Key barometers hovered in a narrow range near the day's high in early afternoon trade. Positive cues from other Asian shares, easing of crude oil prices and strengthening rupee lent buying support.
At 12:26 IST, the S&P BSE Sensex, rose 265.23 points or 0.64% at 41,879.70. The Nifty 50 index gained 72.70 points or 0.59% at 12,329.50.
The broader market also enjoyed buying support. The S&P BSE Mid-Cap index was up 0.76% while the S&P BSE Small-Cap index was up 0.79%.
The market breadth was strong. On the BSE, 1453 shares rose and 790 shares fell. A total of 163 shares were unchanged. In Nifty 50 index, 34 stocks advanced while 16 declined.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, surged 2.07% to 14.37. The Nifty January 2020 futures were trading at 12,350, a premium of 27.3 points compared with the spot at 12,322.70.
On the options front, the Nifty option chain for 30 January 2020 expiry showed maximum call open interest (OI) of 26.15 lakh contracts at the 12,500 strike price. Call writing was witnessed at 12,600 strike price, which added 2.08 lakh contracts.
Maximum put OI of 45.89 lakh contracts was seen at 12,000 strike price. Significant put writing was seen at the 12,300 strike price, which added 3.62 lakh contracts.
The option chain indicates that the Nifty will stay between 12,000 and 12,500 level for the month of January.
Stocks in Spotlight:
Torrent Power rose 1.02%. CRISIL has upgraded the long term credit rating of non-convertible debentures and long term bank facilities of the company to CRISIL AA/Stable from CRISIL AA-/Stable. CRISIL has reaffirmed its rating on the short-term bank facilities and commercial paper at CRISIL A1+. CRISIL believes Torrent Power will maintain its strong business risk profile, driven by stable cash flows from its regulated businesses over the medium term. Also, financial risk profile expected to remain healthy.
Shares of Alembic Pharmaceuticals were trading 0.23% lower at Rs 559. The drug maker said it received final approval from USFDA for its Abbreviated New Drug Application (ANDA) Vilazodone Hydrochloride tablets, 10 mg, 20 mg, and 40 mg. Vilazodone Hydrochloride tablets are indicated for the treatment of major depressive disorder.
Hindustan Construction Company (HCC) jumped 6.87% to Rs 11.04 after its lenders initiated a debt/asset carve-out plan of about Rs 2,100 crore to a third-party-controlled SPV in a bid to significantly deleverage the firm and stablize its asset-liability mismatch.
Foreign Markets:
Asian stocks were trading higher ahead of US-China trade deal that will be signed this week on 15 January 2020.
This week Wednesday, U.S. President Donald Trump and Chinese officials are due to sign the long-awaited phase one trade deal between both countries. The deal will involve some tariff relief, increased Chinese purchases of U.S. agricultural goods and changes to intellectual property and technology rules. Meanwhile, Washington and Beijing have agreed to hold semi-annual talks in targeting to resolve disputes and push for reforms.
In US, stocks ended lower on Friday, after the Dow briefly topped the 29,000 milestone, with investor euphoria over recent record highs deflated by data showing slower-than-expected US jobs and wage growth in December.
The US Labor Department said the US economy added 145,000 new jobs in December less than the 266,000 gain in the prior month. The unemployment rate, meanwhile, held near a 50-year low at 3.5%.
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