Market trades firm; FMCG shares correct

Benchmarks firmed up once again in afternoon trade. FMCG shares witnessed profit booking. At 12:23 IST, the barometer index, the S&P BSE Sensex, gained 325.44 points or 0.93% at 35,167.54. The Nifty 50 index added 93 points or 0.9% at 10,381.90.

The central board of the Reserve Bank of India (RBI) is holding its first meeting since the outbreak of the COVID-19 pandemic today. The board is expected to discuss the state of the economy, and the banking sector in particular.

In the broader market, the S&P BSE Mid-Cap index rose 0.8% while the S&P BSE Small-Cap index gained 0.63%.

The market breadth was strong. On the BSE, 1652 shares rose and 807 shares fell. A total of 143 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 0.88% to 29.46. The Nifty July 2020 futures were trading at 10,295, at a discount of 75.2 points compared with the spot at 10,370.20.

On the options front, the Nifty option chain for 30 July 2020 expiry showed maximum call open interest (OI) of 18.56 lakh contracts at the 11,500 strike price. Maximum put OI of 20.98 lakh contracts was seen at 9,000 strike price.

Buzzing Segments:

The Nifty FMCG declined 0.62% to 29,926.85, ending its six days winning streak. The index rose nearly 6% in the past six days.

Varun Beverages (down 2.63%), United Breweries (down 2.35%), ITC (down 1.36%), HUL (down 0.98%), Nestle India (down 0.54%), Jubilant Foodworks (down 0.5%) and Dabur India (down 0.49%) declined.

Stocks in Spotlight:

Sterling and Wilson Solar was locked in an upper circuit of 5% at Rs 199.25 after it announced that its US based subsidiary Sterling and Wilson Solar Solutions Inc has won its largest solar project order in USA which is worth $99 million (approx. Rs 747 crore).

Camlin Fine Sciences hit an upper circuit of 10% at Rs 53.35 after the company re‐commenced trial production at its manufacturing unit located at Dahej on Thursday, 25 June 2020. The chemical maker had informed on 4 June 2020 about the temporary shut‐down of the said unit after it was severely affected due to massive explosion in the adjoining unit belonging to Yashashvi Rasayan.

Vedanta rose 0.63% to Rs 112 after the firm said it has received shareholders' nod for delisting the company. Vedanta in a regulatory filing on Thursday announced that the special resolution (for voluntary delisting of the equity shares of the company from BSE and NSE has been approved by the members with requisite majority. While 93.34% of the votes were in favour of the proposal, 6.65% were against it, the filing said. The proposal required approval of at least 66.7% of minority shareholders.

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