Key benchmarks turned range bound in early afternoon trade. The Nifty continue to hover around 12,200 level. The Nifty's 20 days simple moving average placed at 12,213.86 will act as a crucial resistance in near term.
At 12:25 IST, the S&P BSE Sensex, was down 165.73 points or 0.4% at 41,447.46. The Nifty 50 index was down 46.85 points or 0.38% at 12,201.40.
Shares traded lower as investors appeared to be wary about the fast-spreading coronavirus, which started in the China's Wuhan city. Investors also turned cautious ahead of the Union Budget on Saturday, 1 February 2020.
The S&P BSE Mid-Cap index was up 0.57% while the S&P BSE Small-Cap index was up 0.61%.
The market breadth turned negative. On the BSE, 1098 shares rose and 1124 shares fell. A total of 151 shares were unchanged. In Nifty 50 index, 18 stocks gained while 32 stocks declined.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 6.53% to 16.5775. The Nifty January 2020 futures were trading at 12,185.40, a discount of 9.1 points compared with the spot at 12,194.50.
On the options front, the Nifty option chain for 30 January 2020 expiry showed maximum call open interest (OI) of 49.44 lakh contracts at the 12,200 strike price. Maximum call writing was witnessed at 12,200 strike price, which added 24.34 lakh contracts.
Maximum put OI of 43.47 lakh contracts was seen at 12,000 strike price. Maximum put writing was observed at 12,100 strike which added 7.55 lakh contracts.
The option chain indicates that the Nifty will hover between 12,000 and 12,300 level in January.
Stocks in Spotlight:
Dr.Reddy's Laboratories jumped 3.56% after the company recorded consolidated net loss of Rs 569.70 crore in Q3 December 2019 compared with net profit of Rs 485.20 crore in Q3 December 2018. Consolidated revenues rose 14% to 4383.80 crore in Q3 December 2019 over Q3 December 2018.
EBITDA rose 24% to Rs 1074 crore year-on-year (YoY). EBITDA margin stood at 24.5% in Q3 December 2019, higher than 22.5% in Q3 December 2018. The result was declared on Monday, 27 January 2020.
The company reported pre-tax loss of Rs 527.40 crore in Q3 December 2019 compared with pre-tax profit of Rs 580.50 crore in Q3 December 2018, primarily on account of impairment of intangible assets. Excluding impairment, profit before tax was at Rs 790 crore.
Ion Exchange (India) advanced 3.68%. The firm reported 215.75% jump in consolidated net profit to Rs 26.46 crore on 54.02% rise in total income to Rs 406.10 crore in Q3 December 2019 over Q3 December 2018.
DCB Bank rose 1.9% to Rs 185.3. The bank reported a 12.3% rise in net profit to Rs 96.70 crore on a 13.7% increase in total income to Rs 990.89 crore in Q3 December 2019 over Q3 December 2018. The bank's gross non-performing assets (NPAs) stood at Rs 552.03 crore as on 31 December 2019 as against Rs 523.24 crore as on 30 September 2019 and Rs 445.12 crore as on 31 December 2018. The ratio of gross NPAs to gross advances stood at 2.15% as on 31 December 2019 as against 2.09% as on 30 September 2019 and 1.92% as on 31 December 2018. The ratio of net NPAs to net advances stood at 1.03% as on 31 December 2019 as against 0.96% as on 30 September 2019 and 0.71% as on 31 December 2018.
Siemens rose 0.46%. The company entered into definitive agreements for the acquisition of 99.22% (approximately) of the paid-up equity share capital of C&S Electric from its promoters for Rs 2120 crore, subject to receipt of requisite regulatory approvals and fulfillment of condition precedents as agreed between the parties.
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