Barometers hit day's low; breadth positive

Key barometers sharply reversed trend and hit fresh intraday low in the early afternoon trade. The Nifty dropped nearly 100 points from its day's high and descended towards 10,800 level. Selling in NBFC stocks weighed on the indices.

At 12:20 IST, the barometer index, the S&P BSE Sensex, was down 132.17 points or 0.36% at 36,592.50. The Nifty 50 index declined 19.05 points or 0.18% at 10,825.60.

The broader market bucked trend. The S&P BSE Mid-Cap index was up 0.11%. The S&P BSE Small-Cap index was up 0.55%.

The market breadth was tilted towards the gainers. On the BSE, 1296 shares rose and 799 shares fell. A total of 125 shares were unchanged.

On the derivatives front, the NSE's India VIX, a gauge of market's expectation of volatility over the near term, was up 0.43% at 17.31.

The Nifty September 2019 futures were trading at 10,858.8, a premium of 26.7 points compared with the spot at 10,832.1.

On the options front, the Nifty option chain for 26 September 2019 expiry showed maximum call open interest (OI) of 21.23 lakh contracts at the 11,700 strike price. Maximum put OI of 31.46 lakh contracts was seen at 10,800 strike price. The option chain indicated that Nifty will stay between 10,800 and 11,000 till September expiry.

NBFC stocks witnessed selling. LIC Housing Finance (down 4.51%), Cholamandalam Investment and Finance Company (down 0.69%), Manappuram Finance (down 0.54%), IIFL Finance (down 0.45%), Edelweiss Financial Services (down 0.38%) and Muthoot Finance (down 0.12%) tumbled.

SRE Infrastructure Finance rose 2.81%. The firm signed a cooperation agreement at the Eastern Economic Forum with Quippo Oil and Gas Infrastructure and JSC Rosgeo today, 5 September 2019. The agreement was signed in presence of India's PM Narendra Modi and Russian president Vladimir Putin. The agreement will help in developing cooperation in the fields of land and marine geophysical work in India, airborne geophysical, gravity and magneto metric studies, and drilling operations in both India and Russia.

Ultratech Cement rose 1.13% to Rs 3,921.30 after the company appointed Kailash Chandra Jhanwar as managing director of the company with effect from 1 January 2020.

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