Early tax release gives state capex a festive boost
The Centre released ₹1,09,019 crore in tax devolution to states five days early to support festive-season liquidity and capex. UltraTech Cement rose 3.67%, with futures showing short covering and ₹11,500 as the key options reference level.
pre-market1 source ↓machine-written, see hownot a recommendation
- ULTRACEMCO close
- ₹12,250
- On the day
- +3.67%
- Futures OI, short covering
- -1.7%
- Put-call ratio
- 0.99
- Max pain
- ₹11,500
The Union Ministry of Finance released ₹1,09,019 crore early to state governments on 5 Nov 2026, bringing forward the regular monthly tax devolution instalment by five days. The transfer, originally scheduled for 10 Nov, was intended to provide additional liquidity before the festive season and support faster capital expenditure, development and welfare spending.
Uttar Pradesh received the largest share at ₹19,208 crore, followed by Bihar at ₹10,845 crore, Madhya Pradesh at ₹8,010 crore, West Bengal at ₹7,866 crore and Maharashtra at ₹7,022 crore. The timing matters because state-led spending on roads, urban projects, housing and public infrastructure can support order flows across construction and building-material companies 🏗️. The release is an advance of a scheduled instalment, rather than a new fiscal allocation, so the immediate effect is improved cash-flow timing for state budgets.
OI Charts data showed UltraTech Cement at ₹12,250 on 5 Nov, up 3.67% on the day, with volume at 519,388. The stock gained 9.6% over five sessions and 12.9% over 20 sessions, while remaining below its 52-week high of ₹13,110 recorded on 10 Feb 2026. The market positioning showed short covering in futures: open interest fell 1.7% to 1,950,450 as the price rose. Futures traded at a 0.07% premium, while the put-call ratio stood at 0.99.
For the 23 Nov 2026 expiry, the largest call and put open interest were both at ₹11,500, which also marked max pain. The stock was trading above that level, making ₹11,500 the key options reference point as the expiry approached. Traders will watch whether state departments convert the early liquidity into visible tender activity, project awards and payment acceleration, while the cement segment’s price action remains near its recent highs. A sustained move toward the 52-week high, along with futures open-interest rebuilding, would provide a different positioning signal from the current covering-led rise
₹11,500 OI wall and the 23 Nov expiry remain the immediate derivatives markers for the stock, while the next scheduled tax-devolution instalment and state spending data will indicate whether the liquidity advance translates into higher infrastructure activity ⚙️.
Source: The Indian Awaaz, 05 Nov 2026
Not investment advice. For informational purposes only.