Key benchmark indices were trading at day's low in early afternoon trade. Selling pressure was broad based. The Nifty slipped below 11,400 mark. At 12:23 IST, the barometer index, the S&P BSE Sensex, was down 382.94 points or 0.99% at 38,439.63. The Nifty 50 index was down 118.30 points or 1.03% at 11,394.10. Investors remained on the sidelines due to a lack of significant market triggers in the near term.
The Nifty is now trading below its 100-day simple moving average (DMA) placed at 11,407.81. The other key level to watch for the Nifty is 11,251.16, which is 200-DMA.
In broader markets, the S&P BSE Mid-Cap index was down 1.74%. The S&P BSE Small-Cap index was down 1.62%.
On the BSE, 556 shares rose and 1645 shares fell. A total of 133 shares were unchanged. In the Nifty 50 index, 10 stocks advanced while 40 stocks declined.
On the derivatives front, the NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.86% at 16.415. The Nifty October 2019 futures were trading at 11,480.60, a premium of 52.4 points compared with the spot at 11,428.20.
On the options front, the Nifty option chain for 31 October 2019 expiry showed maximum call open interest (OI) of 19.58 lakh contracts at the 11,500 strike price. Maximum put OI of 18.43 lakh contracts was seen at 11,000 strike price. The option chain indicates that Nifty will stay between 11,000 and 11,500 in October expiry.
Cement shares tumbled. UltraTech Cement (down 1.41%), Ambuja Cements (down 1.18%), ACC (down 1.06).
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Grasim Industries was down 1.69%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Kajaria Ceramics rose 1.56% to Rs 563.40 after the company said its subsidiary commenced commercial production of tiles. Kajaria Ceramics announced after market hours on Friday, 28 September 2019, that its wholly-owned subsidiary, Kajaria Tiles, started commercial production of tiles on 29 September 2019 at its manufacturing facility situated near Srikalahasti, Andhra Pradesh. The capacity of the said manufacturing facility of KTPL will be 5 million square metres (MSM) tiles per annum.
Overseas, most Asian stocks were trading lower on Monday. China's factory activity shrank for the fifth straight month in September. The official Purchasing Managers' Index (PMI) was at 49.8 in September, slightly higher than 49.5 in August, data from the National Bureau of Statistics (NBS) showed.
US stocks fell on Friday after reports that the Trump administration was considering delisting Chinese companies from US stock exchanges, raising worries about a further escalation in the US-China trade war.
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