Benchmarks trim losses; India VIX up over 2%

The key equity indices pared some losses in early afternoon trade. The Nifty traded above the 16,400 mark. Bank shares declined across the board. Mixed Asian cues and continuous selling by the FIIs dented sentiment. Investors were also cautious ahead of Reserve Bank of India (RBI)`s policy announcement later this week.

At 12:25 IST, the barometer index, the S&P BSE Sensex, was down 562.69 points or 1.01% to 55,112.63. The Nifty 50 index declined 157.95 points or 0.95% at 16,411.60.

In the broader market, the S&P BSE Mid-Cap index lost 0.89% while the S&P BSE Small-Cap index was slipped 0.69%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,163 shares rose and 1,985 shares fell. A total of 124 shares were unchanged.

RBI`s Monetary Policy Committee (MPC) is meeting from 6th to 8th June 2022. After the 40 basis points off-cycle rate hike on 4 May 2022, RBI is widely expected to increase the policy rate further.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 2.49% to 20.71. The Nifty 30 June 2022 futures were trading at 16,422.30 at a premium of 10.7 points as compared with the spot at 16,411.60.

The Nifty option chain for the 30 June 2022 expiry showed maximum Call OI of 23.2 lakh contracts at the 17,000 strike price. Maximum Put OI of 40.2 lakh contracts was seen at 16,000 strike price.

Buzzing Index:

The Nifty Bank index declined 1.04% to 34,943.80. The index had advanced 0.10% to end at 35,310.20 yesterday.

Kotak Mahindra Bank (down 1.29%), HDFC Bank (down 1.26%), IDFC First Bank (down 1.14%), ICICI Bank (down 1.12%), and Axis Bank (down 1%) were the top losers.

Further, Bank of Baroda (down 0.83%), Punjab National Bank (down 0.79%), State Bank of India (down 0.4%), Federal Bank (down 0.33%) and IndusInd Bank (down 0.3%) declined.

Stocks in Spotlight:

Time Technoplast rallied 6.47.%. The company`s promoter firm informed that the process of sale of land parcel located on Saki Vikar road in Mumbai, has commenced with identified buyer. The sale consideration will be utilized for repayment of debt to lenders of the promoter company, resulting in release of entire present pledged equity shares.

Ashoka Buildcon added 0.35%. The company had submitted its bid to the Government of the Co-operative Republic of Guyana (the authority) and it has received a letter of acceptance (LOA) from the authority for the project viz. `request for proposal for procurement of Phase-1: East Bank-East Coast Road Linkage Project (Ogle to Haags Bosch, Eccles)` (project). The accepted bid project cost for the project is $106 million.

Powered by Capital Market - Live News