Benchmarks at day's low; Nifty below 12,150

Key indices further extended losses and hit fresh intraday low in early afternoon trade. Market sentiment was affected by weak domestic economic data. The Nifty slipped below 12,150 level. At 12:26 IST, the S&P BSE Sensex, was down 207.02 points or 0.5% at 41,358.88. The Nifty 50 index was down 59.2 points or 0.49% at 12,142.

The broader market traded with a negative bias. The S&P BSE Mid-Cap index was down 0.34% while the S&P BSE Small-Cap index was down 0.1%.

The market breadth was negative. On the BSE, 933 shares rose and 1273 shares fell. A total of 131 shares were unchanged. In Nifty 50 index, 21 stocks advanced while 29 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 1.63% to 13.4. The Nifty February 2020 futures were trading at 12,153.05, a premium of 6.25 points compared with the spot at 12,146.80.

On the options front, the Nifty option chain for 27 February 2020 expiry showed maximum call open interest (OI) of 26.63 lakh contracts at the 12,500 strike price. Maximum Call writing was witnessed at 12,300 strike price, which added 1.87 lakh contracts. Call unwinding was observed at 12,500 strike price which shed 74,400 contracts.

Maximum put OI of 39.09 lakh contracts was seen at 12,000 strike price. Put writing was observed at 11,900 strike which added 77,775 contracts. Massive put unwinding was seen at 12,000 strike price which shed 1.25 lakh contracts.

The option chain indicates that the Nifty will stay between 12,000 and 12,500 level till February expiry.

Stocks in Spotlight:

Aarti Industries disclosed Q3 numbers after market hours yesterday, 12 February 2020. Consolidated net profit rose 4.6% to Rs 139.84 crore in Q3 December 2019 (Q3 FY20) from a net profit of Rs 133.70 crore in Q3 December 2018 (Q3 FY19). Net sales fell 4.5% year-on-year (Y-o-Y) to Rs 1,218.48 crore in Q3 FY20. Profit before tax gained 4.3% to Rs 178.83 crore Y-o-Y. Current tax expenses also soared 27.7% to Rs 31.77 crore during the period under review.

Granules India in an exchange filing during market hours said that US Food & Drug Administration (US FDA) has tentatively approved its Abbreviated New Drug Application (ANDA) for Guaifenesin Extended-Release Tablets. Guaifenesin Extended-Release Tablets are a generic equivalent of Mucinex Extended-Release Tablets. Guaifenesin ER Tablets helps loosen phlegm (mucus) and thin bronchial secretions to rid the bronchial passageways of bothersome mucus and make coughs more productive. Shares of Granules India were trading 1.91% higher at Rs 162.4.

PI Industries declared its Q3 December 2019 result after market hours yesterday. On a consolidated basis, PI Industries reported 12.4% rise in net profit to Rs 121.10 crore on a 20.1% increase in net sales to Rs 849.80 crore in Q3 December 2019 over Q3 December 2018. Profit before tax or PBT in the December quarter stood at Rs 169.80 crore, up by 21.7% from Rs 139.50 crore in Q3 December 2018. EBITDA jumped 24.6% to Rs 186 crore in Q3 FY20 from Rs 149 crore in Q3 FY19. EBITDA margin stood at 21.9% in Q3 FY20 as compared to 21% in the same period last year. Enhanced product mix and moderation in cost of inputs supported the earnings momentum. Shares of PI Industries were trading 0.51% lower at Rs 1550.

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