Benchmarks trade in range; VIX shoots nearly 7%

Key barometers traded sideways with modest gains in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 101.58 points or 0.25% at 40,546.73. The Nifty 50 index was up 26.2 points or 0.22% at 11,947.70.

Gains were capped as IHS Markit expects India's real GDP growth in 2019-20 fiscal to be slightly below 5%. Sentiment was also fragile as the Reserve Bank of India (RBI) unexpectedly left interest rates unchanged on Thursday. The move was driven by the rising inflationary pressure and gradual improvement in monetary transmission.

In the broader market, the S&P BSE Mid-Cap index was up 0.58% and the S&P BSE Small-Cap index was down 0.08%.

The market breadth was negative. On BSE, 1054 shares advanced while 1087 shares declined. A total of 180 shares were unchanged. In Nifty 50 index, 35 stocks advanced and 15 stocks declined.

Economy:

India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5% as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said. Financial sector fragilities continue to weigh on India's economic growth momentum, with the high level of non-performing loans on the balance sheets of the public sector banks, constraining their new lending, IHS said in a report.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, spurted 6.54% to 14.5325. The Nifty December 2019 futures were trading at 11,986, a premium of 29.95 points compared with the spot at 11,956.05.

On the options front, the Nifty option chain for 26 December 2019 expiry showed maximum call open interest (OI) of 22.70 lakh contracts at the 12,000 strike price. Maximum put OI of 32.81 lakh contracts was seen at 12,000 strike price.

Buzzing Index:

The Nifty Pharma index was up 0.89% at 8,028.50, snapping its two days losing streak. The index lost 2% in two trading sessions.

Glenmark Pharmaceuticals (up 1.55%), Piramal Enterprises (up 1.82%) Divi's Laboratories (up 1.81%), Dr Reddy's Laboratories (up 1.56%), IPCA Laboratories (up 1.14%), Sun Pharmaceuticals (up 0.93%), Aurobindo Pharma (up 0.57%) and Cadila Healthcare (up 0.69%) were top gainer in pharmaceutical segment.

Sun Pharma Advanced Research Company (SPARC) advanced 3.51% to Rs 159.10 after Abraxis Bioscience dismissed patent infringement complaint filed against the company. Sun Pharma Advanced Research Company (SPARC) announced that Abraxis Bioscience LLC. has dismissed the patent infringement complaint filed against SPARC regarding SPARC's new drug application for PICS (Paclitaxel injection concentrate for suspension). "We are very pleased that Abraxis Bioscience LLC. has withdrawn its infringement claims paving the way for a successful launch as and when we receive necessary regulatory approvals," said Anil Raghavan, CEO of SPARC. SPARC also stated that it will inform the US Food and Drug Administration (USFDA) of the dismissal of the complaint to vacate the 30-month stay. The announcement was made during market hours today, 9 December 2019.

Stocks in Spotlight:

Yes Bank jumped 3.04% to Rs 57.70 ahead of the bank's board meeting to decide on the details of preferential allotment of shares. On 29 November 2019, the bank said that various investors have expressed willingness to subscribe to equity shares of the bank. Among the institutional investors, a top-tier US Fund House, Discovery Capital and Ward Ferry expressed interest in acquiring fresh stake in the bank. Aditya Birla Family Office, Citax Holdings Ltd & Citax Investment Group, GMR Group and Associates, Erwin Singh Braich I SPGP Holdings and Rekha Jhunjhunwala are the five family offices that have expressed interest in subscribing to the equity of the bank.

Shaily Engineering Plastics tumbled 8.88% to Rs 579 after the Goods and Service Tax (GST) authorities carried out search proceedings at the company's Rania unit in Gujarat. The company stated that the authorities have seized some moulds belonging to the company as well its customers as part of the process which is being contested. There has not been any case of evasion of any duty which has been established as of now and the company has not received any show cause notice from the authorities till date. The company further said that investigation and submission by the company is continuing and assured that GST raid will have no impact on routine operations

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