Market turns rangebound; PSU OMCs advance

Key benchmark indices were trading in a narrow range with small losses in early afternoon trade. The Nifty traded tad below the 11,350 level. At 12:24 IST, the barometer index, the S&P BSE Sensex, was down 53.20 points or 0.14% at 38,252.21. The Nifty 50 index was down 13.25 points or 0.12% at 11,346.65.

The S&P BSE Mid-Cap index was up 0.11%. The S&P BSE Small-Cap index was down 0.12%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 951 shares rose and 1169 shares fell. A total of 134 shares were unchanged. In the Nifty 50 index, 24 stocks advanced, 26 stocks declined.

The initial public offer (IPO) of Indian Railway Catering and Tourism Corporation (IRCTC) was subscribed 4.68 times on the last day of bidding. As of 11:30 IST, the issue received bids for 9.42 crore shares. The IPO of 2.01 crore equity shares will close today, 3 October 2019. The price band for the issue has been fixed at Rs 315 to Rs 320 per share. The minimum order quantity is for 40 equity shares and in multiples thereof.

On the derivatives front, the NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 3.95% to 17.42. The Nifty October 2019 futures were trading at 11,392, a premium of 47.45 points compared with the spot at 11,344.55.

On the options front, the Nifty option chain for 31 October 2019 expiry showed maximum call open interest (OI) of 22.46 lakh contracts at the 11,500 strike price. Maximum put OI of 22.12 lakh contracts was seen at 11,000 strike price. The option chain indicates that Nifty will stay between 11,000 and 11,500 in October expiry.

Shares of PSU OMCs advanced after crude oil prices declined in the international commodity market. HPCL (up 4.46%), BPCL (up 3.71%) and Indian Oil Corporation (up 2.43%) advanced.

In the commodities market, Brent crude for December 2019 settlement was down 21 cents at $57.48 a barrel. The contract fell $1.20 or 2.04% to settle at $57.69 a barrel in the previous trading session.

Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

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