Benchmarks at the high point of the day; India VIX drops over 8%

The domestic equity barometers were currently at the day's high in afternoon trade. The Nifty traded above the 17,300 mark. Auto shares extended gains for fourth consecutive session.

At 12:25 IST, the barometer index, the S&P BSE Sensex, was up 1115.98 points or 1.96% to 57,932.63. The Nifty 50 index rallied 331.30 points or 1.95% to 17,306.65.

In the broader market, the S&P BSE Mid-Cap index jumped 1.23% while the S&P BSE Small-Cap index rallied 1.17%.

Buyers outnumbered sellers. On the BSE, 2,249 shares rose and 1,018 shares fell. A total of 124 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slumped 8.13% to 22.16. The Nifty 31 March 2022 futures were trading at 17,334.20, at a premium of 27.55 points as compared with the spot at 17,306.65.

The Nifty option chain for 31 March 2022 expiry showed maximum Call OI of 24.6 lakh contracts at 18,000 strike price. Maximum Put OI of 46.5 lakh contracts were seen at 16,000 strike price.

Buzzing Index:

The Nifty Auto index rose 2.01% to 10,558.20, extending gains for fourth day in a row. The index has added 5.80% in four sessions.

Eicher Motors (up 3.66%), Maruti Suzuki (up 2.33%), Bajaj Auto (up 1.89%), Bharat Forge (up 1.84%), Tata Motors (up 1.69%), Mahindra & Mahindra (up 1.60%), Hero MotoCorp (up 1.38%) and TVS Motor Company (up 0.98%) advanced.

Brokerage Downgrade:

A foreign brokerage has downgraded India to 'underweight' from 'neutral', saying GDP growth may disappoint, adding to the downside risks to EPS estimates. High inflation is hurting both households and businesses, the brokerage said as it noted that the MSCI India is trading at a 98% premium to the broader emerging market index. The brokerage said it retains its positive view on India's defensive pocket as a shelter for volatile times. Domestic monetary tightening cycle is key to watch, it said.

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