Indices at day`s low; breadth remains positive

Equity indices traded at the day`s low with major losses in early afternoon trade. Barring the Nifty Media index, all the sectoral indices on the NSE declined. Realty, IT and banks stocks tumbled.

At 12:28 IST, the barometer index, the S&P BSE Sensex, tumbled 900.01 points or 1.5% at 59,322.14. The Nifty 50 index dropped 262 points or 1.46% at 17,663.55.

Sentiment was dented by weak global cues amid a steep rise in COVID-19 infections across the globe. Selling pressure was exacerbated by minutes of US Federal Reserve`s last meeting, which signaled the central bank may have to raise interest rates sooner than expected.

In the broader market, the S&P BSE Mid-Cap index fell 0.56% while the S&P BSE Small-Cap index lost 0.29%.

The market breadth was positive. On the BSE, 1,675 shares rose and 1,611 shares fell. A total of 114 shares were unchanged.

Covid Update:

India has reported 90,928 cases in the last 24 hours, recording a sharp spike of over 56% in daily new infections. The country`s active caseload now stands at 2,85,401. The country also reported 325 deaths. The Omicron tally in country stands at 2,630.

Derivatives:

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, surged 6.28% to 18.31. The Nifty 27 January 2022 futures were trading at 17,715 at a premium of 35 points as compared with the spot at 17,680.

The Nifty option chain for 27 January 2022 expiry showed maximum Call OI of 21.1 lakh contracts at the 18,000 strike price. Maximum Put OI of 34.8 lakh contracts was seen at 17,000 strike price.

Buzzing Index:

The Nifty IT index declined 2.08% to 37,804.95, falling for second consecutive trading session. The IT index declined nearly 4% in two days.

Infosys (down 2.36%), HCL Technologies (down 2.35%), Tech Mahindra (down 2.21%), Mphasis (down 2.16%), L&T Infotech (down 2.08%), TCS (down 2%) and L&T Technology Services (down 1.76%) were top losers in IT space.

Stocks in Spotlight:

Larsen & Toubro fell 1.21%. The EPC company on Thursday announced that the company`s Water & Effluent Treatment business has secured a slew of orders from various clients. According L&T`s classification, the value of `large` contracts lies between Rs 2,500 crore to Rs 5,000 crore.

Garment Mantra Lifestyle rose 10.73% to Rs 170.85 after the company announced that it will setup a new centralized integrated facility in Surat, Gujarat. The proposed integrated facility will scale up business operations and it is expected to add to the company`s revenue in the next two years. It will further promote brand loyalty by catering to a large customer base, the company said in a statement. The facility, which extends upto about 10,000 square feet of area, is equipped with modern facilities to manage operations efficiently.

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