Baromerters hit day's low; India VIX up 2.5%

The Sensex and the Nifty extended losses and hit fresh intraday low in early afternoon trade. At 12:21 IST, the S&P BSE Sensex, dropped 259.09 points or 0.62% and traded at 41,693.54. The Nifty 50 index was down 71.95 points or 0.58% at 12,290.35.

Investors locked profits after other Asian stock markets came under selling pressure. Sentiment took a hit after US Treasury Secretary said that the United States would keep in place tariffs on Chinese goods until the completion of a second phase of a US-China trade agreement.

In the broader market, the S&P BSE Mid-Cap index was up 0.2% while the S&P BSE Small-Cap index rose 0.6%. Both these indices outperformed the benchmarks.

The market breadth was positive. On the BSE, 1126 shares rose and 1058 shares fell. A total of 178 shares were unchanged. In Nifty 50 index, 18 stocks advanced while 32 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.47% to 14.2575. The Nifty January 2020 futures were trading at 12,340.30, a premium of 34.8 points compared with the spot at 12,305.5.

On the options front, the Nifty option chain for 30 January 2020 expiry showed maximum call open interest (OI) of 28.93 lakh contracts at the 12,500 strike price. Call writing was witnessed at 12,500 strike price, which added 2.12 lakh contracts.

Maximum put OI of 42.48 lakh contracts was seen at 12,000 strike price. Significant put unwinding was seen at the 12,000 strike price, which shed 1.89 lakh contracts.

The option chain indicates that the Nifty will hover between 12,000 and 12,500 level in January.

Stocks in Spotlight:

Yes Bank rallied 2.98% to Rs 39.70 on bargain hunting after a steep selling in the past three sessions. Shares of Yes Bank tumbled 18.50% in three sessions to Rs 38.55 on 14 January 2020, from its closing high of Rs 47.30 on 9 January 2020.

Yes Bank announced post trading hours on Tuesday, 14 January 2020, that it will hold extraordinary general meeting on 7 February to seek shareholders' nod to raise Rs 10,000 crore via combination of equity and debt.

Meanwhile, Yes Bank after market hours on Tuesday, 14 January 2020, said that it acquired 12,73,21,500 equity shares, or 29.97% equity, of Rosa Power Supply Company, a wholly owned subsidiary of Reliance Power, pursuant to invocation of pledge of shares.

The Rosa thermal plant (1,200 MW) at Shahjahanpur in Uttar Pradesh, owned by the Rosa Power Supply Company generated 4341 million units in the year ended 31 March 2019.

Alembic Pharmaceuticals advanced 1.50% to Rs 570.45 after the company said it has received final nod from the US drug regulator for Tizanidine hydrochloride capsules, used to treat spasticity. The company also received tentative approval from USFDA for its ANDA Empagliflozin tablets, 10 mg and 25 mg. It is indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus.

Shares of L&T were trading 0.51% higher at Rs 1332.75. The company said it won 'large' orders from various business across the country. L&T classifies large orders between value of Rs 2500 crore and Rs 5000 crore.

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