Market hovers near day's low; India VIX jumps 12%

Barometers traded sideways near the day's low with heavy losses. The Nifty traded above 10,900 level. Shares crashed amid dismal global cues triggered by the global coronavirus outbreak. Sentiment further deteriorated after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on Yes Bank, superseded its board, and imposed a withdrawal limit of Rs 50,000.

At 12:30 IST, the S&P BSE Sensex, was down 1116.02 points or 2.9% at 37,354.59. The Nifty 50 index was down 354.60 points or 3.15% at 10,914.40.

Selling was broad based with S&P BSE Mid-Cap index declining 2.77% while the S&P BSE Small-Cap index falling 2.5%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 292 shares rose and 1905 shares fell. A total of 111 shares were unchanged. In Nifty 50 index, all 50 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 12.53% to 26.1625. The Nifty February 2020 futures were trading at 10,877.35, a discount of 33.7 points compared with the spot at 10,911.05.

On the options front, the Nifty option chain for 26 March 2020 expiry showed maximum call open interest (OI) of 28.93 lakh contracts at the 12,000 strike price. Maximum put OI of 30.19 lakh contracts was seen at 11,000 strike price.

Buzzing Index:

The Nifty Metal index slumped 4.51% to 2,181.70, extending its losing streak to third consecutive session. The metal index has slumped 6% in last three trading days from its previous closing high of 2320.75 posted on 3 March 2020.

Tata Steel (down 6.4%), Vedanta (down 4.87%), Jindal Steel & Power (down 4.6%), Steel Authority of India (down 4.38%), JSW Steel (down 4.27%) National Aluminium Company (down 4.22%), Coal India Ltd (down 3.95%), Hindalco Industries (down 3.5%), NMDC (down 2.07%) and Hindustan Zinc (down 1.62%) were top losers in metal segment.

Stocks in Spotlight:

Pidilite Industries in a regulatory filing announced that it has incorporated a joint venture Company in the name of "Pidilite C-Techos Walling to carry on the business of construction of building works or any other structural or architectural work of any kind using C-Techos wall technology, manufacturing of ACC panels and other ancillary products. Pidilite Industries will hold 60% paid up capital of the JV company. Shares of Pidilite Industries were trading 0.57% lower at Rs 1620.

Maruti Suzuki India fell 2.05% to Rs 6,234.20 after the company's total production dropped 21.31% to 1.40 lakh units in February 2020 from 1.79 lakh units in January 2020. On a year-on-year (Y-o-Y) basis, the company's total passenger vehicles slipped 4.86% in February 2020 over 1.47 lakh units in February 2019.

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