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Nifty scales 8,600; India VIX slumps 6%

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Last Updated : Mar 20 2020 | 12:50 PM IST
Key benchmark indices paced higher and hit fresh intraday high in early afternoon trade. Buying was broad based with IT and FMCG shares at the fore. Recovery in global stock markets boosted sentiment. The Nifty scaled 8600 mark.

At 12:25 IST, the barometer index, the S&P BSE Sensex, was up 1343.1 points 4.75% at 29,631.33. The Nifty 50 index was surged 384.5 points or 4.65% at 8,647.95.

The broader market advanced. The S&P BSE Mid-Cap index was up 3.91% while the S&P BSE Small-Cap index was up 3.17%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1372 shares rose and 817 shares fell. A total of 115 shares were unchanged. In Nifty 50 index, 48 stocks advanced while 2 stocks declined.

Economy:

Fitch Ratings on Friday cut India's growth forecast to 5.1% for FY 2020-21, saying the coronavirus outbreak is likely to hit business investment and exports. Fitch had in December 2019 projected India's growth at 5.6% for 2020-21 and 6.5% in the following year.

Fitch said the number of people affected by coronavirus will keep rising in the coming weeks but that the outbreak will remain contained. However, there are downside risks to this scenario.

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COVID-19 Crisis:

Coronavirus has infected more than 245,000 people and killed more than 10,000 across the world. More than 88,000 people have recovered.

India has reported 5 deaths and over 195 cases so far. In his address to the nation, PM Narendra Modi called for Janata Curfew on 22 March 2020 and urged people to avoid panic buying.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slipped 6.24% to 67.6875. The Nifty February 2020 futures were trading at 8,529, a discount of 64.65 points compared with the spot at 8,593.65.

On the options front, the Nifty option chain for 26 March 2020 expiry showed maximum call open interest (OI) of 22.86 lakh contracts at the 9000 strike price. Maximum put OI of 18.34 lakh contracts was seen at 8,500 strike price.

Buzzing Index:

The Nifty FMCG index jumped 4.92% to 25,150.25, snapping its two days losing streak.

Hindustan Unilever (up 6.74%), Emami (up 5.75%), ITC (up 5.5%), Nestle India (up 5.17%), Marico (up 4.07%), Colgate Palmolive (up 3.9%), United Breweries (up 3.81%), Britannia Inds (up 3.67%), Tata Consumer Products (up 3.09%), Godrej Consumer Products (up 2.83%), Jubilant Foodworks (up 2.75%), Dabur (up 2.64%), United Spirits (up 2.1%), Godrej Industries (up 0.95%) and Procter & Gamble Hygiene and Healthcare (up 0.71%) were all gainers in Nifty FMCG index.

Stocks in Spotlight:

Godrej Properties (GPL) on Friday (20 March 2020) announced its entry into the Faridabad market with its first residential plotted development. This project will offer approximately 95,000 square meters (1 million sq. ft.) of plotted development potential offering attractive plot sizes along with good lifestyle amenities. The site is strategically located and offers a well-developed social infrastructure with multiple schools, hospitals, and retail spaces in vicinity. This micro-market also has excellent road connectivity to both Delhi and Noida. Shares of Godrej Properties were down 5.65% at Rs 620.

Wonderla Holidays fell 0.26% to Rs 155.10 on declaring that all the amusement parks of the company are to remain shut till Tuesday, 31 March 2020 as per Government's orders to prevent the spread of COVID-19.

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First Published: Mar 20 2020 | 12:27 PM IST

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