Benchmarks turn rangebound; IT shares advance

The domestic equity benchmarks turned rangebound and traded in a narrow range in early afternoon trade. The Nifty hovered near the 17,650 mark. IT shares snapped their four-day losing streak amid some bit of value buying.

At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 388.54 points or 0.66% to 59,229.33. The Nifty 50 index added 118.20 points or 0.67% to 17,649.05.

In the broader market, the S&P BSE Mid-Cap index shed 0.29% while the S&P BSE Small-Cap index rose 0.18%

The market breadth was positive. On the BSE, 1,757 shares rose and 1,739 shares fell. A total of 138 shares were unchanged.

Investors prepared for an important week, lined up with 13 central bank meetings, with expectations of interest rates rising globally and an ultra-hawkish monetary tightening by the US Fed's meeting on Wednesday, followed by the Bank of Japan and Bank of England on the next day.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, was up 0.89% to 20. The Nifty 29 September 2022 futures were trading at 17,656.10, at a premium of 7.05 points as compared with the spot at 17,649.05.

The Nifty option chain for the 29 September 2022 expiry showed maximum Call OI of 29.4 lakh contracts at the 18,000 strike price. Maximum Put OI of 34.8 lakh contracts were seen at 16,500 strike price.

Buzzing Index:

The Nifty IT index advanced 0.55% to 26,853.85. The index had declined 8.32% in the past four sessions.

Tech Mahindra (up 1.33%), Infosys (up 0.82%), Mphasis (up 0.6%), Tata Consultancy Services (up 0.53%), HCL Technologies (up 0.48%) and Wipro (up 0.39%) advanced.

Meanwhile, L&T Technology Services (down 2.61%), Larsen & Toubro Infotech (down 1.01%) and Mindtree (down 0.5%) edged lower.

Stocks in Spotlight:

HDFC Life Insurance Company advanced 0.38%. The life insurer said that the Mumbai Bench of the National Company Law Tribunal has sanctioned the scheme of amalgamation between Exide Life and HDFC Life.

PSP Projects fell 1.48%. The civil construction company on Monday (19 September 2022) announced that it has been awarded with work orders worth Rs 167.35 crore in industrial, precast and residential segments.

Indoco Remedies added 0.18%. The drug maker said that the company's CRO AnaCipher was inspected by the United States Food and Drug Administration (US FDA) from 12 September to 16 September 2022. The clinical phase of inspection covered three BA/BE studies submitted by clients to the US FDA and was successfully concluded with zero 483 observations.

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