Market breadth turns negative; telcos spurt

Key equity indices traded near the day's low in early afternoon trade. The Nifty traded below 11,900 level. At 12:25 IST, the barometer index, the S&P BSE Sensex, was down 116.17 points or 0.29% at 40,240.52. The Nifty 50 index was down 21.25 points or 0.18% at 11,874.20.

In the broader market, the S&P BSE Mid-Cap index was up 0.22%. The S&P BSE Small-Cap index was up 0.23%. Both these indices outperformed the Sensex.

The market breadth turned negative from positive. On the BSE, 1084 shares rose and 1207 shares fell. A total of 156 shares were unchanged. In Nifty 50 index, 24 stocks advanced while 26 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 6.48% to 16.005. The Nifty November 2019 futures were trading at 11,904, a premium of 26.8 points compared with the spot at 11,877.20. 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 25.14 lakh contracts at the 12,000 strike price. Maximum put OI of 22.81 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:

The S&P BSE Telecom index rose 3.55% at 998.85. Shares of telecom companies spurted after Finance Minister Niramla Sitharaman assured that the government does not want any telecom companies to shut down on account of Supreme Court's AGR verdict. FM also said that the Government is looking for ways to support the debt laden telecom sector.

FM Nirmala Sitharaman on Friday said, "I want no company to shut operations. I want all companies to flourish & serve their customers".

Vodafone Idea advanced 17.39% to Rs 4.32. Bharti Airtel was up 3.62% at Rs 407.45. Bharti Infratel was trading 1.23% lower at Rs 224.9.

Reliance Communications (RCom) was up 3.39% at Rs 0.61. RCom in a filing on Saturday said that Anil Ambani, Chhaya Virani, Ryna Karani, Manjari Kacker and Suresh Rangachar have tendered their resignation from the office of directors.

Further, Manikantan V also tendered his resignation as director and chief financial officer (CFO) of the company, which is pending for approval before the committee of creditors (COC).

The announcement came a day after RCom reported net loss of Rs 28,909.82 crore in Q2 September 2019, higher than net loss of Rs 285 crore in Q2 September 2018. Net sales tumbled 69.08% to Rs 302 crore in Q2 September 2019 over Q2 September 2018. The result was declared after market hours on Friday, 15 November 2019.

RCom set aside Rs 28,314 crore on account of provisioning after a recent Supreme Court verdict on calculation of annual adjusted gross revenue (AGR) of telecom companies.

Stocks in Spotlight:

Parag Milk Foods jumped 12.43% after the promoter increased stake in the company. Parag Milk Foods in an exchange filing reported that Devendra Shah, promoter of the company has bought 2 lakh equity shares of the company on 15 November 2019. Following the acquisition, the promoter increased his stake in the company to 18.08% from 17.84%.

MOIL rose 1.32% to Rs 141.80 after the company said its board approved buyback of 2.02 crore equity shares, or 7.87% stake, at Rs 152 each. The company has fixed Wednesday, 27 November 2019, as record date for the buyback of shares. The announcements were made after market hours on Friday, 15 November 2019.

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