Nifty above 17,650 mark, PSU bank stocks advance

The key equity indices traded with decent gains in the early afternoon trade. The Nifty traded above the 17,650 mark after hitting the day`s low of 17,587.65 in the mid morning trade. PSU bank, oil & gas and metal stocks were in demand while FMCG, IT and media shares were under pressure.

At 12:28 IST, the barometer index, the S&P BSE Sensex, was up 95.06 points or 0.16% to 59,341.04. The Nifty 50 index gained 28.95 points or 0.16% to 17,694.75.

In the broader market, the S&P BSE Mid-Cap index rose 0.43% while the S&P BSE Small-Cap index added 0.38%.

The market breadth was positive. On the BSE, 1,787 shares rose and 1,514 shares fell. A total of 166 shares were unchanged.

Economy:

India`s overall coal production increased by 8.27% to over 58 million ton in August this year as compared to the same month last year. The Coal Ministry said that of the top 37 coal producing mines in the country, 25 mines produced more than 100% while the production level of five mines stood between 80% and 100%.

At the same time, the coal despatch has also increased by 5.41% to over 63 million tonnes as compared to August last year. The Ministry said the overall power generation in August this year has been 3.14% higher than the power generated in August last year.

Meanwhile, Indian Railways (IR) has recorded best ever August monthly freight loading of 119.32 MT in August 2022. The incremental loading has been 8.69 million tonnes, a growth of 7.86% over the same month last year. The Railway Ministry said with this, Indian Railways has had 24 straight months of best ever monthly freight loading.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, fell 1.36% to 19.40. The Nifty 29 September 2022 futures were trading at 17,718.80, at a premium of 24.05 points as compared with the spot at 17,694.75.

The Nifty option chain for the 29 September 2022 expiry showed maximum Call OI of 21.8 lakh contracts at the 18,000 strike price. Maximum Put OI of 33.6 lakh contracts were seen at 16,500 strike price.

IPO Updates:

The initial public offer (IPO) of Tamilnad Mercantile Bank received bids for 93,29,040 shares as against 87,12,000 shares on offer, according to stock exchange data 12:18 IST on Tuesday (6 September 2022). The issue was subscribed 1.07 times.

The issue opened for bidding on Monday (5 September 2022) and it will close on Wednesday (7 September 2022). The price band of the IPO is fixed at Rs 500-525 per share. An investor can bid for a minimum of 28 equity shares and in multiples thereof.

Buzzing Index:

The Nifty PSU Bank index rose 1.13% to 3,067.15. The index added 2.09% in two trading sessions.

Punjab National Bank (up 4.06%), Central Bank of India (up 3.11%), Bank of Maharashtra (up 1.94%), Indian Overseas Bank (up 1.4%), Bank of Baroda (up 1.16%), Punjab & Sind Bank (up 0.96%), UCO Bank (up 0.82%), Bank of India (up 0.49%), State Bank of India (up 0.46%) and Indian Bank (up 0.39%) edged higher.

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