loader2
Partner With Us NRI

Nifty above 17,850; IT stocks correct

Published on Jan 05, 2022 12:33

The main indices traded at the day`s high with modest gains in early afternoon trade. The Nifty crossed the 17,850 level. Firmness in banks and financial stocks supported the up move. IT stocks corrected after a four day rally.

At 12:31 IST, the barometer index, the S&P BSE Sensex, jumped 226.42 points or 0.38% at 60,082. The Nifty 50 index added 73.05 points or 0.41% at 17,878.95.

In the broader market, the S&P BSE Mid-Cap index rose 0.38% while the S&P BSE Small-Cap index gained 0.14%.

The market breadth was positive. On the BSE, 1,795 shares rose and 1,514 shares fell. A total of 104 shares were unchanged.

COVID-19 Update:

In last 24 hours, India recorded 58,097 new covid case taking the country`s active caseload to 2,14,004 patients. The country reported 534 new deaths taking the death toll to 4,82,551 since the beginning of the pandemic.

Meanwhile, India recorded 2,135 cases of Omicron infection as of Tuesday, the most in Maharashtra with 653 cases, followed by Delhi with 464 cases.

Derivatives:

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, rose 3.86% to 16.7425. The Nifty 27 January 2022 futures were trading at 17,878 at a premium of 38 points as compared with the spot at 17,840.

The Nifty option chain for 27 January 2022 expiry showed maximum Call OI of 19.6 lakh contracts at the 18,000 strike price. Maximum Put OI of 37 lakh contracts was seen at 17,000 strike price.

Buzzing Index:

The Nifty IT index declined 1.97% to 38,593.15, snapping its four day winning streak. The IT index saw profit booking after rising nearly 3% in four trading sessions.

Coforge (down 2.87%), Tech Mahindra (down 2.79%), Infosys (down 2.51%), Mphasis (down 2.35%), Mindtree (down 2.13%), L&T Infotech (down 1.93%), Wipro (down 1.69%) and HCL Technologies (down 1.58%) were top losers in IT space.

Stocks in Spotlight:

Larsen & Toubro fell 0.11%. The heavy engineering arm of Larsen & Toubro (L&T) won significant contracts for its various business segments in Q3 FY22. The modification, revamp and upgrade (MRU) business of L&T Heavy Engineering has been awarded a contract by a hydrocarbon sector customer in the Middle East. The contract covers detailed engineering, supply of critical equipment & components, leading into multi- disciplinary site work involving multiple staggered shutdowns during which the revamp work would be carried out.

According to L&T`s classification, the value of `significant` contracts lies between Rs 1,000 crore to Rs 2,500 crore.

Deep Polymers declined 2%. The company said that its board will meet on Saturday, 15 January 2022, to consider and approve issue of bonus shares to the existing equity shareholders of the company. On the same day, the board will also consider plans to raise funds up to an aggregate value not exceeding Rs 50 crore and form a committee of directors to decide matters relating to the rights issue. Simultaneously, the board will consider and fix the Record date for the proposed issue of the company.

Powered by Capital Market - Live News