Barometers turn rangebound, VIX spurts 5%

The benchmark indices traded in a narrow range with modest losses in early afternoon trade. The Nifty traded below the 19,550 mark. Auto stocks witnessed a bit of selling pressure after rising in the past trading session.

At 12:29 IST, the barometer index, the S&P BSE Sensex, was down 300.07 points or 0.46% to 65,528.34. The Nifty 50 index lost 106.10 points or 0.54% to 19,532.20.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.11% while the S&P BSE Small-Cap index added 0.62%.

The market breadth was positive. On the BSE, 1,864shares rose and 1,769 shares fell. A total of 182 shares were unchanged.

Investor sentiment took a hit after top Federal Reserve officials, including Fed Governor Michelle Bowman, Vice Chair Michael Barr, Fed Chair Jerome Powell, and New York Fed Chief John Williams, have indicated their willingness to support an increase in the federal funds rate if economic data suggests a sluggish approach towards the central bank`s 2% inflation target.

Despite considerable progress, these officials agreed that inflation remains elevated, hinting at the possibility of further rate increases. The current policy rate stands between 5.25% and 5.50%.

They also underscored the need for a restrictive monetary policy over an extended period to achieve their objectives.

Economy:

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers` Index (PMI) registered 57.5 in September, down from 58.6 in August. Although the lowest for five months, the latest reading remained firmly above the no-change mark of 50.0 and its long-run average (53.9), therefore signaling a sharp rate of expansion.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 5.02% to 12.03. The Nifty 26 October 2023 futures were trading at 19,577.30, at a discount of 45.1points as compared with the spot at 19,532.20.

The Nifty option chain for the 26 October 2023 expiry showed maximum Call OI of 25.8 lakh contracts at the 20,000 strike price. Maximum Put OI of 61.7 akh contracts were seen at 19,500 strike price.

Buzzing Index:

The Nifty Auto index declined 1.22% to 15,987.05. The index added 0.57% in the past trading session.

Eicher Motors (down 3.13%), Maruti Suzuki India (down 2.51%), Tata Motors (down 1.7%), Balkrishna Industries (down 1.69%), Hero MotoCorp (down 1.23%), Bosch (down 1.02%), Mahindra & Mahindra (down 0.96%), Samvardhana Motherson International (down 0.78%), Bharat Forge (down 0.63%) and Sona BLW Precision Forgings (down 0.51%) edged lower.

On the other hand, Ashok Leyland (up 0.73%), MRF (up 0.34%) and TVS Motor Company (up 0.25%) rose.

Mahindra & Mahindra (M&M) declined 0.96%. The auto major announced that its overall auto sales for the month of September 2023 stood at 75,604 vehicles, registering the growth of 17.24% as against 64,486 vehicles sold in September 2022.

Hero MotoCorp fell 1.23%. The two-wheeler major`s total sales increased by 3.17% to 536,499 units in September 2023 from 519,980 units in September 2022. Meanwhile, the automobile maker also announced that it will increase the ex-showroom prices of its select motorcycles and scooters, effective from 3 October 2023.

Tata Motors declined 1.7%. The auto major announced that its domestic sales for September 2023 stood at 82,023 vehicles, registering growth of 2% as compared to 80,633 units sold in September 2022. Tata Motors sales in the domestic & international market decline marginally to 2,43,024 vehicles in Q2 FY24 as compared with 2,43,387 units during Q2 FY23.

Bajaj Auto shed 0.25%. The auto major`s total auto sales fell marginally to 3,92,558 units in September 2023 as against 3,94,747 units sold in September 2022.

Maruti Suzuki India slipped 2.35%. The company`s total sales in the month of September 2023 grew 2.86% to 181,343 units as compared with 176,306 units sold in the same period last year.

Ashok Leyland rose 0.73% after the company`s total vehicle sales increased 9% to 19,202 units in September 2023 as compared with 17,549 units sold in September 2022.

Powered by Capital Market - Live News