Nifty below 12,050; VIX inches higher

The barometers continued to trade near day's low in early afternoon trade. The Nifty continued to trade below 12,050 level. Sentiment was affected by weak Asian cues amid rising death toll from a new virus spreading in China. Trading was volatile due to expiry of monthly derivatives today.

At 12:24 IST, the S&P BSE Sensex, was tumbled 278.75 points or 0.68% at 40,933.16. The Nifty 50 index was tumbled 80.95 points or 0.67% at 12,048.55.

The broader market witnessed correction. The S&P BSE Mid-Cap index was down 0.7% while the S&P BSE Small-Cap index was down 0.73%.

The market breadth was titled in favour of bears. On the BSE, 692 shares rose and 1459 shares fell. A total of 140 shares were unchanged. In Nifty 50 index, 9 stocks advanced while 41 stocks declined.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, spurted 1.12% to 16.6825. The Nifty January 2020 futures were trading at 12,040.35, a discount of 6.4 points compared with the spot at 12,046.75.

On the options front, the Nifty option chain for 30 January 2020 expiry showed maximum call open interest (OI) of 84.85 lakh contracts at the 12,100 strike price. Maximum call writing was witnessed at 12,100 strike price, which added 67.12 lakh contracts.

Maximum put OI of 61.47 lakh contracts was seen at 12,100 strike price. Massive put writing was observed at 12,000 strike which added 26.64 lakh contracts. Massive put unwinding was seen at 12,150 strike price which shed 7.18 lakh contracts.

Stocks in Spotlight:

MOIL rose 0.23%. The company has received environmental clearance for enhancement of production capacity from 90,000 TPA to 2,03,200 TPA. The production will increase gradually.

HDFC Bank shed 1.21%. The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 1 crore on the bank for failure to undertake on‐going due diligence in case of 39 current accounts opened for bidding in Initial Public Offer.

Yes Bank declined 5.34%. India Ratings maintained 'Rating Watch Negative (RWN)' on Yes Bank, saying that the lender continues to remain in discussions with potential investors but raising sizeable capital in the near-term could be challenging. RWN indicates that the rating will be either affirmed or downgraded. It has maintained RWN on the Basel III tier-2 bonds of Rs 11,000 crore, additional Basel tier-1 bonds of Rs 11,100 crore and infrastructure bonds of Rs 3,580 crore.

Ashoka Buildcon was up 0.13%. The company's special purpose vehicle (SPV) executed a concession agreement with National Highways Authority of India (NHAI) on 29 January 2020, for the project viz. Tumkur-Shivamogga Section from Km 170.415 to Km 226.750 from Bettadahalli Shivamogga (Package IV) on Hybrid Annuity Mode under Bharatmala in Karnataka. The SPV is a wholly-owned subsidiary of Ashoka Concessions. The accepted bid project cost is Rs 1,382 crore.

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