Nifty trades near 12,200 mark; India VIX slumps 10%

Domestic shares continued their uptrend in early afternoon trade amid broad based buying support. The trend was supported by easing tensions in the Middle East, reversal in crude oil prices and a sharp rebound in rupee. The Nifty was trading near 12,200 level.

At 12:24 IST, the S&P BSE Sensex, was up 564.08 points or 1.38% at 41,381.82. The Nifty 50 index gained 167.8 points or 1.4% at 12,193.15.

The broader market outperformed the key benchmarks. The S&P BSE Mid-Cap index was up 1.43% while the S&P BSE Small-Cap index was up 1.49%.

The market breadth was titled in favour of buyers. On the BSE, 1704 shares rose and 561 shares fell. A total of 188 shares were unchanged. In Nifty 50 index, 42 stocks advanced while 8 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slumped 9.49% to 14.155. The Nifty January 2020 futures were trading at 12,243.15, a premium of 54.4 points compared with the spot at 12,188.75.

On the options front, the Nifty option chain for 30 January 2020 expiry showed maximum call open interest (OI) of 25.08 lakh contracts at the 12,500 strike price. Call writing was witnessed at 12,200 strike price, which added 1.22 lakh contracts. Call unwinding was observed at 12,000 strike price which shed 1.73 lakh contracts.

Maximum put OI of 41.87 lakh contracts was seen at 12,000 strike price. Significant put writing was seen at the 12,200 strike price, which added 4.27 lakh contracts.

Stocks in Spotlight:

Shares of Cipla and Glenmark Pharmaceuticals rose by 1.32% to 1.85% on reports that both these companies received regulatory approval for increasing price of two of their respiratory products. According to the media report, the National Pharmaceutical Pricing Authority's (NPPA) has allowed Cipla and Glenmark to enhance pricing of two of their respiratory (inhaler) products on grounds that these were 'innovative' from the other similar products available in the market.

In a meeting in December, the National Pharmaceutical Pricing Authority's (NPPA) expert committee reportedly decided to allow Cipla's Synchrobreathe Inhaler Device a separate price other than the ceiling price already recommended by the regulator.

Adani Green Energy hit an upper circuit limit of 5% at Rs 231.70 after the company disclosed robust provisional operational update for Q3 December 2019. The company said its solar portfolio achieved plant availability of 97.3% in Q3 December 2019, compared with 99.6% in Q3 December 2018. Average portfolio plant availability was affected negatively due to water logging as a result of heavy rainfall at 648 MW Kamuthi Solar PV.

Solar operational capacity rose 13.17% to 2148 megawatt (AC) and up 14.88% at 2803 MW (DC). The company's wind portfolio achieved capacity utilisation factor of 21.5% in Q3 December 2019 versus 8.33% in in Q3 December 2018. The wind portfolio achieved plant availability of 90.4% in Q3 December 2019, compared with 73.6% in Q3 December 2018.

Powered by Capital Market - Live News