Indices at day`s low; Nifty slides below 21,550; PSU banks in demand

Domestic equity benchmarks extended losses and hit fresh day�s low in early afternoon trade. The Nifty slipped below the 21,550 mark. PSU bank shares advanced after declining in the past trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 458.36 points or 0.64% to 71,434.12. The Nifty 50 index lost 141.05 points or 0.65% to 21,524.75.

In the broader market, the S&P BSE Mid-Cap index added 0.03% and the S&P BSE Small-Cap index rose 0.15%.

The market breadth was positive. On the BSE, 2,018 shares rose and 1,706 shares fell. A total of 129 shares were unchanged.

Economy:

The HSBC India Manufacturing Purchasing Managers� Index survey, conducted by S&P Global, fell to 18-month low of 54.9 in December as against 56 in November. Despite the fall, the HSBC India Manufacturing PMI was indicative of a marked improvement in the health of the sector.

The HSBC India Manufacturing PMI survey, conducted by S&P Global, showed the sector still expanding strongly in December despite a loss of growth momentum. There were softer, albeit sharp, increases in factory orders and output, while business confidence towards the year-ahead outlook strengthened.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 1.21% to 14.40. The Nifty 25 January 2024 futures were trading at 21,624.50, at a premium of 99.75 points as compared with the spot at 21,524.75.

The Nifty option chain for the 25 January 2024 expiry showed maximum Call OI of 27.3 lakh contracts at the 22,000 strike price. Maximum Put OI of 35.8 lakh contracts were seen at 21,000 strike price.

Buzzing Index:

The Nifty PSU Bank index added 1.10% to 5,798.15. The index declined 0.38% in the past trading session.

Bank of Maharashtra (up 3.85%), UCO Bank (up 3.64%), Canara Bank (up 3.55%), Indian Overseas Bank (up 2.53%), Central Bank of India (up 2.35%), Union Bank of India (up 1.7%), Bank of India (up 1.53%), Punjab & Sind Bank (up 1.38%), Bank of Baroda (up 1.24%) and Indian Bank (up 1.08%) edged higher.

Stocks in Spotlight:

Glenmark Pharmaceuticals rose 0.77% after the firm launched a biosimilar of the anti‐diabetic drug, Liraglutide, for the first time in India, under the brand name Lirafit.

Rail Vikas Nigam (RVNL) advanced 1.80% after the company�s joint venture (JV), KRDCL-RVNL has received letter of acceptance (LoA) from CAO-CN-ERS-Engineering for redevelopment of Sivagiri Railway station, Kerala.

Gail (India) declined 1.13%. The firm said that it has signed a term sheet with truAlt Bioenergy for equity participation in the latter`s joint venture company Leafinti Bioenergy, the owner and the operator of India`s second compressed biogas (CBG) plant.

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