Key indices further pared gains in early afternoon trade amid profit booking. Shares came off day's high amid political uncertainty in Maharashtra. Investors were also concerned about India's economic growth.
Barring the Nifty Realty index, all other sectoral indices on the NSE were trading higher. At 12:25 IST, the barometer index, the S&P BSE Sensex, was up 66.30 points or 0.16% at 40,887.60. The Nifty 50 index was up 24.75 points or 0.21% at 12,062.45.
In the broader market, the S&P BSE Mid-Cap index was up 0.01%. The S&P BSE Small-Cap index was down 0.02%.
The market breadth turned negative. On the BSE, 1073 shares rose and 1104 shares fell. A total of 161 shares were unchanged. In Nifty 50 index, 36 stocks advanced and 14 stocks declined.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 1.01% to 14.6875. The Nifty November 2019 futures were trading at 12,085.70, a premium of 21.05 points compared with the spot at 12,064.65.
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On the options front, the Nifty option chain for 28 November 2019 expiry showed maximum call open interest (OI) of 40.46 lakh contracts at the 12,100 strike price. Massive call writing was witnessed at 12,100 strike price, which added 11.75 lakh contracts. Maximum call unwinding was seen at the 12,500 strike price, which shed 3.13 lakh contracts.
Maximum put OI of 58.13 lakh contracts was seen at 12,000 strike price. Significant put writing was seen at the 12,100 strike price, which added 19.19 lakh contracts. Minor put unwinding was witnessed at 11,600 strike price, which shed 2.9 lakh contracts.
The option chain indicates that Nifty will stay between 12,000 and 12,100 in November expiry. The November contracts expire on Thursday, 28 November 2019.
Economy:
India's GDP data for September quarter is scheduled to be published on 29 November 2019. Ratings firm ICRA expects further deterioration in the growth of India's GDP to 4.7% in Q2 of FY2020, due to weakening momentum in the industry.
The Organisation for Economic Co-operation and Development (OECD) recently cut India's economic growth forecast for 2019 to 5.8%, but said it would pick up to 6.2% in 2020 and further to 6.4% in 2021. India's economy grew 6.8% in FY19.
Politics:
Ahead of his swearing-in ceremony on Thursday, Maharashtra CM-designate Uddhav Thackeray met Governor Bhagat Singh Koshyari at Raj Bhavan on Wednesday. Thackeray, who is the first from his family to be sworn-in as the CM, will have six months to become a member of the Legislative Assembly. NCP's Jayant Patil and Congress's Balasaheb Thorat will become Deputy Chief Ministers of Maharashtra.
Newly-elected 288 MLAs were administered the oath in the Maharashtra Assembly today. The development comes a day after Devendra Fadnavis tendered his resignation following the Supreme Court's order for a floor test. NCP's Ajit Pawar also resigned as the Deputy chief minister. He later met NCP chief and his uncle Sharad Pawar at the latter's residence.
Buzzing Index:
The Nifty Realty index was down 1.13% at 274.95. The index has risen 4.98% in the past one month. DLF (down 2.43%), Oberoi Realty (down 1.81%), Indiabulls Real Estate (down 1.16%), The Phoenix Mills (down 0.53%), Godrej Properties (down 0.52%), Anant Raj (down 0.3%) and Omaxe (down 0.21%) declined.
Prestige Estates Projects rose 3.57% to Rs 306.05 on reports that the real estate developer inked pact with Marriott International to develop six hotels across South India.
Stocks in Spotlight:
Seamec rose 1.20% to Rs 479.90 after the company's vessel, Seamec Princess, has been contracted with Posh Subsea for working at Mumbai High Offshore. The tenure of the contract is for a period of 180 days with an option of extension. The value of charter during firm period is $4.86 million. The announcement was made after market hours yesterday, 26 November 2019.
Max India slipped 0.26% to Rs 75.5. Max India informed that the divestment of entire equity shareholding of the company in Pharmax Corporation has been completed on 25 November 2019 and the company has received Rs 60.73 crore as consideration for the divestment in terms of the Share Purchase Agreement executed amongst Max Estates, Max India and Pharmax Corporation. Consequently, Pharmax Corporation ceased to be a subsidiary of Max India with effect from 25 November 2019.
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