Sensex drops 604 pts; NSE VIX above 21 mark

The domestic equity barometers extended losses and hit the day`s low in early afternoon trade. The Nifty traded below 17,000 mark. Except for banks, all the sectoral indices on the NSE were currently in the red.

At 12:23 IST, the barometer index, S&P BSE Sensex was down 604.34 points or 1.06% to 56,592.81. The Nifty 50 index fell 215.55 points or 1.26% to 16,956.40.

The broader market tumbled. The S&P BSE Mid-Cap index fell 1.88% while the S&P BSE Small-Cap index declined 1.59%.

The market breadth was weak. On the BSE, 1,001 shares rose while 2,382 shares fell. A total of 143 shares were unchanged.

Derivatives:

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, surged 14.84% to 21.08. The Nifty 28 April 2022 futures were trading at 16,923.25, at a discount of 33.15 point as compared with the spot at 16,956.40.

The Nifty option chain for 28 April 2022 expiry showed maximum Call OI of 91.5 lakh contracts at the 17,800 strike price. Maximum Put OI of 83.2 lakh contracts was seen at 17,000 strike price.

Economy:

Indonesia announced its plans to ban export of palm oil from 28 April 2022. The county is the world`s top palm oil producer while India is the world`s largest importer of edible oils, and specifically the highest importer of palm oil and soyabean oil. The media reported that the ban on palm oil could trigger further inflation worries for India.

Buzzing Index:

The Nifty Bank index rose 0.16% to 36,103.25. It was the only sectoral index currently in the green on the NSE. The index declined 2.10% on Friday.

Bandhan Bank (up 0.91%) and Axis Bank (up 0.75%) advance.

RBL Bank (down 2.86%), IDFC First Bank (down 1.62%), Federal Bank (down 1.41%), Punjab National Bank (down 1.13%), SBI (down 0.95%), IndusInd Bank (down 0.80%), Kotak Mahindra Bank (down 0.40%), HDFC Bank (down 0.39%) and AU Small Finance Bank (down 0.38%) declined.

ICICI Bank advanced 1.20% to Rs 756.30. The private lender`s standalone net profit rose 59.42% to Rs 7,018.71 crore on 14.44% increase in total income to Rs 27,412.32 crore in Q4 March 2022 over Q4 March 2020.

Net interest income (NII) increased by 21% year-on-year to Rs 12,605 crore in Q4 FY22. Net interest margin was 4% in Q4 FY22 compared to 3.84% in Q4 FY21 and 3.96% in Q3 FY22.

The bank`s provisions and contingencies (excluding tax provisions) fell 62.93% to Rs 1,068.95 crore in Q4 FY22 over Q4 FY21.

The ratio of gross NPAs to gross advances stood at 3.60% as on 31 March 2021 as against 4.13% as on 31 December 2021 and 4.96% as on 31 March 2020. The ratio of net NPAs to net advances stood at 0.76% as on 31 March 2021 as against 0.85% as on 31 December 2021 and 1.14% as on 31 March 2020.

Total deposits increased by 14% year-on-year and 5% sequentially to Rs 1,064,572 crore at 31 March 2022. Total advances increased by 17% year-on-year and 6% sequentially to Rs 859,020 at 31 March 2022.

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