Barometers turn rangebound, PSU banks slide, VIX soars 9.34%

The benchmark indices traded in a narrow range with deep cuts in early afternoon trade. The Nifty slipped below the 18,900 level. PSU bank shares witnessed selling pressure after rising in the past trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 857.09 points or 1.34% to 63,191.97. The Nifty 50 index declined 256.85 points or 1.34% to 18,865.30.

In the broader market, the S&P BSE Mid-Cap index fell 1.68% while the S&P BSE Small-Cap index lost 1.65%.

Sellers outnumbered buyers. On the BSE, 679 shares rose and 2,875 shares fell. A total of 138 shares were unchanged.

The market sell-off has been triggered by the US 10-year bond yield nearing the 5 percent mark, which pulled down the risk levels materially in the region. Geopolitical tensions emanating from West Asia dragged the market lower. The expiry of monthly F&O contracts on the NSE today further added to the volatility.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, surged 9.34% to 12.37. The Nifty 26 October 2023 futures were trading at 18,980.50, at a premium of 115.2 points as compared with the spot at 18,865.30.

The Nifty option chain for the 26 October 2023 expiry showed maximum Call OI of 248.1 lakh contracts at the 18,900 strike price. Maximum Put OI of 222.5 lakh contracts were seen at 18,800 strike price.

Buzzing Index:

The Nifty PSU Bank index fell 1.93% to 4,679.75. The index added 0.17% in the past trading session.

Indian Overseas Bank (down 4.63%), Punjab & Sind Bank (down 4.39%), UCO Bank (down 4.09%), Bank of Maharashtra (down 3.86%), Central Bank of India (down 3.23%), Union Bank of India (down 2.68%), Bank of Baroda (down 2.1%), Canara Bank (down 2.08%), Punjab National Bank (down 2.01%) and State Bank of India (down 1.92%) edged lower.

Stocks in Spotlight:

Chalet Hotels declined 1.62%. The company reported 131.66% jump in consolidated net profit to Rs 36.44 crore during the quarter as compared with Rs 15.73 crore posted in corresponding quarter last year. Revenue from operations jumped 26.91% YoY to Rs 314.54 crore in the quarter ended 30 September 2023.

Gulf Oil Lubricants India rallied 4.68% after the company reported 41.22% increase in net profit to Rs 73.63 crore on 11.51% rise in revenue from operations to Rs 802.30 crore in Q2 FY24 over Q2 FY23.

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