Sensex plummets 731 pts, Nifty below 17,100, VIX jumps over 6%

The headline equity indices continued to trade in a narrow range with major losses in the early afternoon trade. Weak global cues played the spoilsport. The Nifty hovered below the 17,100 level. Barring the Nifty IT index, all the sectoral indices on the NSE were in the red with.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 730.77 points or 1.26% to 57,368.15. The Nifty 50 index declined 244.25 points or 1.41% to 17,083.10.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index fell 2.72% while the S&P BSE Small-Cap index lost 3.15%

Sellers outnumbered buyers. On the BSE, 499 shares rose, and 2,981 shares fell. A total of 119 shares were unchanged.

The Reserve Bank of India (RBI)`s six-member Monetary Policy Committee is scheduled to meet this week during 28-30 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.

In the past three policy reviews, the RBI`s rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, climbed 6.45% to 21.92. The Nifty 29 September 2022 futures were trading at 17,048, at a discount of 35.1 points as compared with the spot at 17,083.10.

The Nifty option chain for the 29 September 2022 expiry showed maximum Call OI of 108.8 lakh contracts at the 18,000 strike price. Maximum Put OI of 75.3 lakh contracts were seen at 17,000 strike price.

Buzzing Index:

The Nifty Metal index slipped 3.86% to 5,794.70.The index tumbled 5.02% in two trading sessions.

Hindustan Copper (down 6.16%), Jindal Stainless (down 6.02%), Hindalco Industries (down 5.36%), Jindal Steel & Power (down 5.27%), National Aluminium Company (down 5.27%), Vedanta (down 5.2%), Ratnamani Metals & Tubes (down 4.68%), Welspun Corp (down 4.31%), Tata Steel (down 4.27%) and Steel Authority of India (down 4.09%) slumped.

Jindal Stainless dropped 6.02%. The board of Jindal Stainless (JSL) approved issuing upto 990 rated, listed, unsecured, redeemable, NCDs having face value of Rs 10 lakh each, aggregating to Rs 99 crore, through private placement basis.Tenure of the NCDs is for 48 months. Coupon shall be fixed at 8.62% per annum and shall be payable annually from the allotment date.

Stocks in Spotlight:

Balaji Amines skid 3.25%. The speciality chemical maker announced that it has completed Phase 1 of Greenfield project Unit IV and it will further add new capacities in Phase 2 of Greenfield project unit IV. The company said that the commercial production of di-methyl carbonate (DMC) / propylene carbonate (PC) and propylene glycol (PG) has commenced at the company`s newly set up plant in MIDC, Chincholi, Solapur with effect from 26 September 2022. The firm further added that it has received the environmental clearance & Maharashtra Pollution Control Board permission in the form of consent to operate and has completed the Phase 1 of Greenfield project Unit IV.

PVR fell 2.17%. The multiplex chain operator on Monday (26 September 2022) announced the launch of its first Premium Extra Large P [XL] format in Pune. The launch of its P[XL] format comes up in its new 6 screen multiplex located at Grand Highstreet Mall, Hinjewadi, Pune. With this launch, PVR Cinemas has augmented its presence in Pune with 37 screens across six properties and consolidated its foothold in Maharashtra with 143 screens in 30 properties and 239 screens across 52 properties in West.

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