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Market breadth turns negative; India VIX rises 1%

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Capital Market
Last Updated : Feb 07 2020 | 1:05 PM IST
Key barometers further extended losses and hit the day's low in early afternoon trade. The Nifty slipped below its crucial 12,100 mark. Negative global cues triggered profit selling in domestic shares after gains in past four trading sessions.

At 12:26 IST, the S&P BSE Sensex, was down 191.04 points or 0.46% at 41,114.99. The Nifty 50 index was down 50.3 points or 0.41% at 12,087.65.

The broader market pared early gains. The S&P BSE Mid-Cap index was up 0.07% while the S&P BSE Small-Cap index was up 0.32%.

The market breadth turned negative. On the BSE, 1097 shares rose and 1112 shares fell. A total of 138 shares were unchanged. In Nifty 50 index, 25 stocks advanced while 25 stocks declined.

Most Asian stock markets fell on Friday, following three sessions of broad gains, as investors waited for the release of China's January trade numbers.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 0.94% to 13.91. The Nifty February 2020 futures were trading at 12,081.10, a discount of 6.8 points compared with the spot at 12,087.90.

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On the options front, the Nifty option chain for 27 February 2020 expiry showed maximum call open interest (OI) of 25.94 lakh contracts at the 12,500 strike price. Call writing was witnessed at 12,500 strike price, which added 1.99 lakh contracts.

Maximum put OI of 31.63 lakh contracts was seen at 12,000 strike price. Massive put writing was observed at 11,600 strike which added 1.03 lakh contracts.

The option chain indicates that the Nifty will stay between 12,000 and 12,500 level till February expiry.

Q3 Results:

Shares of E.I.D. Parry were trading 2.05% lower at Rs 233.55. The company reported an 85.7% jump in consolidated net profit to Rs 156.77 crore in Q3 December 2019 over Q3 December 2018. Net sales rose 9.9% YoY to Rs 4081.64 crore in Q3 December 2019. The company said that the board has approved Rs 99 crore capacity expansion of Sugar and Cogeneration at Haliyal Plant.

Shares of ICRA were trading 0.19% higher at Rs 2925. The company's consolidated net profit tumbled 16.6% to Rs 22.2 crore in Q3 December 2019 as compared to Rs 26.63 crore reported in Q3 December 2018. Net sales declined 6.3% to Rs 79.36 crore in Q3 December 2019 over Q3 December 2018. The company clarified that drop in net sales is on the back of lower revenues from rating service business.

Shares of Indraprastha Gas (IGL) were trading 1.01% lower at Rs 517. IGL reported 34.8% jump in consolidated net profit to Rs 297.37 crore in Q3 December 2019 (Q3 FY20) over Q3 December 2018 (Q3 FY19). Profit before tax in the December quarter stood at Rs 392.66 crore, up 17.5% from Rs 334.12 crore in Q3 last year. The result was announced after market hours yesterday. During Q3 FY20, CNG sales volume increased by 9% to 317.76 million kgs and PNG sales volumes increased by 18% to 163.80 million scm over Q3 of FY19. On an overall basis there is 13% increase in sales volume during this quarter as they stood at 615.96 million scm as compared to the corresponding quarter of FY19.

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First Published: Feb 07 2020 | 12:28 PM IST

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