Key indices extended losses and hit fresh intraday low in early afternoon trade. Rising Covid-19 cases and weak global cues dampened investors sentiment. At 12:27 IST, the barometer index, the S&P BSE Sensex, was down 346.22 points or 0.90% at 38,019.13. The Nifty 50 index lost 97.65 points or 0.86% at 11,219.70.
The broader market tumbled. The S&P BSE Mid-Cap index fell 1.38% while the S&P BSE Small-Cap index was declined 2.03%.
Sellers outpaced buyers. On the BSE, 516 shares rose and 1924 shares fell. A total of 130 shares were unchanged.
Investors turned cautious after External Affairs Minister S. Jaishankar was quoted by the media as saying that the current India-China border situation was "very serious". In a fresh sign of escalation, India and China reportedly accused each other of firing into the air on the border of western Himalayas.
The overnight selloff on Wall Street exacerbated the selling in domestic shares. Growing Sino-US tensions have contributed, to some extent, to the recent fall witnessed in the US markets. As per reports, US President Donald Trump launched a fresh broadside against China, promising a "decoupling" of the US economy from the Chinese one if he is re-elected in November.
COVID-19 Update:
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Total COVID-19 confirmed cases worldwide stood at 2,75,79,437 with 8,97,614 deaths, according to data from Johns Hopkins University. India reported 8,97,394 active cases of COVID-19 infection and 73,890 deaths while 33,98,844 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.24% to 23.07. The Nifty September 2020 futures were trading at 11,225.85, at a premium of 6.15 points compared with the spot at 11,219.70.
The Nifty option chain for 10 September 2020 expiry showed maximum Call OI of 35.59 lakh contracts at the 11,300 strike price. Maximum Put OI of 38.40 lakh contracts was seen at 11,000 strike price.
The Nifty option chain for 24 September 2020 expiry showed maximum Call OI of 21.74 lakh contracts at the 11,500 strike price. Maximum Put OI of 29.93 lakh contracts was seen at 11,000 strike price.
Buzzing Index:
The Nifty Pharma index was up 0.51% to 11,149.45. It was the only sectoral index on the NSE to trade in the green. The index had fallen 3.63% in the past three sessions.
Biocon (up 1.42%), Lupin (up 1.09%), Dr. Reddy's Labs (up 0.92%), Torrent Pharma (up 0.70%), Sun Pharma (up 0.69%), Cipla (up 0.73%) and Divi's Labs (up 0.48%) advanced.
Aurobindo Pharma (down 1.27%), Cadila Healthcare (down 0.3%) and Alkem Laboratories (down 0.14%) declined.
Stocks in Spotlight:
IRCTC fell 3.7% to Rs 1326. As per media reports, the government is planning to sell 15-20% of its stake in the company via offer for sale (OFS). The Department of Disinvestment has invited bids for the appointment of merchant bankers and selling brokers, as per a news report.
SML Isuzu fell 2.43% to Rs 403. The company reported a net loss of Rs 52.26 crore in Q1 FY21 as compared to a net profit of Rs 16.66 crore in Q1 FY20. Net sales during the quarter declined 93.9% YoY to Rs 28.74 crore during the quarter.
Info Edge (India) fell 1.92% to Rs 3250. A global brokerage firm has downgraded the stock to 'outperform' from 'buy' with a target price of Rs 3,580. The foreign brokerage reportedly highlighted that the 44% year-on-year (YoY) drop in billing in Q1 was higher than its estimates of a 38% decline. Cost control is likely to stay, though the ad spend could increase, it reportedly said.
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