Sensex drops 332 pts; India Vix rises 6%

The key equity indices continued to trade with modest losses in the early afternoon trade. Nifty traded below the 17,000 mark after hitting day`s high at 17,114.65 in the early trade. Pharma, healthcare and oil & gas shares advanced while metal, bank and financial services stocks declined.

At 12:29 IST, the barometer index, the S&P BSE Sensex, was down 331.85 points or 0.58% to 57,095.07. The Nifty 50 index lost 105.10 points or 0.61% to 16,989.25.

In the broader market, the S&P BSE Mid-Cap index rose 0.02% while the S&P BSE Small-Cap index added 0.32%.

The market breadth was positive. On the BSE, 1,720 shares rose and 1,645 shares fell. A total of 193 shares were unchanged.

The sell-off being witnessed in equities across Asia follows the Wall Street`s tumultuous performance last week amid concerns of a global recession grew amid tightening monetary policy and jitters in currency and bond markets.

Economy:

India collected Rs 1.48 lakh crore as Goods and Services Tax (GST) in September, registering an increase of 26% from the same month last year, the finance ministry said on October 1. The September GST mop-up was 2.8% higher from August.

India`s eight core infrastructure sectors` output grew 3.3% in August 2022, lowest in past nine months, as against 12.2% in the year-ago period, according to official data released on Friday. The previous low was in November 2021 at 3.2%. The production growth of eight infrastructure sectors - coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity - was 9.8% during April-August this fiscal, compared to 19.4% a year ago.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 6% to 21.1675. The Nifty 27 October 2022 futures were trading at 16,982.30, at a discount of 6.95 points as compared with the spot at 16,989.25.

The Nifty option chain for the 27 October 2022 expiry showed maximum Call OI of 80.9 lakh contracts at the 17,000 strike price. Maximum Put OI of 85.1 lakh contracts were seen at 17,000 strike price.

Buzzing Index:

The Nifty Bank index declined 1.22% to 38,199.10. The index advanced 2.61% in the past trading session.

Among the components of the Nifty Bank index, AU Small Finance Bank (down 2.13%), Kotak Mahindra Bank (down 1.88%), IndusInd Bank (down 1.76%), ICICI Bank (down 1.14%), HDFC Bank (down 0.88%), State Bank of India (down 0.64%), Axis Bank (down 0.46%), Bandhan Bank (down 0.32%) and Punjab National Bank (down 0.14%) were the losers.

On the other hand, IDFC First Bank (up 0.9%) ,Federal Bank (up 0.29%) and Bank of Baroda (up 0.11%) advanced.

Stocks in Spotlight:

TVS Motor Company declined 1.58%. The 2-wheeler maker`s total sales rose by 9% in September 2022 with sales of 379,011 units as against 347,156 units in the month of September 2021. Total two-wheelers sales grew 9% to 361,729 units in September 2022 as compared to 332,511 units sold in September 2021. Domestic two-wheeler sales stood at 283,878 units in September 2022, registering a growth of 16% from 244,084 units sold in the same period last year.

Zydus Lifesciences gained 5% after its US subsidiary, Zydus Pharmaceuticals (USA) Inc. received final approval from the United States Food and Drug Administration (USFDA) to market Mirabegron extended-release tablets. Zydus Life was one of the first ANDA applicants to submit a substantially complete ANDA with a paragraph IV certification for Mirabegron extended-release tablets and therefore is eligible for 180 days of shared generic drug exclusivity for the drug.

Hero MotoCorp rose 0.73%. The two-wheeler major`s total sales declined 1.95% to 519,980 units in September 2022 as against 530,346 units sold in September 2021. Sequentially, this translates into a growth of 12.4% over the month of August 2022, when the company had sold 462,608 units.

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