Key barometers extended losses and hit fresh intraday low in early afternoon trade. The Nifty descended toward 12,100 level. At 12:21 IST, the S&P BSE Sensex, declined 124.52 points or 0.30% at 41,207.22. The Nifty 50 index fell 42.03 points or 0.35% at 12,127.55.
Sentiment across global markets had taken a hit overnight amid concerns about the "coronavirus" that has killed 9 in China so far. Investors become cautious as any disease outbreak could depress consumer sentiment and spending, including tourism as well as travel and transport related business.
The broader market traded mixed. The S&P BSE Mid-Cap index was down 0.2% while the S&P BSE Small-Cap index was up 0.13%.
The market breadth, indicating the overall health of the market, was even. On the BSE, 1034 shares rose and 1178 shares fell. A total of 156 shares were unchanged. In Nifty 50 index, 22 stocks advanced while 28 stocks declined.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, spurted 2.23% to 16.2175. The Nifty January 2020 futures were trading at 12,162, a premium of 29.9 points compared with the spot at 12,132.10.
On the options front, the Nifty option chain for 30 January 2020 expiry showed maximum call open interest (OI) of 34.53 lakh contracts at the 12,500 strike price. Maximum call writing was witnessed at 12,200 strike price, which added 7.26 lakh contracts.
Maximum put OI of 34.49 lakh contracts was seen at 12,000 strike price. Maximum put writing was observed at 12,200 strike which added 1.48 lakh contracts.
The option chain indicates that the Nifty will hover between 12,000 and 12,500 level in January.
Q3 Results:
Tejas Networks slumped 6.32% to Rs 84.50 after the company reported a net loss of Rs 112.06 crore in Q3 December 2019 as against a net profit of Rs 32.84 crore in Q3 December 2018. The company recorded pre-tax loss of Rs 14.78 crore in Q3 December 2019 compared with pre-tax profit of Rs 24.91 crore in Q3 December 2019. In Q3 FY20, net sales declined 53% to Rs 86.66 crore on a year-on-year (YoY) basis. The weak revenue during the quarter was primarily due to sharp decline in revenues from India Government segment, which had a YoY decline of 86% for the nine months ended on 31 December 2019.
Hatson Agro Product jumped 3.66%. Net profit of the company rose 50.6% to Rs 27.89 crore in Q3 December 2019, from Rs 18.52 crore in Q3 December 2018. Profit before tax increased by 7.8% to Rs 29.89 crore in Q3 December 2019 from Rs 27.73 crore in Q3 December 2018. Net sales rose 16.1% to Rs 1340.18 crore YoY.
Stocks in Spotlight:
Power Mech Projects edged higher by 1.75% to Rs 730.55 after the company said it won two separate orders worth Rs 351 crore.
Mayur Uniquoters rose 3.62% to Rs 240.75 after the company announced commencement of commercial operation at polyurethane (PU) plant located at Morena in Madhya Pradesh on 21 January 2020.
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