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Barometers off the day`s high; India VIX down nearly 4%

Published on May 20, 2022 12:28

The domestic equity barometers came off the day`s high in early afternoon trade. The Nifty traded above the 16,100 level. Bank stocks witnessed some bit of bargain buying after a 2-day fall. Investor sentiment received a boost after China cut a key lending benchmark, seeking to support its ailing economy.

At 12:26 IST, the barometer index, S&P BSE Sensex was up 1029.86 points or 1.95% to 53,822.09. The Nifty 50 index added 322.95 points or 2.04% to 16,132.35.

In the broader market, the S&P BSE Mid-Cap index rose 1.36% while the S&P BSE Small-Cap index gained 1.37%.

Buyers outnumbered sellers. On the BSE, 2,429 shares rose while 758 shares fell. A total of 145 shares were unchanged.

China announced a cut in its five-year loan prime rate by 15 basis points earlier on Friday, reportedly the largest cut on record. That rate is used as a reference rate for mortgages, and the cut, the second reduction this year, comes as Beijing seeks to revive the troubled housing sector to prop up the second-largest economy in the world.

China`s economy, a key global growth driver, is reportedly expected to shrink this quarter from a year earlier, compared with first quarter`s 4.8% growth, with the property sector seen as a key drag on growth on the back of COVID-related mobility restrictions.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, fell 3.82% to 23.62. The Nifty 26 May 2022 futures were trading at 16,116.35 at a discount of 16 points as compared with the spot at 16,132.35.

The Nifty option chain for the 26 May 2022 expiry showed maximum Call OI of 91 lakh contracts at the 17,000 strike price. Maximum Put OI of 89.1 lakh contracts was seen at 16,000 strike price.

Buzzing Index:

The Nifty Bank index rose 1.89% to 33,946.05. The index had declined 2.88% in the past two sessions.

IndusInd Bank (up 2.94%), AU Small Finance Bank (up 2.83%), SBI (up 2.39%), Kotak Mahindra Bank (up 2.16%), Axis Bank (up 2.01%), Punjab National Bank (up 1.88%), HDFC Bank (up 1.72%), ICICI Bank (up 1.71%) and IDFC First Bank (up 1.70%) advanced.

Stocks in Spotlight:

Hindustan Aeronautics (HAL) jumped 4.63% to Rs 1763 after the company received `Type Certification of first Indigenous Light Transport civil passenger aircraft Hindustan 228-001` from the DGCA.

Hindustan Petroleum Corporation (HPCL) rose 1.17% to Rs 241.50. HPCL reported a 40.5% fall in standalone net profit to Rs 1,795.26 crore in Q4 FY22 from Rs 3,017.96 crore posted in Q4 FY21. Net sales surged 30.4% to Rs 97,226.51 crore for the quarter ended 31 March 2022 from Rs 74,544.62 crore posted in the corresponding quarter last year.

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