The domestic equity barometers were currently trading almost flat with some positive bias in early afternoon trade. The Nifty was trading below the 16,650 mark. Metal shares snapped their two-day rising streak.
At 12:29 IST, the barometer index, the S&P BSE Sensex, was up 33.26 points or 0.06% to 55,977.47. The Nifty 50 index added 8 points or 0.05% to 16,642.65.
In the broader market, the S&P BSE Mid-Cap index rose 0.21% while the S&P BSE Small-Cap index gained 0.41%.
The market breadth was strong. On the BSE, 1731 shares rose and 1328 shares fell. A total of 128 shares were unchanged.
Economy:
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Global rating agency, Moody's Investors Service on August 26 said the second wave of Covid will lead to new problem loans in the retail and SME segments, but a severe asset quality decline is unlikely
The improved profitability, capital and loss buffers of banks will help them absorb anticipated loan losses and maintain credit strength, Moody's said in a release.
"A severe deterioration of banks asset quality is unlikely, despite an expected rise in new loan impairments particularly among individuals and small businesses that were hit hardest by the virus outbreak," said Alka Anbarasu, a Moody's Vice President and Senior Credit Officer.
"This is because government initiatives like the emergency credit linked guarantee scheme (ECLGS) have been effective in providing immediate liquidity for businesses," Anbarasu said.
In addition, accommodative interest rates and loan restructuring schemes will continue to mitigate asset risks, such that the coronavirus resurgence will delay but not derail the improvements in banks' balance sheets that had begun before the pandemic, Moody's said.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, advanced 4.44% to 14.10. The Nifty 26 August 2021 futures were trading at 16,641.10, at a discount of 1.55 points as compared with the spot at 16,642.65.
The Nifty option chain for 30 September 2021 expiry showed maximum Call OI of 18.5 lakh contracts at the 16,500 strike price. Maximum Put OI of 24.1 lakh contracts was seen at 16,000 strike price.
Buzzing Index:
The Nifty Metal index fell 1.30% to 5,402.80 amid some bit of profit booking. The index advanced 3.45% in the past two sessions.
NMDC (down 3.46%), SAIL (down 3.18%), National Aluminum Co. (down 2.09%), Welspun Corp (down 1.87%), Vedanta (down 1.74%), JSW Steel (down 1.62%), MOIL (down 1.47%), Hindalco Industries (down 1.37%) and Tata Steel (down 1.06%) declined.
Meanwhile, APL Apollo Tubes (up 1.35%) and Ratnamani Metals Tubes (up 0.14%) bucked the trend.
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