Benchmarks trade with modest gains; FMCG shares advance

The domestic equity benchmarks managed to pare all losses and traded with modest gains in early afternoon trade. The Nifty managed to trade above the 17,550 mark. FMCG shares decent buying demand.

At 12:28 IST, the barometer index, the S&P BSE Sensex, was up 99.46 points or 0.17% to 58,866.05. The Nifty 50 index added 23.75 points or 0.14% to 17,566.55.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.30% while the S&P BSE Small-Cap index advanced 0.47%.

The market breadth was positive. On the BSE, 1,903 shares rose and 1,377 shares fell. A total of 162 shares were unchanged.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 9.27% to 20.44. The Nifty 29 September 2022 futures were trading at 17,644.85, at a premium of 50.7 points as compared with the spot at 17,594.15.

The Nifty option chain for the 29 September 2022 expiry showed maximum Call OI of 25.1 lakh contracts at the 17,500 strike price. Maximum Put OI of 33.7 lakh contracts was seen at 16,500 strike price.

Buzzing Index:

The Nifty FMCG index advanced 0.34% to 43,643.15. The index had declined 0.74% to end at 43,497.35 yesterday.

United Spirits (up 2.16%), United Breweries (up 1.87%), ITC (up 1.35%), Britannia Industries (up 0.56%) and Emami (up 0.18%) were the top gainers.

Among the other gainers were Nestle India (up 0.13%), Colgate-Palmolive (India) (up 0.07%) and Tata Consumer Products (up 0.01%).

Meanwhile, Radico Khaitan Ltd (down 0.68%), Hindustan Unilever Ltd (down 0.46%) and Varun Beverages Ltd (down 0.26%) edged lower.

Stocks in Spotlight:

Shares of Adani Enterprises advanced 2.95% while those of Shree Cement declined 1.83%. Adani Enterprises will replace Shree Cement in the 50-share benchmark NIFTY 50 index effective 30 September 2022.

IndusInd Bank shed 0.99%. The private lender on Friday (2 September 2022) announced a strategic partnership with Asian Development Bank (ADB) to support and promote Supply Chain Finance (SCF) solutions in India.

Birla Corporation rose 0.27%. The company said that it has permanently closed the manufacturing establishment at its unit namely, Auto Trim Division, Gurgaon w.e.f. 1st September, 2022.

"There has been no production activity carried out in the said Unit since November 2007, hence it has been decided to close the same. The said closure does not have any material and adverse effect on the operations of the company,� the MP Birla Group company said in a statement.

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