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Sensex, Nifty hover near day's high

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Capital Market
Last Updated : Jul 17 2020 | 12:50 PM IST
Key barometers held firm near the day's high in early afternoon trade. At 12:29 IST, the barometer index, the S&P BSE Sensex, was up 234.58 points or 0.64% at 36,706.26. The Nifty 50 index added 74.10 points or 0.69% at 10,814.05.

In the broader market, the S&P BSE Mid-Cap index rose 1.06% while the S&P BSE Small-Cap index gained 1.02%.

The market breadth was strong. On the BSE, 1487 shares rose and 876 shares fell. A total of 140 shares were unchanged.

A global brokerage has reportedly downgraded its outlook on Indian stocks after a strong rally in the country's benchmark indices, which followed the coronavirus pandemic this year. The research firm reportedly said that earnings estimates for India have been drastically slashed to negative 0.1% from 27% at the beginning of the year and it further believes that the downgrade cycle is not yet over as ample earnings downgrade risks exist for Indian equities.

Coronavirus Update:

India reported 3,42,473 active cases of COVID-19 infection and 25,602 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 13,808,626 with 589,978 deaths so far, according to data from Johns Hopkins University.

Derivatives:

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The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.01% to 24.8525. The Nifty July 2020 futures were trading at 10,801.50, at a discount of 12.55 points compared with the spot at 10,814.05.

On the weekly index options front, the Nifty option chain for 23 July 2020 expiry showed maximum Call Open Interest (OI) of 25.95 lakh contracts at the 10,800 strike price. Maximum Put OI of 22.55 lakh contracts was seen at 10,700 strike price.

On the monthly index options front, the Nifty option chain for 30 July 2020 expiry showed maximum Call OI of 27.23 lakh contracts at the 11,000 strike price. Maximum Put OI of 35.26 lakh contracts was seen at 10,000 strike price.

Buzzing Segment :

State-run oil marketing companies (PSU OMCs) were in demand as crude oil prices declined. Bharat Petroleum Corporation (up 6.70%), Hindustan Petroleum Corporation (up 5.44%) and Indian Oil Corporation (up 2.08%) advanced.

Crude oil prices fell on Thursday after OPEC+ reportedly agreed to ease record supply curbs and as new infections of the novel coronavirus continue to surge in the United States. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices.

In the commodities market, Brent crude for September 2020 settlement was down 12 cents at $43.25 a barrel. The contract fell 0.96% to settle at $43.37 a barrel during the previous trading session.

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First Published: Jul 17 2020 | 12:30 PM IST

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