Indices off day's low; NSE VIX spurts 6%

Domestic indices came off the day's low in early afternoon trade. The Nifty sharply pared losses after hitting the day's low of 14,579.05 in mid-morning trade. Barring the Nifty Pharma index, all the sectoral indices on the NSE declined.

At 12:20 IST, the barometer index, the S&P BSE Sensex, dropped 578.46 points or 1.16% at 49,472.98. The Nifty 50 index skid 170.15 points or 1.15% at 14,644.60.

In the broader market, the S&P BSE Mid-Cap index fell 0.60% while the S&P BSE Small-Cap index lost 0.47%.

The market breadth was weak. On the BSE, 946 shares rose and 1,770 shares fell. A total of 169 shares were unchanged.

Domestic shares mirrored the weakness in other Asian peers as rising COVID-19 cases drove demand for safe assets, resulting into flight of capital into treasuries and the dollar. Germany, France and Italy have widened virus-related curbs. The head of the World Health Organization called recent increases in deaths and cases "truly worrying trends." Consequently, the crude oil was struggling to hold above the $60 mark after it dropped nearly 6% in the previous session as renewed possibility of lockdowns clouded hopes of recovery in consumption.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 6.09% to 21.925. The Nifty 25 March 2021 futures were trading at 14,631, at a discount of 13.60 points as compared with the spot at 14,644.60.

The Nifty option chain for 25 March 2021 expiry showed maximum Call OI of 59.7 lakh contracts at the 15,000 strike price. Maximum Put OI of 48.3 lakh contracts was seen at 14,000 strike price.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 12,42,00,845 with 27,34,048 deaths. India reported 3,68,457 active cases of COVID-19 infection and 1,60,441 deaths while 1,12,05,160 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India recorded 47,262 new cases of the coronavirus disease in a timespan of 24 hours, according to Union health ministry update on Wednesday. Maharashtra recorded 28,699 new Covid-19 cases and 132 deaths. The five most affected states by total cases are Maharashtra (2,533,026), Kerala (1,105,467), Karnataka (971,647), Andhra Pradesh (894,044), and Tamil Nadu (868,367).

Meanwhile, the government has decided to open up its vaccination drive for all above 45 years of age from 1 April 2021, and requested that all eligible people should immediately register and get vaccinated. The rest of the population could be considered for vaccination coverage once the current stage is over.

Buzzing Index:

The Nifty Pharma index was up 1.07% to 12,034.05. The index has added 4.51% in four sessions.

Cipla (up 1.91%), Aurobindo Pharma (up 1.64%), Sun Pharmaceutical Industries (up 1.22%), Alkem Laboratories (up 1.10%) and Dr Reddy's Laboratories (up 0.91%) jumped.

Stocks in Spotlight:

Bank of Maharashtra rose 1.44% after the bank said it has successfully raised Rs 100 crore through private placement of Basel III compliant Tier II bonds. The bank raised the bonds through allotment of 1,000, 8% Basel III compliant unsecured redeemable taxable subordinate Tier II bonds of face value Rs 10 lakh each. The bonds were allotted on 23 March 2021 and will mature after 10 years, i.e., 23 March 2031.

Rossari Biotech declined 3.19%. The board of the speciality-chemicals maker approved issuing 30,12,046 equity shares of face value of Rs 2 each, on a preferential basis. The board determined a floor price of Rs 996 per equity share or such higher price, aggregating to Rs 300 crore. This preferential issue is subject to necessary approvals, including from the company's shareholders. The board will seek shareholders approval for the same at the extra ordinary general meeting to be held on 17 April 2021.

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