Market at day's high; Nifty above 17,000; VIX slides over 6%

The key equity indices marched to the day's high and traded with strong gains in the early afternoon trade. The Nifty scaled above the 17,000 mark after hitting the day's low of 16,747.70 in the early trade. PSU Bank stocks advance for the second day in a row. The Reserve Bank of India (RBI) increased the repo rate by 50 basis points to 5.9% with immediate effect.

At 12:28 IST, the barometer index, the S&P BSE Sensex, surged 703.8 points or 1.25% at 57,113.76. The Nifty 50 index gained 209.85 points or 1.25% at 17,027.95.

In the broader market, the S&P BSE Mid-Cap index rose 0.52% while the S&P BSE Small-Cap index added 0.74%.

The market breadth was positive. On the BSE, 2,032 shares rose and 1,212 shares fell. A total of 137 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, was slipped 6.05% to 20.0125. The Nifty 27 October 2022 futures were trading at 17,044.95, at a premium of 17 points as compared with the spot at 17,027.95.

The Nifty option chain for the 27 October 2022 expiry showed maximum Call OI of 49.3 lakh contracts at the 17,000 strike price. Maximum Put OI of 56 lakh contracts were seen at 16,800 strike price.

Buzzing Index:

The Nifty PSU Bank index rose 2.67% to 2,985.10, extending its gaining streak to the second day. The index advanced 3.86% in two trading sessions.

Among the components of the Nifty PSU Bank index, Canara Bank (up 4.71%), Bank of Baroda (up 3.81%), Punjab National Bank (up 3.72%), Union Bank of India (up 2.06%) and Central Bank of India (up 2.03%) were the top gainers.

Among the other gainers were Bank of Maharashtra (up 1.72%), State Bank of India (up 1.58%), Indian Overseas Bank (up 1.45%), UCO Bank (up 1.28%) and Bank of India (up 1.24%).

Stocks in Spotlight:

Motherson Sumi Wiring India declined 1.21%. The board of Motherson Sumi Wiring India on Friday (30 September) recommended issuing 2 bonus equity shares against 5 existing equity shares. The bonus issue recommendation is subject to the approval of the shareholders.

Nestle India rose 0.43%. The FMCG major on Friday (30 September 2022) said that David Steven McDaniel, executive director - finance & control and chief financial officer (CFO), shall demit office effective from 1 March 2023. McDaniel will be taking up a new assignment with a NestlAffiliate, the company stated.

Zydus Lifesciences advanced 0.52% after the company on announced that Zydus Animal Health and Investments, a wholly owned subsidiary of the firm received two observations after the pre-approval inspection by USFDA at its Ahmedabad manufacturing facility.

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