Indices trade near flat line, media stocks decline

The benchmark indices continued to pare losses and traded near the flat line in early afternoon trade. The Nifty traded a tad above the 17,650 mark after hitting the day`s low of 17,611.80 in early trade. Media stocks tumbled for the fifth consecutive trading session.

At 12:27 IST, the barometer index, the S&P BSE Sensex, was down 45.11 points or 0.08% to 59,681.90. The Nifty 50 index shed 8.10 points or 0.05% to 17,652.05.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.13% while the S&P BSE Small-Cap index gained 0.44%.

The market breadth was positive. On the BSE, 1,927 shares rose and 1,451 shares fell. A total of 117 shares were unchanged.

Investors turned cautious as uncertainty over the path of U.S. monetary policy largely outweighed optimism over an economic recovery in China. Focus is now on the Fed`s Beige Book report, due later on Wednesday, for the central bank`s take on the state of the U.S. economy.

Market concerns about rising interest rates returned in recent sessions as hawkish comments from Fed officials and indications of some economic resilience in the US stoked apprehension about when the Fed Fed will pause its rate hike cycle.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 1.07% to 12.21. The Nifty 27 April 2023 futures were trading at 17,691.10, at a premium of 39.05 points as compared with the spot at 17,652.05.

The Nifty option chain for the 27 April 2023 expiry showed maximum Call OI of 49.8 lakh contracts at the 18,000 strike price. Maximum Put OI of 60.3 lakh contracts were seen at 17,000 strike price.

Buzzing Index:

The Nifty Media index declined 0.62% to 1,699.50, extending losses for the fifth day in a row. The index slipped 2.63% in five trading sessions.

PVR (down 1.89%), Zee Entertainment Enterprises (down 0.96%), Navneet Education (down 0.44%), New Delhi Television (down 0.43%), TV18 Broadcast (down 0.34%), Network 18 Media & Investments (down 0.27%) and Sun TV Network (down 0.24%) edged lower.

On the other hand, Dish TV India (up 1.87%) ,Hathway Cable & Datacom (up 1.16%) and Nazara Technologies (up 0.11%) advanced.

Stocks in Spotlight:

Glenmark Pharmaceuticals advanced 1.17% after the company announced the settlement of patent litigation for generic, Zetia, a cholesterol treatment drug in the United States. The trial for this case is scheduled to begin on 19 April 2023 in the US courts.

IIFL Securities added 0.43%. The company said that its board is scheduled to meet on Monday, 24 April 2023 to consider issuance of secured or unsecured redeemable non-convertible debentures, in one or more tranches through private placement on an annual basis.

CMS Info Systems gained 2.28% after the company announced that the deployment of its proprietary security application `ALGO OTC` across 30% ATMs in India. This application helps banks implement RBI guidelines on OTC lock activation to ensure the mitigation of risks during ATM operations and enhancing security, the company said.

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