The market continued to trade near day's high in early afternoon trade. Domestic shares mirrored gains in other Asian markets on hopes of progress in the US-China trade talks. The market also rose on bargain hunting after selling in the past two sessions.
At 12:19 IST, the barometer index, the S&P BSE Sensex, was up 358.99 points or 0.89% at 40,718.40. The BSE Sensex trades 97.98 points below its intra day record high of 40816.38 registered on 20 November 2019.
The Nifty 50 index was up 110.35 points or 0.93% at 12,024.75. The Nifty holds above its crucial level of 12,000.
The S&P BSE Mid-Cap index was up 0.79%. The S&P BSE Small-Cap index was up 0.56%.
The market breadth was titled in the favour of buyers. On the BSE, 1273 shares rose and 898 shares fell. A total of 169 shares were unchanged. In Nifty 50 index, 42 stocks advanced while 8 stocks declined.
Derivatives:
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The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.6% to 14.485. A decline in volatility indicates stability in benchmark index. The Nifty November 2019 futures were trading at 12,024.35, a premium of 6.05 points compared with the spot at 12,018.30. 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 43.96 lakh contracts at the 12,000 strike price. Maximum put OI of 45.62 lakh contracts was seen at 11,900 strike price. The option chain indicates that Nifty will stay between 11,900 and 12,000 in November expiry.
Buzzing Index:
Shares of steel producers gained on Monday after media reports suggested that US Steel and ArcelorMittal have raised flat-rolled steel prices today, their third increase in less than a month.
Jindal Steel & Power (up 5.34%), Hindalco Industries (up 4.08%), Jindal Stainless (up 3.61%), Tata Steel (up 3.35%), NMDC (up 3.29%), JSW Steel (up 2.57%) and SAIL (up 1.81%) advanced.
Jayant Acharya, director (sales and marketing), JSW Steel, was quoted by the media saying that, globally, steel prices have gone up by $20-$30 a tonne due to a production shut-down by most steel companies, as their selling prices had fallen below production costs. Last week, the media reported that steel companies in India have hiked prices by Rs 500-750 a tonne for the first time this fiscal. However, domestic prices are still at a discount to international prices, suggesting some room for further upside in steel prices.
Stocks in Spotlight:
Inox Wind jumped 12.95% to Rs 36.2 after Solar Energy Corporation of India (SECI) granted the company a time extension on commissioning date for 5x50 MW ISTS connected Wind Power Projects in Gujarat. The time extension given by SECI is on the back of delay in operationalization of Long Term Access by the Central Transmission Utility (CTU). Out of the total 250 MW of SECI 1 at Dayapar, the company has successfully commissioned 200 MW in June 2019 & July 2019. Furthermore, SECI has also granted permission to the Company to commission the balance 50 MW Project, which is already under execution.
Edelweiss Financial Services reported that ECL Finance, the NBFC arm of the Edelweiss Group, has successfully raised Rs 500 crore through public issue of secured redeemable non-convertible debentures. The Tranche II Issue opened on November 4th, 2019 and closed on 22 November 2019. The base size of the issue was Rs 100 crore with a green-shoe option of up to Rs 400 crore. Edelweiss further reported that the Tranche II Issue has seen significant a demand in the retail, HNI and corporate segments with the issue receiving over 16,000 applications. The stock was up 2.28% at Rs 125.35.
MEP Infrastructure Developers reported that the company has received the Letter of Award (LOA) from National Highways Authority of India (NHAI), for the project of 'Collection of user fee at Chhajarsi Fee Plaza Delhi- Merrut Expressway, Uttar Pradesh. The contractual amount for the project is Rs 158.40 crore payable to NHAI on a weekly basis. Shares of MEP Infra were trading 2.91% higher at Rs 40.65.
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