Shares trade with decent gains; VIX slips below 21 mark

Key equity barometers were trading with decent gains in early afternoon trade. Firmness in IT and FMCG stocks boosted the market.

At 12:20 IST, the barometer index, the S&P BSE Sensex, advanced 205.12 points or 0.41% at 50,600.20. The Nifty 50 index added 47.55 points or 0.32% at 14,977.05.

In the broader market, the S&P BSE Mid-Cap index rose 0.29% while the S&P BSE Small-Cap index gained 0.40%.

The market breadth was positive. On the BSE, 1,508 shares rose and 1,275 shares fell. A total of 166 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, dropped 4.95% to 20.1750. The Nifty 25 March 2021 futures were trading at 15,030.05, at a premium of 53 points as compared with the spot at 14,977.05.

The Nifty option chain for 25 March 2021 expiry showed maximum Call OI of 27 lakh contracts at the 16,000 strike price. Maximum Put OI of 26.6 lakh contracts was seen at 14,500 strike price.

Economy:

India's overall exports in February 2021 were $27.93 billion, as compared to $27.74 billion in February 2020, exhibiting a positive growth of 0.67%. In Rupee terms, exports were Rs 2,03,201.56 crore in February 2021, registering a positive growth of 2.46%.

Imports in February 2021 were $40.54 billion (Rs 2,94,985.04 crore), which is an increase of 6.96% in dollar terms and 8.86% in rupee terms over imports in February 2020.

The trade deficit for February 2021 was estimated at $12.62 billion as against the deficit of $10.16 billion in February 2020, which is an increase of 24.14%.

Taking merchandise and services together, overall trade deficit for April-February 2020-21 is estimated at $7.80 billion as compared to the deficit of $75.90 billion in April-February 2019-20.

Meanwhile, Ministry of Finance has released the final weekly installment of Rs 4,104 crore to the States to meet the GST compensation shortfall.

Coronavirus Update:

Total COVID-19 confirmed cases worldwide stood at 12,02,27,839 with 26,60,456 deaths. India reported 2,23,432 active cases of COVID-19 infection and 1,58,856 deaths while 1,10,27,543 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty FMCG index rose 0.61% to 33,260.80. The index fell 1.02% in the past two days.

Varun Beverages (up 1.29%), ITC (up 1.17%), Britannia Industries (up 1%), Tata Consumer Products (up 0.80%) and Colgate Palmolive (India) (up 0.68%) were the top gainers in FMCG Services segment.

Stocks in Spotlight:

Shipping Corporation of India (SCI) declined 2.39% after Life Insurance Corporation of India (LIC) sold 93.73 lakh equity shares, or 2.012% equity of the company between 21 October 2020 to 12 March 2021. Post sale, LIC holds 8.04% stake in SCI from 10.052% held earlier. The transaction was executed as market sale.

AU Small Finance Bank spurted 3.34% after the company successfully raised Rs 625.50 crore through qualified institutional placement (QIP) route. The capital raising committee of board of directors of the bank, at their meeting held on Monday (15 March 2021) approved allotment of 50 lakh shares to eligible qualified institutional buyers at the issue price of Rs 1251 per equity share. The QIP issue opened on 9 March 2021 and closed on 15 March 2021.

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