Indices slide towards day's low; IT stocks correct

The recovery proved short lived as the barometers once again slipped near the day's low in early afternoon trade. At 12:22 IST, the barometer index, the S&P BSE Sensex, was down 65.16 points or 0.18% at 36,609.36. The Nifty 50 index lost 11.85 points or 0.11% at 10,787.80.

Traders booked profits after the Nifty jumped 4.8% in past five trading sessions.

The broader market bucked trend. The S&P BSE Mid-Cap index rose 0.46% while the S&P BSE Small-Cap index gained 0.53%. Both these indices outperformed the Sensex.

The market breadth favored the buyers. On the BSE, 1312 shares rose and 1180 shares fell. A total of 136 shares were unchanged.

COVID-19 Update:

India reported 2,64,944 active cases of COVID-19 infection and 20,642 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 11,829,602 with 544,163 deaths so far, according to data from Johns Hopkins University.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, was up 2.24% to 25.665. The Nifty July 2020 futures were trading at 10,757.10, at a discount of 30.70 points compared with the spot at 10,787.80.

On the weekly index options front, the Nifty option chain for 9 July 2020 expiry showed maximum Call Open Interest (OI) of 45.90 lakh contracts at the 11,000 strike price. Maximum Put OI of 37.48 lakh contracts was seen at 10,000 strike price.

On the monthly index options front, the Nifty option chain for 30 July 2020 expiry showed maximum Call OI of 24.13 lakh contracts at the 11,500 strike price. Maximum Put OI of 32.09 lakh contracts was seen at 10,000 strike price.

Buzzing Index:

The Nifty IT index was down 0.89% to 15,644.90. The index surged 7.1% in the past four sessions.

Among the index constituents, HCL Tech (down 2.17%), Infosys (down 1.62%), Info Edge India (down 1.23%), TCS (down 0.98%), Tech Mahindra (down 0.36%) and Mphasis (down 0.21%) edged lower.

Larsen & Toubro Infotech (up 2.93%), MindTree (up 1.17%), NIIT Technologies (up 1.33%) and Wipro (up 0.04%) edged higher.

Stocks in Spotlight :

Steel Strips Wheels (SSWL) jumped 5.47% to Rs 460. SSWL on Wednesday (8 July) said it received its first order in the segment of alloy wheels from European market. This comes with orders of more than 3100 commercial vehicles (CV) wheels from US and European market, amounting to $140,000.

IndusInd Bank soared 8.07% to Rs 568.65. According to the media reports, US-based hedge fund Route One Investment Company has initiated talks to increase its stake in IndusInd Bank, which is exploring multiple options to strengthen its balance sheet and raise capital.

Route One Investment Company currently holds 5.41% stake in IndusInd Bank through two entities. The plan is to hike it to around 9.9% via a preferential allotment of shares, reports added.

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