Indices trade sideways; Axiscades Engineering soars 20%

Key barometers firmed up once again in early afternoon trade. The Nifty traded near 12,150 level. Gains were capped amid negative cues from other Asian stock markets.

At 12:19 IST, the S&P BSE Sensex, was up 156.96 points or 0.38% at 41,272.34. The Nifty 50 index was up 40.1 points or 0.33% at 12,147.

The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index surged 0.93% while the S&P BSE Small-Cap index was up 0.62%.

The market breadth was positive. On the BSE, 1222 shares rose and 947 shares fell. A total of 130 shares were unchanged. In Nifty 50 index, 33 stocks advanced while 17 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 0.3% to 16.31. The Nifty January 2020 futures were trading at 12,157, a premium of 26.70 points compared with the spot at 12,130.30.

On the options front, the Nifty option chain for 30 January 2020 expiry showed maximum call open interest (OI) of 35.42 lakh contracts at the 12,500 strike price. Maximum call writing was witnessed at 12,200 strike price, which added 4 lakh contracts.

Maximum put OI of 39.14 lakh contracts was seen at 12,000 strike price. Maximum put writing was observed at 12,000 strike which added 3.62 lakh contracts.

The option chain indicates that the Nifty will hover between 12,000 and 12,500 level in January.

Stocks in Spotlight:

Axiscades Engineering Technologies hit an upper-circuit limit of 20% at Rs 75.15 crore after reporting a net profit of Rs 8.03 crore in Q3 December 2019 compared with net loss of Rs 73 lakh in Q3 December 2018. Consolidated net sales rose 4.9% to Rs 167.23 crore in Q3 December 2019 over Q3 December 2018. Profit before tax soared 804.4% to Rs 12.39 crore in Q3 December 2019 as compared to Rs 1.37 crore in Q3 December 2018. The Q3 results were declared after trading hours yesterday, 22 January 2020.

Karnataka Bank advanced 1.84%. The bank has informed that a meeting of board of directors will be held on 27 January 2020, to consider various options for capital augmentation.

Ceat rose 1.15% to Rs 1011 after the company's net sales recorded 1.9% rise to Rs 1761.77 crore in Q3 December 2019 despite the ongoing slowdown in the automobile sector. Net sales in Q3 December 2018 stood at Rs 1729.75 crore. The company's interest payments rose significantly by 71.3% to Rs 38 crore in Q3 December 2019 over Q3 December 2018. Consequently, profit before tax rose by a mere 0.2% to Rs 82.64 crore while the net profit stood slightly higher at Rs 52.95 crore, up by 0.3% in Q3 December 2019 over Q3 December 2018.

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