Shares at the day's low; India NSE Vix spurts nearly 7%

The domestic equity barometers were currently at the day's low in early afternoon trade. The Nifty traded below the 17,700 level. FMCG shares managed to outperform as they extended their winning streak for third consecutive session.

At 12:25 IST, the barometer index, the S&P BSE Sensex, was down 396.24 points or 0.66% to 59,323.50. The Nifty 50 index declined 135.90 points or 0.76% to 17,680.35.

In the broader market, the S&P BSE Mid-Cap index lost 0.74% while the S&P BSE Small-Cap index slipped 0.81%

The market breadth was weak. On the BSE, 1,167 shares rose, and 2,159 shares fell. A total of 156 shares were unchanged.

Investors turned cautious ahead of the Federal Reserve's monetary policy decision. A three-quarter point increase in rate is expected. But investors are turning their attention to the Fed's updated economic projections, which will show what the Fed thinks about the endpoint on rates as well as its forecasts for inflation and employment.

Fed officials have talked in recent weeks about their determination to tame inflation, using whatever it took, despite any pain that may cause to the economy. Such a stance could also mean a recession in the near future.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.86% to 20.09. The Nifty 29 September 2022 futures were trading at 17,665, at a discount of 15.35 points as compared with the spot at 17,680.35.

The Nifty option chain for the 29 September 2022 expiry showed maximum Call OI of 35.2 lakh contracts at the 18,000 strike price. Maximum Put OI of 31.3 lakh contracts were seen at 17,500 strike price.

Buzzing Index:

The Nifty FMCG index added 0.76% to 44,317.45. The index has added 2.60% in three sessions.

Britannia Industries (up 3.16%), Radico Khaitan (up 2.94%), Hindustan Unilever (up 1.69%), Dabur India (up 1.34%) and Marico (up 1.26%) were the top index gainers.

Among the other gainers were United Breweries (up 0.53%), Nestle India (up 0.49%), Colgate-Palmolive (India) (up 0.45%), United Spirits (up 0.16%) and ITC (up 0.1%).

On the other hand, Varun Beverages (down 2.02%), Tata Consumer Products (down 0.55%) and Godrej Consumer Products (down 0.47%) turned lower.

Stocks in Spotlight:

Tata Consultancy Services (TCS) shed 0.96%. TCS and Zurich Insurance Germany (Zurich) have expanded their partnership, making TCS the exclusive strategic IT partner for Zurich's life insurance IT landscape.

KPIT Technologies advanced 1%. The company announced the acquisition of Munich-based Technica Engineering to accelerate the transformation towards software-defined vehicle (SDV).

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