Indices trade near flat line; VIX dips

Key benchmark indices were hovering in a narrow range in early afternoon trade. The Nifty received support at 11,970 level and traded above that level. At 12:27 IST, the barometer index, the S&P BSE Sensex, was up 54.17 points or 0.13% at 40,523.95. The Nifty 50 index was up 9.9 points or 0.08% at 11,975.95. Investors and traders remained cautious ahead of weekly expiry of index options today.

In the broader market, the S&P BSE Mid-Cap index was up 0.6%. The S&P BSE Small-Cap index was up 0.46%.

The market breadth was positive. On the BSE, 1203 shares rose and 981 shares fell. A total of 180 shares were unchanged. In Nifty 50 index, the market breadth was weak. 19 stocks advanced and 31 stocks declined in Nifty.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 0.8% to 15.6475. A fall in VIX indicates stability in the benchmark index. The Nifty November 2019 futures were trading at 12,002.05, a premium of 21.75 points compared with the spot at 11,980.30. The November 2019 F&O contracts expire on 28 November 2019.

On the options front, the Nifty option chain for 28 November 2019 expiry showed maximum call open interest (OI) of 18.91 lakh contracts at the 12,000 strike price. Maximum put OI of 19.10 lakh contracts was seen at 11,600 strike price. The option chain indicates that Nifty will stay between 11,600 and 12,000 in November expiry.

Buzzing index:

Auto stocks witnessed selling pressure. The Nifty Auto index was down 0.84% at 8,189.35.

Tata Motors (down 2.72%), SML Isuzu (down 1.69%), Eicher Motors (down1.69%), TVS Motors Company (down 1.64%), Hero MotoCorp (down 0.94%), Ashok Leyland (down 0.65%), Bajaj Auto (down 0.64%), Maruti Suzuki India (down 0.57%) and Mahindra and Mahindra (down 0.48%) declined.

Stocks in spotlight:

Auto parts maker Bosch fell 3.21% to Rs 14,750 after the company announced its Q2 2019 earnings after market hours yesterday. The company's consolidated net profit slumped 45.58% to Rs 228.61 crore on 26.92% decline in net sales to Rs 2,312.68 crore in Q2 September 2019 over Q2 September 2018.

Bombay Stock Exchange (BSE) was down 0.28% at Rs 535.45. The exchange announced weak Q2 numbers after market hours yesterday. The company's net profit declined 22% to Rs 36 crore in Q2 September 2019 over Rs 46 crore in Q2 September 2018. Revenue from operations were down 5% to Rs 109 crore on YoY basis.

Prakash Industries rose 4.39% to Rs 53.50 after the company announced on Wednesday that it emerged as highest bidder for Bhaskarpara coal mine in Chhattisgarh. Prakash Industries participated in the 8th tranche of coal blocks auction, conducted by Ministry of Coal and has emerged as the highest bidder for the Bhaskarpara coal mine in Chhattisgarh. The mine has an extractable reserve of 24.06 million tonnes and its coal is highly suitable for use in our integrated steel plant at Champa (Chhattisgarh). Presently the company is buying coal through the linkages allotted by Coal India and also through imports. It is expected that the vesting order for the mine by the Nominated Authority of Ministry of Coal may be issued to the company in the due course of time. Availability of coal from the Bhaskarpara Coal Mine will substantially enhance the operating margins of the company.

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