Nifty slips below 17,500; breadth remains positive

Equity indices traded with small losses in early afternoon trade. At 12:30 IST, the S&P BSE Sensex fell 54.65 points or 0.09% at 58,629.07. The Nifty 50 index fell 8.3 points or 0.04% at 17,489.80.

The broader market outperformed the main indices. The S&P BSE Mid-Cap index added 0.28% while the S&P BSE Small-Cap index rallied 0.58%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, shares 1,720 rose and 1,564 shares fell. A total of 133 shares were unchanged.

Trading turned volatile as March 2022 F&O contracts expire today, 31 March 2022.

Economy:

India Ratings and Research (Ind-Ra) stated that its FY23 Economic Outlook released in the month of January 2022, is unlikely to hold in view of the global geo-political situation arising out of the Russia-Ukraine conflict. Since the duration of Russia-Ukraine conflict continues to be uncertain, Ind-Ra has created two scenarios with respect to the FY23 economic outlook basis certain assumptions.

Derivatives:

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, rose 0.7% to 20.755. The Nifty 31 March 2022 futures were trading at 17,487, at a premium of 2 points as compared with the spot at 17,485.

Buzzing Index:

The Nifty Metal index added 0.56% to 6,465.2, resuming its rally after a day`s a pause. The index fell 2.17% in previous trading session.

Vedanta (up 2.7%), Jindal Steel & Power (up 2.47%), NMDC (up 2.32%), JSW Steel (up 1.75%) and Steel Authority of India (up 1.48%) were the top gainers. Among the other gainers were Hindustan Zinc (up 0.71%) and Tata Steel (up 0.68%)

Stocks in Spotlight:

Tejas Networks was locked in an upper circuit of 5% at Rs 424.9 after the company signed a definitive agreement to acquire 64.4% stake in Saankhya Labs Private Limited for a cash consideration of Rs 283.94 crore. The company will buy 62,51,496 equity shares of Saankya Labs, post acquisition Tejas Networks will hold 64.4% equity share capital in the company. The initial acquisition of shares is likely to be completed within next 90 days. The company also intends to proceed with acquiring the balance 35.6% shares through a merger or secondary acquisition. Saankhya Labs is a wireless communication and semiconductor solutions firm with wide range of products for 5G-based cellular wireless, broadcast radios and satellite communication.

Cosmo Films added 3.89% after the company announced the setting up CPP film production line at Aurangabad with annual rated capacity of 25,000 MT. The CPP line will require an investment of about Rs 140 crore to be funded through internal accruals and debts and is expected to commence commercial production in 2 years.

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