Benchmarks turn range bound; NSE VIX jumps to 22.56

The domestic equity barometers were trading in a narrow range with steep losses in early afternoon trade. Auto stocks declined across the board. A spike in domestic coronavirus cases and localized lockdown being announced by various state governments dented investors sentiment.

At 12:20 IST, the barometer index, the S&P BSE Sensex, was down 1141.84 points or 2.34% to 47,690.19. The Nifty 50 index lost 340.70 points or 2.33% to 14,277.20.

In the broader market, the S&P BSE Mid-Cap index fell 2.20% while the S&P BSE Small-Cap index slipped 1.89%.

The market breadth was weak. On the BSE, 594 shares rose and 2196 shares fell. A total of 169 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, surged 10.57% to 22.56. The Nifty 29 April 2021 futures were trading at 14,292, at a premium of 14.8 points as compared with the spot at 14,277.20.

The Nifty option chain for 29 April 2021 expiry showed maximum Call OI of 26.6 lakh contracts at the 15,000 strike price. Maximum Put OI of 36 lakh contracts was seen at 14,000 strike price.

Buzzing Index:

The Nifty Auto index dropped 3% to 9,515.15. The index had gained 1.21% to end at 9,808.95 on Friday.

Bharat Forge (down 5.19%), Bajaj Auto (down 4.14%), Ashok Leyland (down 3.70%), TVS Motor Company (down 3.66%), Hero MotoCorp (down 3.50%), Eicher Motors (down 3.29%), Maruti Suzuki (down 2.98%), Tata Motors (down 2.76%) and Mahindra & Mahindra (down 2.57%) declined.

Stocks in Spotlight:

Kolte-Patil Developers dropped 5.76% to Rs 221.85. The company's volume jumped 27.1% to 0.85 million square feet (sq. ft.) in Q4 FY21 over 0.67 million sq. ft. in Q4 FY20. Strong sales momentum sustained in Q4 FY21 across regions, projects and product categories.

Sale value surged 42.7% to Rs 510.90 crore in Q4 FY21 as against Rs 358.10 crore in Q4 FY20. Sales realization soared 12.3% to Rs 5,988 per sq. ft. in Q4 FY21 from Rs 5,333 per sq. ft. in Q4 FY20. Collections spurted 16.8% to Rs 441.50 crore in Q4 FY21 as compared to Rs 378.10 crore in Q4 FY20.

There has been a further reduction in net debt during Q4 FY21. Hence, strong collections and low debt have resulted in healthy OCF in FY21, despite being a year impacted by COVID-related disruptions. The company signed three new projects with a combined saleable area of 2.2 msf in Pune under capital light models.

KEC International added 0.80% to Rs 419.60. The company has signed project/ novation agreements with Warora-Kurnool Transmission (WKTL) for Rs. 477 crore to complete the balance work of the Transmission lines in the states of Andhra Pradesh, Maharashtra and Telangana and release of the earlier dues of this project. WKTL is a subsidiary of Adani Transmission (ATL).

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