Sensex slides 483 pts, Nifty below 17000, VIX jumps over 3%

The domestic equity barometers traded with deep cuts in the early afternoon trade. Negative global cues dented the sentiments. The Nifty slipped below the 17,000 level. Pharma and healthcare index advanced while bank, financial services and consumer durables shares witnessed a bit of a selling pressure.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 482.87 points or 0.84% to 57,143.04. The Nifty 50 index lost 145.35 points or 0.85% to 16,978.25.

In the broader market, the S&P BSE Mid-Cap index fell 0.87% while the S&P BSE Small-Cap index declined 0.59%.

The market breadth was weak. On the BSE, 1,093 shares rose and 2,192 shares fell. A total of 142 shares were unchanged.

Economy:

India`s consumer price inflation rose to a five-month high of 7.41% in September from 7% in August, data from the National Statistical Office showed on Wednesday. In the same period last year, inflation was 4.35%. The inflation rate was well above the Reserve Bank of India`s medium term target of 4%.

Industrial production in India declined 0.8% year-over-year in August, reversing a 2.2% rise in July, official data showed. Further, this was the first decrease since February 2021. Among three main sectors, mining output fell the most, by 3.9%, followed by a 0.7% contraction in manufacturing production. On the other hand, electricity production registered a positive growth of 1.4%. In the April to August period, the industrial production posted an expansion of 7.7% annually.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, climbed 3.09% to 20.80. The Nifty 27 October 2022 futures were trading at 16,972.90, at a discount of 5.35 points as compared with the spot at 16,978.25.

The Nifty option chain for the 27 October 2022 expiry showed maximum Call OI of 37.7 lakh contracts at the 18,000 strike price. Maximum Put OI of 49.9 lakh contracts were seen at 17,000 strike price.

Buzzing Index:

The Nifty Financial Services index declined 1.23% to 17,386.95.The index added 0.85% in the past trading session.

Shriram Transport Finance Company (down 2.45%), State Bank of India (down 2.17%), Cholamandalam Investment & Finance Company (down 2.03%), ICICI Bank (down 1.88%), SBI Life Insurance Company (down 1.82%), ICICI Prudential Life Insurance Company (down 1.53%), HDFC Bank (down 1.53%), SBI Cards & Payment Services (down 1.28%) and Housing Development Finance Corporation Ld (down 1.19%) slipped.

Stocks in Spotlight:

NTPC shed 0.03%. NTPC and Siemens signed a Memorandum of Understanding (MoU) to demonstrate the feasibility for hydrogen co-firing blended with natural gas in Siemens V94.2 gas turbines installed at NTPC Faridabad gas power plant. The total installed capacity of Faridabad gas power plant is 432 megawatt (MW) with two V94.2 gas turbines operating in combined cycle mode.

Kalpataru Power Transmission gained 1.67% after the company announced the completion of the sale and transfer of an additional approximately 25% of the total equity shares of Alipurduar Transmission to Adani Transmission. On 5 July 2020, Kalpataru Power had announced the signing of definitive agreements to sell Alipurduar Transmission to Adani Transmission for a total enterprise value of about Rs 1,286 crore.

Tanla Platforms surged 7.12% after the company fixed 25 October 2022 as the record date for proposed share buyback. The board of Tanla Platforms fixed Tuesday, 25 October 2022, as the record date for determining the names of shareholders eligible to participate in the proposed share buyback. The company announced last month that it plans to buyback shares at Rs 1,200 each for an aggregate amount not exceeding Rs 170 crore.

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