Broader market corrects; VIX spurts 7% to cross 15 mark

Benchmark indices sharply pared gains amid bout of volatility in early afternoon trade. The Nifty recovered after briefly slipping below the 17,600 mark. IT and financial stocks bucked wider selling pressure.

At 12:31 IST, the barometer index, the S&P BSE Sensex, was up 151.21 points or 0.26% at 59,292.84. The Nifty 50 index was up 12.45 points or 0.07% at 17,641.85.

The Sensex hit record high of 59,737.32 while the Nifty hit an all-time high of 17,792.95 in morning trade.

The broader market tumbled. The S&P BSE Mid-Cap index tumbled 1.39% while the S&P BSE Small-Cap index declined 1.71%.

The market breadth was weak. On the BSE, 1138 shares rose and 1959 shares fell. A total of 145 shares were unchanged.

All eyes are on the GST Council meeting today, 17 September 2021 in Lucknow. The agenda for the GST Council meet includes considering taxing petrol, diesel and other petroleum products under the single national GST regime.

Broader Market Losers:

IDFC First Bank (down 5%), Bank of Baroda (down 4.83%), Indiabulls Housing Finance (down 4%), Vodafone Idea (down 4%) and Canara Bank (down 3.78%) were top losers in Mid Cap space.

Can Fin Homes (down 3.86%), Indian Bank (down 3.66%), National Aluminium Company (down 3.48%), Birlasoft (down 3.25%) and Ceat (down 3.16%) were top losers in Small Cap space.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 7.04% to 15.4275. The Nifty 30 September 2021 futures were trading at 17,707, at a premium of 7 points as compared with the spot at 17,700.

The Nifty option chain for 30 September 2021 expiry showed maximum Call OI of 14.7 lakh contracts at the 18,000 strike price. Maximum Put OI of 35.5 lakh contracts was seen at 17,000 strike price.

Stocks in Spotlight:

KEI Industries jumped 4.91% to Rs 877.45 after the credit ratings agency ICRA upgraded its rating on the long-term and short-term bank facilities / debt instruments of the company. ICRA upgraded the company's long-term rating to '[ICRA] AA-' from '[ICRA] A+', the short-term rating to '[ICRA] A1+' from '[ICRA] A1' and the medium-term rating (the fixed deposit rating) to '[ICRA] MAA-' from '[ICRA] MA+'.

Cosmo Films rose 2.95% to Rs 1535.95 after the company's board approved setting up of new production line for biaxially oriented poly propylene (BOPP) film at Aurangabad, Maharashtra with rated capacity of 67,000 MT annually. The new BOPP line will require an investment of Rs 350 crore and this funding will be met via internal accrual, debts. The line is expected to commence production by FY2024-25.

Powered by Capital Market - Live News