NIFTY ABOVE 24,150 MARK; VIX DROPS 3.55%

The headline equity indices traded with minor gains in early afternoon trade. The Nifty traded the 24,150 mark. Pharma shares extended losses for the third day in a row.

At 12:28 IST, the barometer index, the S&P BSE Sensex, was up 161.41 points or 0.20% to 79,117.44. The Nifty 50 index added 23.25 points or 0.10% to 24,162.25.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.42% and the S&P BSE Small-Cap declined 0.65%.

The market breadth was weak. On the BSE, 1,391 shares rose and 2,396 shares fell. A total of 121 shares were unchanged.

Due to the observance of Independence Day on Thursday, 15 August 2024, the domestic market will be closed. Consequently, the Nifty weekly options expiry has been shifted to today.

Economy :

The annual rate of inflation based on all India Wholesale Price Index (WPI) number is 2.04% (Provisional) for the month of July, 2024 (over July, 2023). Positive rate of inflation in July, 2024 is primarily due to increase in prices of food articles, manufacture of food products, mineral oils, crude petroleum & natural gas, other manufacturing etc. The month over month change in WPI index for the month of July, 2024 stood at 0.84% as compared to June, 2024.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 3.55% to 15.59. The Nifty 29 August 2024 futures were trading at 24,178.10, at a premium of 15.85 points as compared with the spot at 24,162.25.

The Nifty option chain for the 29 August 2024 expiry showed maximum Call OI of 39.6 lakh contracts at the 25,000 strike price. Maximum Put OI of 45.5 lakh contracts were seen at 24,000 strike price.

Buzzing Index:

The Nifty Pharma index fell 0.97% to 21,975.70. The index declined 1.05% in three consecutive trading sessions.

Divis Laboratories (down 4.14%), Ipca Laboratories (down 3.2%), Biocon (down 2.88%), Torrent Pharmaceuticals (down 2.17%), Aurobindo Pharma (down 1.77%), Granules India (down 1.41%), Zydus Lifesciences (down 1.31%), Lupin (down 0.99%), Abbott India (down 0.99%) and Dr Reddys Laboratories (down 0.88%) edged lower.

On the other hand, Mankind Pharma (up 1.72%), Natco Pharma (up 1.13%) and J B Chemicals & Pharmaceuticals (up 0.79%) advanced.

Stocks in Spotlight :

Nazara Technologies shed 1.65%. The gaming and sports media company`s consolidated net profit (from continuing operations) increased 13.23% to Rs 23.62 crore in Q1 FY25 from Rs 20.86 crore reported in Q4 FY23. Revenue from operations stood at Rs 250.08 crore in Q1 FY25, down 1.71% from Rs 254.43 crore reported in the same period a year ago.

FSN E-Commerce Ventures (Nykaa) advanced 2.63% after the company reported a consolidated net profit of Rs 13.64 crore in Q1 FY25, steeply higher than Rs 5.42 crore posted in Q1 FY24. Revenue from operations grew at a healthy pace of 23% year on year to Rs 1,746.11 crore in Q1 FY25, in line with last 2 year CAGR.

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