Barometers hit day's low; breadth turns weak

Barometers extended losses and hit fresh intraday low in early afternoon trade. The Nifty took support at 11,500 mark. At 12:26 IST, the barometer index, the S&P BSE Sensex, tumbled 281.21 points or 0.72% at 39,021.64. The Nifty 50 index fell 78.95 points or 0.68% at 11,525.70.

Negative global cues spoiled sentiment. Global shares declined after the US Federal Reserve indicated its benchmark interest rate will stay close to zero at least through 2023 but announced no additional stimulus plans.

The broader market came under selling pressure after rallying for three days. The S&P BSE Mid-Cap index was down 0.34% while the S&P BSE Small-Cap index slipped 0.61%.

In the past three sessions, the midcap index and the smallcap index jumped 2.63% and 5.99%, respectively. The broader market was in demand after the Sebi on 11 September issued a circular mandating multi cap funds to allocate least 25% of their portfolios in large-, mid- and small-caps each by February 2021.

Sellers outpaced buyers. On the BSE, 942 shares rose and 1511 shares fell. A total of 148 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 264.66 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 212.21 crore in the Indian equity market on 16 September, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 29,763,811 with 9,39,456 deaths. India reported 10,09,976 active cases of COVID-19 infection and 83,198 deaths while 40,25,079 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

The government said that the country's recovery rate among the COVID-19 patients has reached to 78.64%. During the last 24 hours, more than 82 thousand COVID patients have been recovered. Health Ministry said the total number of recoveries has reached over 40.25 lakh.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 4.5% to 20.545. The Nifty September 2020 futures were trading at 11,498.40, at a discount of 22.05 points compared with the spot at 11,520.45.

The Nifty option chain for 17 September 2020 expiry showed maximum Call OI of 84.1 lakh contracts at the 11,600 strike price. Maximum Put OI of 60.40 lakh contracts was seen at 11,500 strike price.

The Nifty option chain for 24 September 2020 expiry showed maximum Call OI of 29.20 lakh contracts at the 12,000 strike price. Maximum Put OI of 33.04 lakh contracts was seen at 11,500 strike price.

Buzzing Index:

The Nifty Auto index fell 1.14% to 8,063.15 on profit booking after yesterday's 1.53% rise.

Tata Motors (down 3.04%), Bosch (down 2.15%), Bajaj Auto (down 1.63%), Bharat Forge (down 1.58%), Maruti Suzuki (down 1.37%), Eicher Motor (down 1.09%) and TVS Motor (down 0.95%) were top losers in Nifty Auto index.

Ashok Leyland fell 1.78%. The company on Thursday said it received a large order from a logistics start-up company, Procure Box. The start-up has placed an order of 1400 intermediate commercial vehicles for its fuel distribution business across 750 districts, in the country. The order encompasses the Ashok Leyland product - the Ecomet - and will be executed in the next 5-6 months.

Stocks in Spotlight:

Larsen & Toubro fell 1.08%. L&T on Thursday said its metallurgical and material handling arm secured a 'significant' order from Northern Coalfields, a subsidiary of Coal India (CIL). The order is for a coal processing and load out package to be installed at the Dudhichua Mines located in Uttar Pradesh. The scope of work involves EPC for a double stream coal sizing & transportation system covering semi mobile sizing system, high capacity specialty conveyors, and an automated loading system. According to L&T's classification, the valuation of the 'significant' lies between Rs 1,000 crore to Rs 2,500 crore.

Dr Reddys Laboratories jumped 3.24% to Rs 4,781.40 after the drug major announced the launch of over-the-counter Olopatadine Hydrochloride Ophthalmic Solution in the US market. The solution is indicated for the temporary relief of itchy eyes due to pollen, ragweed, grass, animal hair and dander. It is also indicated for the temporary relief of red eyes. The Pataday brand had US sales of approximately $31 million since the launch in March 2020 according to IRi.

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