Market pares gains; IT stocks advance

The domestic equity barometers pared gains in early afternoon trade. The Nifty slipped below the 17,700 level. IT stocks witnessed value buying, as they snapped their two-day losing streak.

At 12:25 IST, the barometer index, the S&P BSE Sensex, was up 529.19 points or 0.90% to 59,294.77. The Nifty 50 index added 152.25 points or 0.87% to 17,684.30.

In the broader market, the S&P BSE Mid-Cap index rose 1.12% while the S&P BSE Small-Cap index gained 1.45%.

The market breadth continued to favor the buyers. On the BSE, 2293 shares rose and 910 shares fell. A total of 213 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 1.61% to 16.93. The Nifty 28 October 2021 futures were trading at 17,680, at a discount of 4.3 points as compared with the spot at 17,684.30.

The Nifty option chain for 28 October expiry showed maximum Call OI of 21.9 lakh contracts at the 18,000 strike price. Maximum Put OI of 31.7 lakh contracts was seen at 17,000 strike price.

Buzzing Index:

The Nifty IT index rose 0.73% to 35,035. The index declined 1.42% in the past two sessions.

Infosys (up 0.96%), TCS (up 0.93%), HCL Tech (up 0.88%), Tech Mahindra (up 0.85%), Mphasis (up 0.80%) and MindTree (up 0.60%) were the top index gainers.

Stocks in Spotlight:

Shares of Adani Green Energy rose 1.69% to Rs 1,170.55 in intraday trade after the company announced the completion the acquisition of SB Energy Holdings in an all-cash deal. The transaction pegs SB Energy India at an enterprise valuation of $3.5 billion (approx. Rs. 26,000 cr) and marks the largest acquisition in the renewable energy sector in India.

SB Energy India has 5 Giga Watt renewable assets across four states in India through its SPVs. The acquisition boosts Adani Green Energy's operational portfolio to 5.4 GW and its overall portfolio to 19.8 GW.

NTPC rose 2.79% to Rs 144 on reports the state-run company expects to raise Rs 15000 crore through initial public offerings in three units. The media reported that the state-run generator plans to sell shares in NTPC Renewable Energy (NREL) within a year. A listing of hydropower unit North Eastern Electric Power Corporation (NEEPCO), which it bought last year, and power trading arm, NTPC Vidyut Vyapar Nigam (NVVN), are planned for early 2024, reports added.

Further, NTPC is also looking to sell its stake in NTPC-SAIL Power Co., a joint venture with Steel Authority of India, for supplying electricity to the steel maker's mills and townships, reports suggested.

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