Barometers further pare gains; Nifty slips below 17,850; breadth turns negative

The key equity benchmarks further trimmed gains in the early afternoon trade. The Nifty slipped below the 17,850 mark. Bank shares extended gains for the second consecutive trading session. Tracking positive global cues, investors digested hawkish remarks from Fed policymakers and the European Central Bank's largest-ever hike in its key interest rate.

At 12:24 IST, the barometer index, the S&P BSE Sensex, was up 101.28 points or 0.17% to 59,789.50. The Nifty 50 index gained 32.80 points or 0.18% to 17,831.55.

In the broader market, the S&P BSE Mid-Cap index rose 0.04% while the S&P BSE Small-Cap index gained 0.15%.

The market breadth was negative. On the BSE, 1,644 shares rose and 1,689 shares fell. A total of 141 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 2.70% to 17.81. The Nifty 29 September 2022 futures were trading at 17,847.00, at a premium of 15.45 points as compared with the spot at 17,831.55.

The Nifty option chain for the 29 September 2022 expiry showed maximum Call OI of 82.2 lakh contracts at the 18,000 strike price. Maximum Put OI of 67.3 lakh contracts were seen at 17,000 strike price.

Buzzing Index:

The Nifty Bank index rose 0.82% to 40,539.95, extending its gaining streak for the second day. The index gained 2.75% in two trading sessions.

Among the components of the Nifty Bank index, IndusInd Bank (up 2.86%), State Bank of India (up 1.96%), Federal Bank (up 1.27%), Punjab National Bank (up 1.17%) and Bandhan Bank (up 0.82%) were the top gainers.

Among the other gainers were AU Small Finance Bank (up 0.7%), Bank of Baroda (up 0.69%), HDFC Bank (up 0.65%), ICICI Bank (up 0.46%) and Axis Bank (up 0.46%).

On the other hand, IDFC First Bank (down 1.27%) declined.

Stocks in Spotlight:

Mahindra & Mahindra (M&M) declined 1.05%. The auto giant announced that the company's total production of automobiles soared 82.87% to 60,751 units in August 2022 as compared with 33,220 units sold in the same period a year ago. The automobile major's total sales zoomed 104.84% to 56,137 units in August 2022 as against 27,405 units sold in August 2021. Meanwhile, exports for the period under review stood at 2,912 units (down 8.43% YoY).

Lupin rose 0.57%. The drug major announced the launch of Sodium Sulfate, Potassium Sulfate and Magnesium Sulfate oral solution in the US market with an approval from the US Food and Drug Administration (USFDA). The said drug is an equivalent generic version of Suprep Bowel prep kit oral solution.

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