Sensex spurts 440 pts, Nifty above 17,700 level, NSE VIX slips over 4%

The key equity indices traded with modest gains in the early afternoon trade. The Nifty traded above the 17,700 level. Bank, financial services and auto stocks advanced while metal, media and consumer durables stocks declined. Gains in domestic equity benchmarks mirrored the uptick in their Asian peers.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 440.23 points or 0.75% to 59,469.14. The Nifty 50 index added 118.60 points or 0.67% to 17,743.

In the broader market, the S&P BSE Mid-Cap index rose 0.34% while the S&P BSE Small-Cap index advanced 0.67%.

The market breadth was strong. On the BSE, 2,157 shares rose and 1,202 shares fell. A total of 142 shares were unchanged.

Economy:

The Union Cabinet has approved policy on long term leasing of railway land for implementing PM Gati Shakti framework. The plan will not incure any additional expenditure. However, liberalizing the land leasing policy will open avenues for all stakeholders/service providers/operators to establish more cargo related facilities. Besides bringing more revenue to railways, the plan will attract more cargo to railways, increase railways` modal share in freight transportation thereby reducing logistics cost of the industry.

It will simplify approvals for utilities as envisaged in PM Gati Shakti Programme. It will also help in development of public utilities like electricity, gas, water supply, telecom cable, sewage disposal, drains, optical fibre cables (OFC), pipelines, roads, flyovers, but terminals, regional rail transport, urban transport etc. in an integrated manner. This policy amendment will enable employment generation potential of about 1.2 lakh employment.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, dropped 4.56% to 18.48. The Nifty 29 September 2022 futures were trading at 17,748.90, at a premium of 5.9 points as compared with the spot at 17,743.

The Nifty option chain for the 29 September 2022 expiry showed maximum Call OI of 23.5 lakh contracts at the 18,000 strike price. Maximum Put OI of 35.6 lakh contracts were seen at 16,500 strike price.

Buzzing Index:

The Nifty Financial Services index rose 0.97% to 18,316.35. The index declined 0.68% in past two trading sessions.

ICICI Bank (up 2.54%), Axis Bank (up 2.38%), HDFC Life Insurance Company (up 1.16%), State Bank of India (up 1%), Kotak Mahindra Bank (up 0.84%), SBI Cards & Payment Services (up 0.83%), Shriram Transport Finance Company (up 0.74%), Bajaj Finance (up 0.73%) and HDFC Asset Management Company (up 0.7%) edged higher.

On the other hand, SBI Life Insurance Company (down 1.13%), REC (down 0.79%) and ICICI Lombard General Insurance Company (down 0.74%) declined.

Retail vehicle sales in August:

Total vehicle retail for the month of August 2022 saw a year-on-year (YoY) growth of 8%, the Federation of Automobile Dealers Associations (FADA) said in a statement today, 8 September 2022. Except tractors retail, which decreased 32% YoY, all the other categories grew last month. Two-wheelers (2W), three wheelers (3W), passenger vehicles (PV) and commercial vehicles (CV) were up by 8.5%, 83%, 6.5% and 24%, respectively.

When compared with August 2019, a pre-covid month, total vehicle retails continued to fall by 7%. While PV showed a double-digit healthy growth of 41%, growth in CV also turned positive by 6%. All the other categories were in red with 2W, 3W and tractors falling by 16%, 1% and 7%, respectively.

Stocks in Spotlight:

Dr. Reddy`s Laboratories added 0.30%. The drug major on Wednesday announced the launch of Lenalidomide capsules in the US market with an approval from the US Food and Drug Administration (USFDA). The said drug is the therapeutic equivalent generic version of Revlimid (lenalidomide) capsules. The pharmaceutical company said with this volume-limited launch, the company is eligible for first-to-market, 180 days of generic drug exclusivity for Lenalidomide Capsules in 2.5 mg and 20 mg strengths.

Hindustan Zinc rose 0.16%. The company announced that it has incorporated a wholly owned subsidiary named Hindustan Zinc Fertilisers on 7 September, 2022. The company said it has incorporated Hindustan Zinc Fertilisers to manufacture, sale and dealing of multiple grades of nitrogenous, phosphatic, potassic fertilizers; chemical & other allied items and generally dealing in all types, classes and kinds of fertilizers, their intermediates, co-products and micro-nutrients in India & elsewhere.

Hindustan Zinc said it will fully subscribe 1,00,000 equity shares of Hindustan Zinc Fertilisers of the face value of Rs 10 each aggregating to Rs 10 lakh.

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