Market pares gains; breadth positive

Indices came off day's high and traded with marginal gains in early afternoon trade. The Nifty was trading above its crucial 11,900 mark. Metal shares were in demand. At 12:33 IST, the barometer index, the S&P BSE Sensex, was up 35.13 points or 0.09% at 40,200.16. The Nifty 50 index was up 22.2 points or 0.19% at 11,912.80.

The S&P BSE Mid-Cap index was up 0.06%. The S&P BSE Small-Cap index was up 0.38%.

The market breadth was positive. On the BSE, 1343 shares rose and 988 shares fell. A total of 165 shares were unchanged. In Nifty 50 index, 30 stocks advanced and 20 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.52% to 16.13. A rise in volatility index indicates instability in benchmark index. The Nifty November 2019 futures were trading at 11,944, a premium of 15.1 points compared with the spot at 11,928.90. 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 19.55 lakh contracts at the 12,000 strike price. Maximum put OI of 19.48 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 sector:

The Nifty Metal index was up 2.96% at 2,637.70, extending gains for second trading session.

Tata Steel (up 4.33%), Jindal Steel & Power (up 3.65%), Hindustan Zinc (up 3.38%), Vedanta (up 3.34%), Steel Authority of India (up 2.95%), National Aluminium Company (up 2.51%), Hindalco Industries (up 2.4%) and NMDC (up 0.82%) advanced.

Stocks in spotlight:

Varun Beverages was up 0.82% after the company announced its Q2 result today. On consolidated basis, the company's net profit jumped 83.71% to Rs 81.1 crore on a 49.2% rise in net sales to Rs 1739.7 crore in Q3 September 2019 over Q3 September 2018. The company's EBITDA also jumped 54.2% to Rs 325.7 crore on YoY basis.

Relaxo Footwear rose 2.79% at Rs 558.35 after the company announced its Q2 earnings on Saturday. On standalone basis, the company's net profit jumped 78.8% to 70.54 crore on a 14.5% increase in net sales to Rs 621.77 crore in Q2 September 2019 as compared to Q2 September 2018. The company's PAT margin improved to 11.3% in Q2 2019 from 7.3% in Q2 2018. The revenue growth was driven mainly by premiumization, product mix and price increase in selected categories. EBITDA jumped 42% to Rs 105 crore in Q2 September 2019 as against 74 crore in Q2 September 2018. The EBITDA margin improved to 16.8% in Q2 2019 from 13.5% in Q2 2018.

JSW Energy jumped 8.26% to Rs 76, extending recent gains on strong buying support. Shares of JSW Energy rallied 14.11% in five trading sessions to its current market price of Rs 76 from a recent closing low of Rs 66.60 on 27 October 2019.

JSW Energy announced Q2 results during trading hours on Friday, 1 November 2019. Consolidated net profit rose 11.7% to Rs 352.98 crore on 12.8% decline in net sales to Rs 2,118.55 crore in Q2 September 2019 over Q2 September 2018. Consolidated EBITDA climbed 5% to Rs 1,048 crore in Q2 September 2019 compared with Rs 998 crore in Q2 September 2018.

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