Indices off day's low; Nifty reclaims 16,200

The benchmark indices came of day's low in early afternoon trade. The Nifty regained 16,200 mark. NSE VIX hovered above 13 mark.

At 12:20 IST, the barometer index, the S&P BSE Sensex, dropped 219.20 points or 0.40% at 54,335.46. The Nifty 50 index shed 52.75 points or 0.32% at 16,227.35.

In the broader market, the S&P BSE Mid-Cap index fell 1.26% while the S&P BSE Small-Cap index lost 2%.

The market breadth was weak. On the BSE, 555 shares rose and 2,547 shares fell. A total of 105 shares were unchanged.

Small and mid-cap counters continued to see selling pressure after the BSE on Monday said it was capping the rise in share price of stocks exclusively listed on its platform. BSE said that the move to cap the rise in share price was part of additional surveillance measures. BSE said its new cap on price rise will be in addition to the existing measures and circuit filers. The exchange has spelled out several such caps with regard to stocks that attract circuit filters between 2% and 20%.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 4.40% to 13.265. The Nifty 26 August 2021 futures were trading at 16,214.80, at a discount of 12.55 points as compared with the spot at 16,227.35.

The Nifty option chain for 26 August 2021 expiry showed maximum Call OI of 21.7 lakh contracts at the 16,500 strike price. Maximum Put OI of 46.9 lakh contracts was seen at 15,000 strike price.

Economy:

The Department of Expenditure, Ministry of Finance has released 5th monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore to the States on 9th August, 2021. With the release of this installment, a total amount of Rs 49,355 crore has been released to eligible States as Post Devolution Revenue Deficit Grant (PDRD) in the current financial year.

Politics:

The Lok Sabha on Tuesday passed the Constitution (127th) Amendment Bill to restore the states' power to make their own OBC lists. The bill was passed in Lok Sabha with 385 members voting in support and no opposition to it. The opposition parties decided to "cooperate" with the government in passing the bill and suspend their protest in the House. It was moved by social justice and empowerment minister Virendra Kumar, who termed it as historic legislation that 671 castes in the country would benefit from it.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 20,40,27,000 with 43,14,598 deaths. India reported 3,86,351 active cases of COVID-19 infection and 4,29,179 deaths while 3,12,20,981 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India reported 38,353 new cases in last 24 hours. India has administered 51.90 crore vaccine doses so far under nationwide vaccination drive. India's active caseload currently 3,86,351, which is lowest in 140 days. Active cases constitute 1.21% of total cases, lowest since Mar 2020. Current recovery rate is 97.45%.

Buzzing Index:

The Nifty Auto index fell 1.21% to 10,036.05. The index lost 2.08% in three days.

Tube Investments of India (down 3.12%), Bajaj Auto (down 2.22%), Mahindra & Mahindra ( M&M) (down 1.95%), Balkrishna Industries (down 1.55%) and Bosch (down 1.55%) were the major losers in the Auto segment.

Stocks in Spotlight:

Rattanindia Enterprises advanced 3.95% after the company said that it has decided to make a strategic investment in US based Matternet, the world's most extensive urban drone logistics platform.

Larsen & Toubro (L&T) lost 0.93%. On Wednesday, the company announced the divestment of 100% stake in the 3x33 MW (99 MW) run of the river hydroelectric power plant owned by its subsidiary L&T Uttaranchal Hydropower to Renew Power Services.

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