Barometers turn range bound; Nifty hovers near 18,600

The key equity indices traded in a narrow range with modest losses in early afternoon trade. The Nifty hovered near the 18,600 mark. Pharma shares declined for fourth day in a row.

At 12:28 IST, the barometer index, the S&P BSE Sensex, was down 290.22 points or 0.46% to 62,544.38. The Nifty 50 index lost 84.70 points or 0.45% to 18,616.35.

In the broader market, the S&P BSE Mid-Cap index slipped 0.43% while the S&P BSE Small-Cap index declined 0.22%.

The market breadth was negative. On the BSE, 1,588 shares rose, and 1,766 shares fell. A total of 165 shares were unchanged.

The Reserve Bank of India (RBI) started its bi-monthly policy review with the Monetary Policy Committee (MPC) meeting yesterday. The bi-monthly policy review is expected to come out on 7 December 2022. More than the quantum of rate hikes, domestic investors would watch out for RBI's commentary as it ramps up its efforts to curb inflation and push growth.

On the political front, various exit polls on Monday predicted a big majority for the BJP in Gujarat and a dead heat in Himachal Pradesh where most pollsters gave an edge to the ruling party over the Congress. The counting of votes in both states will take place on December 8. Elections for the Himachal Pradesh assembly took place on November 12, while polling in Gujarat happened in two phases on December 1 and 5.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 2.25% to 14.04. The Nifty 29 December 2022 futures were trading at 18,732, at a premium of 115.65 points as compared with the spot at 18,616.35.

The Nifty option chain for the 29 December 2022 expiry showed maximum Call OI of 35 lakh contracts at the 19,000 strike price. Maximum Put OI of 31.8 lakh contracts were seen at 18,000 strike price.

Buzzing Index:

The Nifty Pharma index fell 0.97% to 12,926.55. The index declined 1.66% in past four trading sessions.

Glenmark Pharmaceuticals (down 2.48%), Biocon (down 1.81%), Dr Reddys Laboratories (down 1.54%), Granules India (down 1.48%), Sun Pharmaceuticals Industries (down 1.37%), Ipca Laboratories (down 1.16%), Glaxosmithkline Pharmaceuticals (down 1.07%), Cipla (down 1%), Zydus Lifesciences (down 0.88%) and Torrent Pharmaceuticals (down 0.86%) declined.

On the other hand, Natco Pharma (up 0.87%), Sanofi India (up 0.32%) and Abbott India (up 0.31%) advanced.

Stocks in Spotlight:

Ratnamani Metals & Tubes rose 0.16% after the iron & steel producer said that it has recently received new orders aggregating to Rs 262.52 crore. The company has bagged domestic orders aggregating to Rs 233.26 crore. It has also secured export orders aggregating to Rs 29.26 crore.

Gravita India jumped 2.08% after the company said its step down subsidiary, Gravita Togo SAU, has started aluminium recycling plant in West Africa. Gravita Togo SAU has started commercial production of aluminium cast-alloys from a new recycling plant having an annual capacity of around 4,000 MTPA in phase I.

Force Motors advanced 0.68% after the company registered 110.2% jump in domestic sales to 1,623 units in November 2022 from 772 units sold in November 2021. As compared with October 2022, the domestic sales declined 22.3% last month.

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