Nifty slips below 9,000; FMCG stocks rally

Key barometers sharply pared gains in early afternoon trade amid profit booking. The Nifty slipped below the crucial 9000 mark. FMCG stocks extended rally for the third straight session.

At 12:24 IST, the barometer index, the S&P BSE Sensex, was up 232.30 points or 0.77% at 30,299.51. The Nifty 50 index was up 74.35 points or 0.85% at 8866.55.

The undertone of the market was still bullish amid hopes that the government may come out with stimulus measures for industries before the end of 21-day lockdown on 14 April 2020.

Sentiment also got a boost amid signs that virus cases were potentially peaking. China on Tuesday reported no new deaths from coronavirus over the past 24 hours. The number of new coronavirus cases was dropping in the European hot spots of Italy and Spain.

In the broader market, the S&P BSE Mid-Cap index jumped 2.4% while the S&P BSE Small-Cap index was up 2.23%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1467 shares rose and 588 shares fell. A total of 141 shares were unchanged. In Nifty 50 index, 38 stocks advanced while 12 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, gained 2.88% to 53.29. The Nifty April 2020 futures were trading at 8,845.35, a discount of 20.75 points compared with the spot at 8,866.10.

On the options front, the Nifty option chain for 30 April 2020 expiry showed maximum call open interest (OI) of 15.89 lakh contracts at the 9,000 strike price. Maximum put OI of 23.50 lakh contracts was seen at 8,000 strike price.

Buzzing Index:

The Nifty FMCG index surged 1.9% to 29,292.70, rising for third consecutive session. The index has gained 11.13% in three trading days from its previous closing low of 26358.80 posted on 1 April 2020.

Godrej Consumer Products (up 5%), Dabur (up 4.72%), HUL (up 4.31%), Marico (up 3.93%), Emami (up 3.81%), Colgate Palmolive (up 3.56%), United Spirits (up 3.36%), Nestle India (up 1.73%), Tata Consumer Products (up 1.65%), Procter Gamble Hygiene & Healthcare (up 0.66%) and Britannia Inds (up 0.1%) were top gainers in FMCG segment.

Stocks in Spotlight:

Deepak Nitrite rose 2.74% to Rs 443.65 after it commenced production of 2 Ethyl Hexyl Nitrate (2EHN) at its Nandesari facility effective 6 April 2020, after receiving approval from Vadodara District Industries Commissionerate. Accordingly, the Vadodara District Industries Commissionerate vide their letter dated 31 March 2020 granted permission to the company to commence production of 2EHN at its manufacturing facility situated at Nandesari.

Wipro said that the meeting of the board of directors will be held on 15 April 2020, to consider and approve financial results for the quarter and year ended 31 March 2020. Shares of Wipro were up 1.67% at Rs 195.10.

Va Tech Wabag hit an upper circuit of 5% at Rs 81.90 after the company secured 4.5 million Bahraini Dinar (approximately Rs 90 crore) order from Ministry of Works, Municipalities Affairs and Urban Planning ('MoW') in Kingdom of Bahrain towards operation, maintenance and management of the Madinat Salman sewage treatment plant and long sea outfall for a period of 5 years.

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