Key barometers were range bound with modest gains in early afternoon trade. At 12:22 IST, the barometer index, the S&P BSE Sensex, was up 68.91 points or 0.17% at 40,958.14. The Nifty 50 index was up 10.55 points or 0.09% at 12,084.30.
The broader market traded near the flat line. The S&P BSE Mid-Cap index was up 0.12%. The S&P BSE Small-Cap index was up 0.22%.
The market breadth was positive. On the BSE, 1108 shares rose and 1065 shares fell. A total of 147 shares were unchanged. In Nifty 50 index, 29 stocks advanced and 21 stocks declined.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.38% to 14.6450. A decline in volatility indicates stability in benchmark index. The Nifty November 2019 futures were trading at 12,084.30, a premium of 8.55 points compared with the spot at 12,075.75. The November 2019 F&O contracts expire on 28 November 2019.
On the options front, the Nifty option chain for 28 November 2019 expiry showed maximum call open interest (OI) of 33.40 lakh contracts at the 12,100 strike price. Massive call writing was witnessed at 12,200 strike price, which added 10.40 lakh contracts. Minor call unwinding was seen at the 12,000 strike price, which shed 2.12 lakh contracts.
Maximum put OI of 53.89 lakh contracts was seen at 12,000 strike price. Significant put writing was seen at the 12,100 strike price, which added 10.89 lakh contracts. Minor put unwinding was witnessed at 11,900 strike price, which shed 1.72 lakh contracts.
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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.
Stocks in Spotlight:
Thomas Cook (India) announced after trading hours yesterday, 25 November 2019, that the composite scheme of arrangement and amalgamation amongst TC Forex Services and Travel Corporation (India) and TC Travel Services and SOTC Travel Management and Thomas Cook (India) and Quess Corp and their respective shareholders (the scheme) has become effective on Monday, 25 November 2019. Post sanction of the Scheme by the National Company Law Tribunal (NCLT) Mumbai Bench on 10 October 2019 and by the NCLT Bengaluru Bench on 7 November 2019, the board has fixed 6 December 2019 as the record date, for the purpose of determining the shareholders of Thomas Cook (India) who shall be entitled to receive the equity shares of Quess Corp as per the share entitlement ratio mentioned in the scheme.
Shares of Thomas Cook were trading 1.24% higher at Rs 155.
InterGlobe Aviation fell 2.53% to Rs 1413.75 after media reports suggested that the Directorate General of Civil Aviation (DGCA) was dissatisfied with Indigo's efforts to modify the glitch-prone older Pratt & Whitney (PW) engines installed on Airbus A320Neo aircraft. The regulator reportedly said that for every new A320Neo aircraft that IndiGo adds to its fleet henceforth, it would have to ground a similar aircraft with unmodified engines. This means a significant portion of IndiGo's fleet could be grounded if the carrier fails to meet 31 January, 2020, deadline. The said deadline was issued to the company by the DGCA early in November after a series of engine incidents, the reports added.
Alembic Pharmaceuticals was up 1.01% after the company received final approval from the USFDA for Silodosin Capsules. Silodosin Capsules are used for the treatment of the signs and symptoms of benign prostatic hyperplasia. According to IQVIA, Silodosin Capsules have an estimated market size of US$ 114 million for twelve months ending June 2019.
Politics:
The Supreme Court (SC) on Tuesday ordered a floor test on Wednesday, 27 November 2019, to determine the strength of the BJP-led Maharashtra government, which an opposition alliance says does not command majority support. The swearing in of members needs to be completed by 5 pm. The proceedings shall be live telecast. Pro-tem Speaker should be appointed to conduct floor test. It will be open ballot.
All parties will now need to make submissions within eight weeks, as issues regarding the judicial review of the governor's decision (to swear in a BJP-led government) remain.
Shiv Sena's lawyer Kapil Sibal raised plea on restraining Fadnavis from taking policy decisions till after floor test but SC bench shrugged it off.
BJP leader Devendra Fadnavis was sworn in on Saturday (23 November 2019) morning as the chief minister of Maharashtra for the second consecutive term. Ajit Pawar, a member of the NCP, took oath as deputy chief minister of the state. Ajit Pawar is the nephew of NCP president Sharad Pawar.
The tussle over government formation in Maharashtra reached SC after the Shiv Sena-Nationalist Congress Party (NCP)-Congress combine challenged the BJP for forming a government in Maharashtra.
The three parties argued that BJP leader Devendra Fadnavis doesn't have the numbers to be chief minister, taking their fight separately to Parliament. BJP and the central government lawyers said Fadnavis will prove his majority, but the court didn't have the power to direct Maharashtra's governor to fix a deadline for a floor test in the Assembly.
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