Benchmarks trade with major gains; VIX drops over 7%

The key equity indices continued to trade in a narrow range with strong gains in the early afternoon trade. The Nifty traded above the 17,200 mark. Positive global cues boosted the sentiments.

At 12:28 IST, the barometer index, the S&P BSE Sensex, surged 1161.57 points or 2.05% to 57,950.38. The Nifty 50 index added 356.05 points or 2.11% to 17,243.40.

In the broader market, the S&P BSE Mid-Cap index rose 2% while the S&P BSE Small-Cap index gained 1.43%.

The market breadth was strong. On the BSE, 2,565 shares rose and 756 shares fell. A total of 136 shares were unchanged.

Investors cheered after witnessing a declining trend in the dollar and US bond yields. The persistence of this trend could lead to a return of FIIs in a big way in the Indian markets. In September, FIIs sold shares worth Rs 18,308.30 in the cash market while DIIs purchased stocks worth Rs 14,119.75 crore during the period under review.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 7.46% to 19.77. The Nifty 27 October 2022 futures were trading at 17,243.40, at a discount of 25 points as compared with the spot at 17,268.40.

The Nifty option chain for the 27 October 2022 expiry showed maximum Call OI of 84.9 lakh contracts at the 17,500 strike price. Maximum Put OI of 99.5 lakh contracts were seen at 17,200 strike price.

Buzzing Index:

The Nifty Financial Services index rose 2.28% to 17,663.20. The index declined 1.35% in the past trading session.

Among the components of the Nifty Financial Services index, Cholamandalam Investment & Finance Company (up 5.78%), HDFC Asset Management Company (up 3.92%), Bajaj Finance (up 3.69%), ICICI Prudential Life Insurance Company (up 3.26%) and Bajaj Finserv (up 2.85%) were the top gainers.

Among the other gainers were Housing Development Finance Corporation (up 2.84%), Axis Bank (up 2.57%), HDFC Bank (up 2.55%), State Bank of India (up 2.45%) and HDFC Life Insurance Company (up 2.44%).

Stocks in Spotlight:

Angel One rallied 6.96% after the brokerage company said its client base jumped 77.4% to 11.57 million in September 2022 as against 6.52 millions in September 2021. On a sequential basis, the company's client base rose by 3.4% month on month (MoM) from 11.18 million clients in August 2022.

Hindustan Zinc rose 1%. The zinc miner said its mined metal production rose 3% to 255,000 tonnes in Q2 FY23 as against 248,000 tonnes in Q2 FY22. The miner reported highest-ever second quarter mined metal production driven by better grades and improved mill recoveries. Sequential growth of 1% was largely on account of better grades.

Dr Reddy's Labs fell 0.21% while LIC rose 1.30%. The state-run insurance major on Monday (3 October 2022) announced that it acquired 2.03% stake in the drug major. Life Insurance Corporation of India (LIC)'s shareholding in Dr Reddy's Laboratories has Increased from 93,96,801 to 1,27,83,287 equity shares, increasing its shareholding from 5.645% to 7.679%.

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