Sensex tanks 1,401 pts, NSE VIX spurts to 21.94

The benchmark indices traded in a narrow range with major losses in early afternoon trade. The Nifty traded a tad below 15,800 level. All the sectoral indices on the NSE were in the red. IT, financial services and banks shares slumped.

Global cues were weak as investors shunned risky assets on worries that aggressive interest rate hikes by global central banks would stifle economic growth. On Friday, US government data showed inflation reached 8.6% in the 12 months ended in May, the steepest rise in consumer prices since December 1981.

At 11:21 IST, the barometer index, the S&P BSE Sensex, was down 1,401.56 points or 2.58% to 52,901.88. The Nifty 50 index tumbled 404.35 points or 2.50% to 15,797.45.

The broader market tumbled, the S&P BSE Mid-Cap index fell 2.11% while the S&P BSE Small-Cap index declined 2.30%.

Sellers outnumbered buyers, on the BSE, 636 shares rose and 2,698 shares fell. A total of 129 shares were unchanged.

Economy:

Industrial activity in April jumped 7.1% year on year, according to the index of industrial production (IIP) data released by the government on Friday. In comparison, industrial growth had expanded 1.9% in March. Growth in the mining sector was 7.8% in April 2022. The manufacturing sector expanded by 6.3%. Power sector showed a growth of 11.8% year on year in April 2022.

Derivatives:

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 12.09% to 21.9425. The Nifty 30 June 2022 futures were trading at 15,787, at a discount of 10.45 points as compared with the spot at 15,797.45

The Nifty option chain for 30 June 2022 expiry showed maximum Call OI of 25.2 lakh contracts at the 17,000 strike price. Maximum Put OI of 39 lakh contracts was seen at 16,000 strike price.

Buzzing Index:

The Nifty IT index dropped 3.53% to 28,087.40. The index has tumbled 5.63% in two sessions.

Mindtree (down 4.75%), Larsen & Toubro Infotech (down 4.63%), Mphasis (down 4.58%), Coforge (down 4.52%), Tech Mahindra (down 3.93%), L&T Technology Services (down 3.63%), Tata Consultancy Services (down 3.48%), Infosys (down 3.14%), HCL Technologies (down 2.55%) and Wipro (down 1.89%) edged lower.

Stocks in Spotlight:

Vedanta fell 4.43% after the company`s Iron & Steel sector has ventured into International Iron ore mining operations in Liberia, West Africa through its subsidiary Western Cluster Limited (WCL). WCL is a wholly owned subsidiary of Bloom Fountain (`BFL`), which is in turn a wholly-owned subsidiary of Vedanta. WCL had signed a Mineral Development Agreement with the Government of Liberia (`GoL`) for three Iron Ore Mining concessions in Liberia namely Bomi, Bea, and Mano in 2011. However, the operations could not be started due to outbreak of Ebola epidemic. WCL is set to restart its operation with further expansion potential through exploration, Vedanta said.

Life Insurance Corporation of India (LIC) dropped 4.96% as the 30-day lock-in period for anchor investors ended on Monday, 13 June 2022. The end of lock-in period will allow anchor investors to sell their existing shares in the market. Ahead of the IPO, LIC on 2 May 2022 raised Rs 5,627.27 crore from anchor investors by allotting about 5.93 crore shares to 123 investors at Rs 949 per share. The stock is currently down about 29% compared with its issue price.

RBL Bank slumped 17.56% after the bank appointed R Subramaniakumar as the new managing director and CEO of the bank for three years. Shares of the private sector bank hit an all time low of Rs 92.75 in intraday today on the BSE.

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