Benchmarks trade with steep cuts; NSE VIX cross 30 mark

The domestic equity benchmarks continued to trade with deep cuts in early afternoon trade, as escalating tensions between Russia and Ukraine dampened investor sentiment. The Nifty was trading below the 16,550 mark. Banks stocks witnessed steep selling.

At 12:24 IST, the barometer index, the S&P BSE Sensex, was down 1696.65 points or 2.96% to 55,535.41. The Nifty 50 index fell 519.55 points or 3.04% to 16,543.70.

In the broader market, the S&P BSE Mid-Cap index fell 3.88% while the S&P BSE Small-Cap index slumped 4.03%.

Sellers outpaced buyers. On the BSE, 256 shares rose and 3012 shares fell. A total of 92 shares were unchanged.

Trading sentiment took a hit after Russian President Vladimir Putin said in a public address that he had authorized a military operation in Ukraine. Later the media reported explosions were heard in Kyiv. Putin appealed to Ukrainian soldiers to lay down their arms and go home. He said Russia doesn`t plan to �occupy� its southern neighbour, but that Russia must �defend itself from those who took Ukraine hostage� -- the U.S. and its allies who had crossed Russia`s �red line� with expansion of the NATO alliance.

India has called for an immediate de-escalation of tensions between Russia and Ukraine. India`s Permanent Representative UN, TS Tirumurti cautioned that the situation is in danger of spiraling into a major crisis. He was addressing an emergency meeting of UN Security Council held on Ukraine this morning. This was the second meeting of UNSC this week and the fourth since January 31 as tensions escalated between Russia and Ukraine. Tirumurti emphasized sustained and focused diplomacy to address all issues concerning the situation.

Meanwhile, UN Secretary-General Antonio Guterres made a direct appeal to President Putin to stop Russian troops from attacking Ukraine.

Derivatives:

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, soared 24.22% to 30.49. The Nifty 31 March 2022 futures were trading at 16,572, at a premium of 28.3 points as compared with the spot at 16,543.70.

The Nifty option chain for 31 March 2022 expiry showed maximum Call OI of 18 lakh contracts at the 18,000 strike price. Maximum Put OI of 50.3 lakh contracts was seen at 16,500 strike price.

Buzzing Index:

The Nifty Bank index fell 3.53% to 36,071.80. The index had advanced 0.05% to end at 37,392.05 yesterday.

RBL Bank (down 8.25%), Punjab National Bank (down 6.96%), IDFC First Bank (down 6.93%), Bandhan Bank (down 6.26%), IndusInd Bank (down 6.18%), AU Small Finance Bank (down 5.65%), Federal Bank (down 5.23%), Axis Bank (down 3.55%), SBI (down 3.55%), ICICI Bank (down 3.34%), HDFC Bank (down 2.59%) and Kotak Mahindra Bank (down 2.39%) declined.

Stocks in Spotlight:

Bharat Forge tumbled 4.03% to Rs 675.90. The forging product supplier announced that it has entered into a definitive agreement to acquire JS Autocast Foundry India.

Forbes & Company shed 0.75% to Rs 411. The company`s board has approved the binding term sheet for the sale of its entire stake held in its wholly-owned subsidiary, Forbes Facility Services (FFSL) to SILA Solutions for Rs 42 crore.

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