Indices trade with minor cuts; NSE VIX drops 2%

The benchmark indices traded near the flat line with minor losses in the early afternoon trade. The Nifty traded below the 16,950 level. Consumer durables, auto and FMCG shares advanced while PSU bank, IT and metal stocks corrected.

At 12:25 IST, the barometer index, the S&P BSE Sensex, was down 48.24 points or 0.09% to 53,367.91. The Nifty 50 index fell 7.40 points or 0.05% to 15,931.25.

In the broader market, the S&P BSE Mid-Cap index gained 0.16% while the S&P BSE Small-Cap index fell 0.11%.

The market breadth was negative. On the BSE, 1,434 shares rose and 1,685 shares fell. A total of 166 shares were unchanged.

Investors worried that aggressive interest rate hikes by global central banks would stifle economic growth.

Economy:

India`s merchandise exports in June 2022 were $40.13 billion, as compared to $32.49 billion in June 2021, exhibiting a positive growth of 23.52%. Merchandise imports in June 2022 were $66.31 billion, which is an increase of 57.55% over imports of $42.09 billion in June 2021.The merchandise trade deficit in June 2022 was estimated at $26.18 billion as against $9.60 billion in June 2021, which is an increase of 172.72%.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 1.99% to 17.98. The Nifty 28 July 2022 futures were trading at 15,936, at a premium of 4.75 points compared with the spot at 15,931.25.

The Nifty option chain for the 28 July 2022 expiry showed maximum Call OI of 27.5 lakh contracts at the 16,000 strike prices. Maximum Put OI of 30.7 lakh contracts was seen at 15,500 strike price.

Buzzing Index:

The Nifty Consumer Durables index rose 0.95% to 24,754.35, continuing its gaining streak to the third day. The index rose 1.33% in the three trading sessions.

Among the components of the Nifty Consumer Durables index, Titan Company (up 2.28%), Crompton Greaves Consumer Electricals (up 1.34%), Whirlpool of India (up 1.22%), Dixon Technologies (India) (up 1.02%) and Bata India (up 0.95%) were the top gainers.

Among the other gainers were Amber Enterprises India (up 0.76%), Blue Star (up 0.76%), Orient Electric (up 0.76%), Havells India (up 0.58%).

On the other hand, V-Guard Industries (down 0.98%), TTK Prestige (down 0.88%) and Rajesh Exports (down 0.85%) turned lower.

Stocks in Spotlight:

Tata Steel Long Products declined 3.13% to Rs 584 after the company reported a net loss of Rs 331.09 crore as against a net profit of Rs 331.60 in Q1 FY23 over Q1 FY22. Net sales during the quarter increased 18.2% year on year to Rs 1,994.25 crore. Pre-tax loss stood at Rs 334.80 crore in Q1 FY23 as against a profit before tax of Rs 444.03 crore posted in Q1 FY22.

Cipla rose 0.59% to Rs 956.50. The drug major said its wholly-owned subsidiary, Cipla Health, has signed definitive agreements for acquisition of Endura Mass from Medinnbelle Herbalcare. Endura Mass is a renowned nutritional supplement brand in the category of weight gain. "Endura and all other associated trademarks would be part of the acquisition," Cipla said in a statement on Thursday, 14 July 2022. Cipla Health (CHL) will immediately initiate the distribution and marketing of the said products pending the closure of the proposed acquisition.

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