 rupees

A significant event occurred on the Indian stock market on Thursday: shortly before the close of trading, one of the premium instruments of the Sensex index rose by approximately 35 times. This led to a sharp increase in profits for investors who invested in this option.

The Indian stock market demonstrated impressive growth on Thursday. The Sensex index closed at 74315, showing a rise of 1534 points or 2.11 percent. Simultaneously, Nifty reached the mark of 22,997, increasing by 374 points or 1.66 percent. During this period, strong buying activity was observed in the 74200 Option Call instrument, which suddenly exceeded the mark of 115 rupees.

According to a CNBC report, this call initially cost about 10 rupees, then dropped to 3 rupees, and subsequently surged to 115 rupees. Experts note that such phenomena are rare in the market, but such cases have been observed since the introduction of SEBI's CAS rule.

It is believed that in the last hours of trading, most option premiums are slowing down and beginning to decline. Premiums below 10 rupees are falling particularly fast, and the chances of their recovery are extremely small. Therefore, if any premium instrument demonstrates such a sharp rally at this time, it may indicate the presence of some violations. Similar assumptions are being made regarding this premium instrument.

If someone purchased the 74200 option at a price of about 3 rupees, they could have made a 35-fold profit on each lot. Since one lot in Sensex consists of 20 units, this means that with an investment of 60 rupees per lot, a profit of 2300 rupees could have been made. However, it should be emphasized that this is only an approximate estimate and is not a recommendation to buy such premiums, as such a jump may indicate market irregularities.

A call option within F&O is a contract that allows an investor to bet on an increase in the price of a stock or index without buying them directly. When an investor expects market or stock price growth, they bet on a call option and earn from the increase in premium using margin collateral. Each call option has an expiration date during which the investor can decide whether to purchase it.

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www.aajtak.inOctober 12, 11:16

RBI tightens control over the dollar, leading to strengthening of the Indian rupee

The Reserve Bank of India (RBI) has begun implementing measures aimed at supporting and strengthening the Indian rupee. These steps, taken on October 12, have helped reduce demand for the dollar in the spot market and limit speculative currency trading, which caused a significant rise in the Indian currency against the dollar.

Following the implementation of these restrictions on Monday, the rupee rose by more than 1% at the opening of the foreign exchange market. Thanks to these policy measures controlling the demand for cash and forward dollars, the Indian rupee reached a level of 95.74 against the dollar, which is 1% higher than the Friday close at 96.73. Furthermore, the Indian rupee is showing strong performance among other Asian currencies.

This improvement in the exchange rate occurred after a period of rupee weakening: it lost over 7% in the current calendar year and about 3.5% in the 2027 fiscal year. In May of this year, the rupee approached its historical low of 96.96 per dollar. The main factors pressuring the rupee were the sharp rise in crude oil prices, the strengthening of the dollar, and constant outflow of foreign capital.

According to a Reuters report, City economists believe that after the recent central bank measures, the rupee may suddenly accelerate towards stabilization. In a statement published on Monday, they noted that the RBI's package of measures increases the cost of short-term operations related to rupee depreciation, but this does not eliminate existing pressure on the balance of payments.

The RBI announced that US dollars will be sold to Indian oil refining companies: Indian Oil Corporation (IOCL), Hindustan Petroleum Corporation (HPCL), and Bharat Petroleum Corporation (BPCL). This arrangement came into effect on Monday, October 12, 2026, and will remain in force until further notice. Under this system, the RBI will provide dollars to the three state-owned oil companies through banks to meet their daily foreign currency needs for operational activities.

The RBI created a special channel for the three refining companies, assessing current market conditions, allowing them to receive dollars through the banking system. The oil distributors require dollars to pay for crude oil imports and other overseas expenses.

The central bank reduced the limit for certain foreign currency derivative transactions from $100 million to $5 million. This revised limit also applies to currency derivatives linked to the rupee traded on recognized stock exchanges. The goal is to ensure that large derivative positions are used to support imports or exports, rather than primarily for speculative purposes.

The next initiative by the RBI introduced a mandatory Foreign Exchange Risk Reserve (FERR) requirement for currency derivative contracts with a notional value exceeding $20 lakh and pegged to the rupee. Registered dealers must hold a cash reserve with the RBI equivalent to 20% of the rupee value of each corresponding transaction. This requirement applies to contracts used for hedging current account risks when users buy foreign currency against the rupee.

Users entering into currency derivative contracts must obtain and retain a declaration from registered dealers confirming that the same risk is not being hedged through another dealer. This condition is intended to prevent double hedging of the same risk and improve market conditions.

These measures may reduce speculative demand for the dollar and ease short-term volatility. They were introduced at a time when, despite central bank intervention in the forex market and interest rate hikes, the rupee remained close to its record low last Friday. On Friday, the rupee closed at 96.73 rupees per dollar, close to the historical low of 96.96 rupees. After the central bank's measures were introduced, the rupee showed a rapid recovery.

www.aajtak.inOctober 6, 13:40

Stock market shows significant growth: earnings reached 3.61 lakh crore

On Tuesday, the stock market demonstrated exceptionally strong growth, with both the Sensex and Nifty indices closing with a substantial increase. Investors participating in trading throughout the day were able to achieve profits exceeding 300 million rupees.

The index figures indicate a dynamic day. The Sensex index, comprising 30 shares of the Bombay Stock Exchange (BSE), concluded trading with a gain of 685 points. Meanwhile, the Nifty index of the National Stock Exchange (NSE) closed with a rise of 220 points.

During trading, the BSE Sensex opened at 72,508, which was higher than the previous close of 72,382. After daily fluctuations, the BSE Sensex closed at 73,067.81, showing an increase of 685.34 points. As for the NSE Nifty, this index of 50 shares also followed the trend of the Sensex, demonstrating strong growth. It started trading with a gain of 22,603 compared to the previous close of 22,555, and by the time the market closed, it reached 22,776.10, increasing by 220.35 points.

Thanks to this growth in the stock market, investors realized a tangible profit. The total market capitalization of companies listed on the Bombay Stock Exchange amounted to 473,681,288.89 crore rupees at the time of closing. This exceeds the figure from the previous trading day, which was 470,064,428.0. Calculations show that investors in the stock market earned 361,686 crore rupees on Tuesday during trading hours.

This sharp rise in the stock market was supported by shares of several large companies. Among the leaders in the Largecap category of BSE were Trent Share (up 12.78%), Kotak Bank Share (up 3.59%), HUL Share (up 2.83%), Reliance Share (up 2.77%), IndiGo Share (up 2.23%), and Eternal Share (up 2.08%).

In the Midcap category, the leaders were TI India Share (up 6.08%), Plicy Bazar Share (up 5.56%), Laurus Labs Share (up 4.58%), and MCX Share (up 4.15%). In the Smallcap segment, shares of PGEL Share (up 8.22%), Welcorp Share (up 7.11%), KPIL Share (up 5.23%), and HFCL Share (up 4.98%) showed positive momentum.

The growth in the stock market was driven by several factors. The effect of purchases in the banking and finance sectors was noted. Additionally, there was a softening in crude oil prices, which had previously reached high levels due to the war in the Middle East, although the Brent Crude price still exceeds $100. The market also received support from gains in Asian stock exchanges.