Rising COVID-19 cases spooked investors. Introduction of new margin requirement in the cash segment from 1st September and geo-political tensions between India-China also impacted sentiment.
The broader market was trading firm. The S&P BSE Mid-Cap index was up 0.49% while the S&P BSE Small-Cap index surged 0.89%. Both these indices have risen 3% in three sessions.
The market breadth was positive. On the BSE, 1392 shares rose and 1019 shares fell. A total of 164 shares were unchanged.
The Sebi's new margin rules came into effect from 1 September 2020. As per the new rule, it is mandatory for brokers to collect margins from investors upfront for any purchase or sale of shares. Failing to do so will attract a penalty. Sebi has introduced these measures to safeguard the interest of all investors.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 25,938,122 with 861,679 deaths. India reported 8,15,538 active cases of COVID-19 infection and 67,376 deaths while 29,70,492 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Meanwhile, India continued to report one of the lowest COVID Case Fatality Rates (CFR) when compared to several other countries. While the global CFR stands at 3.3% as on date, the comparative figure for India is 1.76%, an official update noted today. The deaths per million population in India is one of the lowest in the world. While the global average is 110 deaths /million population, India is reporting 48 deaths /million population. The comparative figure for Brazil and the UK is 12 and 13 times higher, respectively.
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Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2% to 20.6825. The Nifty September 2020 futures were trading at 11,531.35, at a premium of 6.8 points compared with the spot at 11,524.55.
The Nifty option chain for 3 September 2020 expiry showed maximum Call OI of 64.58 lakh contracts at the 11,600 strike price. Maximum Put OI of 51.18 lakh contracts was seen at 11,500 strike price.
The Nifty option chain for 24 September 2020 expiry showed maximum Call OI of 20.49 lakh contracts at the 12,000 strike price. Maximum Put OI of 29.82 lakh contracts was seen at 11,000 strike price.
Buzzing Segment:
Aviation stocks were in demand after the Ministry of Civil Aviation decided to increase capacity of domestic flights to 60% from the current levels of 45%.
Shares of SpiceJet were trading 2.75% higher at Rs 52.35 while InterGlobe Aviation which operates IndiGo Airline gained 1.53%.
Stocks in Spotlight:
Jindal Steel & Power was down 0.2%. The company informed that the company's consolidated steel production has risen by 21% to 8,25,000 tonnes in August 2020 from 6,81,000 tonnes produced in August 2019. JSPL's consolidated steel sales in the month of August stood at 8,36,000 tonnes, up by 38% from 6,06,000 tonnes sold in the same period last year. The company further said that steel exports contributed to 42% of the total sales volume.
VIP Industries was down 0.63%. The board of VIP Industries agreed to dispose of the land and building of the Haridwar factory in Uttarakhand on 'as-is-where- is' basis to Fresh PET for about Rs 25-30 crore. The operations at the said Haridwar factory of the company were suspended since March 2020 due to Covid-19 Pandemic. Turnover of Haridwar factory during the FY20 was Rs 246.60 crore (14.39% of the total turnover of the company for the FY20). Contribution made by Haridwar factory in net worth during the FY20) was Rs 27.11 crore (15.98% of the net profit before exceptional item and tax of the company for the FY20).
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