Nifty tanks below 23,900; media shares slide; VIX jumps 7.21%

The headline equity indices continued to trade with major losses in early afternoon trade. The Nifty slipped below the 23,900 level. Media shares declined after advancing for the past five consecutive trading sessions.

At 12:30 IST, the barometer index, the S&P BSE Sensex slumped 1,240.54 points or 1.56% to 78,483.58. The Nifty 50 index tumbled 418 points or 1.72% to 23,866.35.

In the broader market, the S&P BSE Mid-Cap index declined 1.50% and the S&P BSE Small-Cap index fell 1.77%.

The market breadth was weak. On the BSE, 1,108 shares rose and 2,824 shares fell. A total of 130 shares were unchanged.

Economy:

The HSBC final Manufacturing Purchasing Managers' Index rose to 57.5 in October from an eight-month low of 56.5 in September. The flash reading was 57.4. A score above 50.0 indicates expansion.

Finally, manufacturers became more optimistic regarding future output volumes. The level of positive sentiment was above the average seen over the 13-and-a-half-year series history. <> Meanwhile, Indias forex reserves declined by $3.463 billion to $684.805 billion in the week ended October 25, according to the latest data from the RBI. For the week ended October 25, foreign currency assets, a major component of the reserves, decreased by $4.484 billion to $593.751 billion.

Gold reserves increased by $1.082 billion to $68.527 billion during the week, the RBI said.

RBI has released monthly data on Indias International Trade in Services for the Month of September 2024 on Thursday. The value of exports and imports of services during September 2024 stood at $ 32,579 million, up 14.6% on year and $16,507 million, up 13.2%, respectively.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 7.21% to 17.05. The Nifty 31 October 2024 futures were trading at 23,985, at a premium of 118.65 points as compared with the spot at 23,866.35.

The Nifty option chain for the 28 November 2024 expiry showed maximum Call OI of 26.7 lakh contracts at the 25,000 strike price. Maximum Put OI of 38 lakh contracts were seen at 24,000 strike price.

Buzzing Index:

The Nifty Media index fell 2.64% to 1,973.70. The index advanced 4.18% for the past five consecutive trading sessions.

PVR Inox (down 5.08%), Saregama India (down 3.94%), Hathway Cable & Datacom (down 3.24%), Dish TV India (down 3.13%), Sun TV Network (down 2.32%), Den Networks (down 2.2%), Zee Entertainment Enterprises (down 2.18%), Nazara Technologies (down 1.14%), Network 18 Media & Investments (down 1%) slipped.

Stocks in Spotlight:

Sun Pharmaceuticals Industries slipped 3.71% after the US District Court of New Jersey has decided to grant a preliminary injunction delaying the launch of Leqselvi (Baldness treatment) in the US.

Mahindra & Mahindra added 1.17% after the auto majors overall auto sales grew by 19.79% to 96,648 vehicles sold in October 2024 as against 80,679 vehicles sold in October 2023.

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