Nifty breaches 25,950 mark; auto shares slide

The headline equity benchmarks traded with major cuts in early-afternoon trade as Middle East tensions escalate amid Israel-Lebanon conflict. The Nifty slipped below the 25,950 mark. Auto shares witnessed profit booking after advancing in the past two consecutive trading sessions.

Investors are watching a busy week of US economic data, ending with the November jobs report. This report could greatly affect the Feds decision on interest rate cuts.

At 12:30 IST, the barometer index, the S&P BSE Sensex, tanked 946.14 points or 1.11% to 84,625.71. The Nifty 50 index dropped 275.10 points or 1.05% to 25,903.85.

In the broader market, the S&P BSE Mid-Cap index fell 0.24% and the S&P BSE Small-Cap index shed 0.07%.

The market breadth was negative. On the BSE, 1,602 shares rose and 2,319 shares fell. A total of 162 shares were unchanged.

Economy:

Indias foreign exchange reserves climbed for the sixth consecutive week to a record high of $692.3 billion as of September 20, according to data released by the Reserve Bank of India on Friday (September 27).

The reserves increased by $2.84 billion during the week, following a total rise of $19.3 billion over the previous five weeks.

Foreign currency assets, the largest component of the reserves, rose to $605.7 billion from $603.6 billion in the previous week.

Gold reserves increased, climbing to $63.6 billion from $62.9 billion. Special Drawing Rights (SDRs) stood at $18.5 billion, up from $18.4 billion.

Meanwhile the reserve tranche position with the International Monetary Fund (IMF) fell slightly to $4.46 billion from $4.52 billion.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.81% to 12.78. The Nifty 31 October 2024 futures were trading at 26,065, at a premium of 161.15 points as compared with the spot at 25,903.85

The Nifty option chain for the 31 October 2024 expiry showed maximum Call OI of 64.9 lakh contracts at the 27,000 strike price. Maximum Put OI of 47.7 lakh contracts were seen at 26,000 strike price.

Buzzing Index:

The Nifty Auto index slipped 1.54% to 27,186. The index rallied 2.68% in past two consecutive trading sessions.

Hero MotoCorp (down 3.93%), TVS Motor Company (down 3.04%), Bajaj Auto (down 2.42%), Mahindra & Mahindra (down 2.1%), Samvardhana Motherson International (down 2.09%), Tata Motors (down 1.27%), Maruti Suzuki India (down 0.85%), Balkrishna Industries (down 0.82%), Eicher Motors (down 0.8%) and MRF (down 0.74%) declined.

Stocks in Spotlight :

Kaynes Technology India slipped 2.24%. The company has entered into share purchase agreement (SPA) to acquire 100% stake in Iskraemeco India for total consideration of Rs 42 crore.

Welspun Enterprises advanced 2.30% after the company said that it has been declared as L1 bidder by the Brihanmumbai Municipal Corporation for design and construction of Tertiary Treated Water Conveyance Tunnel from Dharavi to Ghatkopar.

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