Barometers trade near day's low; VIX jumps 8%

The benchmark indices continued to trade near the day's low in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, fell 257.48 points or 0.58% at 44,265.54. The Nifty 50 index lost 72.05 points or 0.55% at 12,983.10.

The Sensex hit a record high of 44,825.37 while Nifty scaled fresh high of 13,145.85 in early deal today.

In the broader market, the S&P BSE Mid-Cap index slipped 1.08% while the S&P BSE Small-Cap index fell 0.80%.

The market breadth was negative. On the BSE, 1,065 shares rose and 1,521 shares fell. A total of 158 shares were unchanged.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 5,97,59,494 with 14,09,301 deaths. India reported 4,44,746 active cases of COVID-19 infection and 1,34,699 deaths while 86,42,771 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, surged 8.45% to 22.8375. The Nifty November 2020 futures were trading at 13,012, at a premium of 17.20 points compared with the spot at 12,994.80.

The Nifty option chain for 26 November 2020 expiry showed maximum Call OI of 47.22 lakh contracts at the 13,000 strike price. Maximum Put OI of 48.87 lakh contracts was seen at 13,000 strike price.

Buzzing Index:

The Nifty Pharma index fell 1.06% to 11,754.50. The index added 3.07% in the past two sessions.

Biocon (down 2.50%), Aurobindo Pharma (down 2.42%), Sun Pharmaceutical Industries (down 1.74%), Divis' Laboratories (down 1.27%) and Cipla (down 1.16%) were the top losers in Pharma segment.

Stocks in Spotlight:

JSW Steel rose 0.31%. The steel major will acquire 1.32 crore equity shares, or 26.45% paid up equity, of JSW Vallabh Tinplate (JSW VTPL) from the existing third-party shareholders in one or more tranches for Rs 35 crore. On closing of the transaction, JSW VTPL will become a wholly-owned subsidiary of JSW Steel. The deal is expected to be completed by 31 March 2021.

Glenmark Pharmaceuticals fell 0.88%. S&P Global Rating has a stable outlook on Glenmark Pharma's rating and also removed it from 'CreditWatch'. S&P said refinancing risks for Glenmark Pharma have subsided with the company raising $182.5 million in November 2020 via a term loan to redeem a similar amount of its $200 million senior unsecured notes due 2 August 2021.

The company's stable operating cash flows and limited capital spending requirements over the next two years will support its deleveraging. S&P said it is affirming its long-term issuer credit rating on Glenmark and the issue rating on the company's $200 million senior unsecured notes at 'BB-'. At the same time, it is removing all the ratings from CreditWatch, where we had placed them with negative implications on 29 July 2020.

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