Nifty tanks below 21,500; metal stocks under pressure; VIX zooms 48%

The frontline indices further declined sharply and hit fresh days low in early afternoon trade. The Nifty dived below the 21,500 level. Metal shares declined after advancing in the past two trading sessions.

The Indian equity market is reacting sharply to the latest political developments, swinging from optimism to pessimism. Indices are in a free fall downward spiral in todays trade, as trends reveal that INDIA block has put up a better fight than anticipated and that Prime Minister Narendra Modi-led NDA is unlikely to win with a huge margin. BSE Sensex and Nifty50 have plummeted nearly 8%, a stark reversal from Monday's 3% gains driven by exit poll projections of a decisive NDA victory.

At 12:32 IST, the barometer index, the S&P BSE Sensex was tumbled 5,661.16 points or 7.40% to 70,807.62. The Nifty 50 index tanked 1,773.90 points or 7.63% to 21,490.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index dropped 11.42% and the S&P BSE Small-Cap index slumped 10%.

The market breadth was skewed in favour of declines. On the BSE, 262 shares rose and 3,465 shares fell. A total of 99 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 48.14% to 31.02. The Nifty 27 June 2024 futures were trading at 23,361.95, at a premium of 127.3 points as compared with the spot at 23,234.65.

The Nifty option chain for the 27 June 2024 expiry showed maximum Call OI of 25.1 lakh contracts at the 22,000 strike price. Maximum Put OI of 53 lakh contracts were seen at 20,000 strike price.

Buzzing Index:

The Nifty Metal index tanked 13.96% to 8,645.85. The index rallied 5.27% in the past two consecutive trading sessions.

Adani Enterprises (down 20%), Steel Authority of India (down 19.99%), Hindustan Copper (down 19.57%), National Aluminium Company (down 19.44%), NMDC (down 14.99%), Vedanta (down 13.67%), Jindal Steel & Power (down 12.48%), Welspun Corp (down 10.17%), Hindustan Zinc (down 9.99%) and Hindalco Industries (down 9.71%) egded lower.

Stocks in Spotlight:

Redington slipped 5.68%. The company said that its board has recommended a dividend of Rs 6.20 per share for the financial year ended 31 March 2024, subject to the approval of shareholders.

Biocon tumbled 8.21%. The firm announced that it has received approval from the U.S. Food and Drug Administration (US FDA), for its vertically integrated, complex injectable drug product, Micafungin.

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