Nifty trades near 23,550; FMCG shares advance; VIX jumps nearly 6%

The headline equity benchmarks traded with moderate gains in early afternoon trade. The Nifty traded near the 23,550 mark after the hitting days low of 23,350 in morning trade. FMCG shares advanced after declining in the previous trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 166.44 points or 0.23% to 77,376.34. The Nifty 50 index rose 48.80 points or 0.21% to 23,549.90.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.41% and the S&P BSE Small-Cap index added 0.56%.

The market breadth was positive. On the BSE, 2,138 shares rose and 1,724 shares fell. A total of 177 shares were unchanged.

Economy:

After hitting all-time high levels following continuous gains, Indias foreign exchange (forex) reserves fell $2.922 billion to $652.895 billion during the week ended June 14, according to the latest data from the Reserve Bank of India (RBI).

This decline follows a significant increase of $4.307 billion in the previous reporting week, which pushed the reserves to a record high of $655.817 billion after several consecutive weeks of gains.

The decrease in forex reserves was primarily driven by a reduction in foreign currency assets, which are a major component of the reserves. These assets fell by $2.097 billion, bringing the total to $574.24 billion.

Gold reserves also saw a decrease, dropping by $1.015 billion to $55.967 billion during the week. Meanwhile, the special drawing rights (SDRs) were down by $54 million, amounting to $18.107 billion. In contrast, Indias reserve position with the International Monetary Fund (IMF) increased by $245 million, reaching $4.581 billion.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 5.86% to 13.95. The Nifty 27 June 2024 futures were trading at 23,540.80, at a discount of 9.10 points as compared with the spot at 23,549.90.

The Nifty option chain for the 27 June 2024 expiry showed maximum Call OI of 110.5 lakh contracts at the 24,000 strike price. Maximum Put OI of 109.4 lakh contracts were seen at 22,300 strike price.

Buzzing Index:

The Nifty FMCG index rose 0.72% to 56,394.60. The index fell 1.20% in the past trading session.

Radico Khaitan (up 2.11%), Marico (up 1.43%), Nestle India (up 1.31%), Godrej Consumer Products (up 1.24%), United Spirits (up 1.05%), Dabur India (up 0.91%), ITC (up 0.86%), Tata Consumer Products (up 0.83%), Hindustan Unilever (up 0.54%) and Balrampur Chini Mills (up 0.32%) advanced.

On the other hand, Procter & Gamble Hygiene and Health Care (down 0.65%), Varun Beverages (down 0.41%) and Britannia Industries (down 0.37%) edged lower.

Stocks in Spotlight :

Larsen & Toubro (L&T) rose 0.69%. The company announced that its power transmission & distribution (PT&D) business has secured a significant domestic order to build Solar PV Plant along with a Battery Energy Storage System (BESS).

Ujjivan Small Finance Bank slipped 4.55% to Rs 46.16 after the bank revised its loan book growth guidance for FY2024-25 downwards to 20% from nearly 25% announced earlier.

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