India Bulls Unshaken by Selloff as Modi Budget Beckons
This article is for subscribers only.
India’s biggest stock selloff in 10 months has done nothing to shake the resolve of bulls in the options market, who say shares will rally as Prime Minister Narendra Modi outlines plans to strengthen the economy.
The cost of bullish calls on the nation’s CNX Nifty Index rose yesterday, while puts dropped, even as the equity gauge sank 2.1 percent in the biggest retreat since Sept. 3. The gap between bullish and bearish contracts, a gauge of investor demand for protection against losses, fell to 1.1 points, near the record low of 0.67 reached on June 26, according to data compiled by Bloomberg.