Surge in Open Interest Signals Increased Activity in IRB Infrastructure's Derivatives Market

IRB Infrastructure Developers Ltd, a prominent player in the construction industry, has experienced a notable increase in open interest today. The latest open interest stands at 16,478 contracts, reflecting a rise of 1,501 contracts or 10.02% from the previous open interest of 14,977. This surge in open interest comes alongside a trading volume of 8,756 contracts, indicating heightened activity in the derivatives market.
In terms of price performance, IRB Infrastructure has underperformed its sector by 0.28%, with a one-day return of -0.40%. The stock has recently seen a trend reversal, falling after two consecutive days of gains. Currently, the stock is trading above its 5-day, 20-day, 50-day, and 100-day moving averages, yet remains below its 200-day moving average.

Additionally, the stock has shown increased liquidity, with a delivery volume of 1.76 crore on June 9, marking a significant rise of 171.77% compared to the 5-day average delivery volume. With a market capitalization of Rs 31,976.51 crore, IRB Infrastructure continues to be a significant entity in the construction sector. The increase in open interest highlights a shift in market dynamics, warranting attention from market participants.

Note : Historical numbers are not comparable for this company due to transfer of 9 assets by IRB to Private InvIT in FY20.

Pledge shareholding: IRB has provided a non-disposal undertaking (committing not to sell a certain percentage of their holding in IRB) to GIC and the Ferrovial Group.