Key indices bounced back in afternoon trade and traded with tiny gains. The Nifty was a tad below the 11,900 mark. At 12:26 IST, the barometer index, the S&P BSE Sensex, was up 40.62 points or 0.1% at 40,172.80. The Nifty 50 index was up 14.3 points or 0.12% at 11,891.75.
The broader market continued to outperformed the benchmark indices. The S&P BSE Mid-Cap index was up 0.48%. The S&P BSE Small-Cap index was up 0.66%.
The market breadth was tilted towards the buyers. On the BSE, 1277 shares rose and 978 shares fell. A total of 154 shares were unchanged. In Nifty 50 index, 26 stocks advanced and 24 stocks declined.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 0.89% to 16.135. A fall in volatility index indicates firmness in benchmark index. The Nifty November 2019 futures were trading at 11,919.65, a premium of 26.75 points compared with the spot at 11,892.90. The November 2019 F&O contracts expire on 28 November 2019.
On the options front, the Nifty option chain for 28 November 2019 expiry showed maximum call open interest (OI) of 17.61 lakh contracts at the 12,000 strike price. Maximum put OI of 18.23 lakh contracts was seen at 11,600 strike price. The option chain indicates that Nifty will stay between 11,600 and 12,000 in November expiry.
Buzzing sector:
The Nifty Pharma index was up 0.7% at 7,933.45, rising for the second day running. Lupin (up 2.48%), Piramal Enterprises (up 2.06%), GlaxoSmithKline Pharmaceuticals (up 1.49%), Alkem Laboratories (up 0.49%), Glenmark Pharmaceuticals (up 0.38%), IPCA Laboratories (up 5.83%), Aurobindo Pharma (up 1.09%), Cadila Healthcare (up 1.61%), Cipla (up 0.5%) and Wockhardt (up 0.87%), Sun Pharmaceuticals (up 0.73%) advanced.
Stocks in spotlight:
Shares of Spandana Sphoorty Financial jumped 6.71% at Rs 1,166 after the company announced a decent Q2 result after market hours yesterday. Microfinance institution Spandana Sphoorty reported a drop in net profit on the back of rising deferred tax expense. Net profit fell 42.2% to Rs 42.50 crore on a 40.1% rise in total income to Rs 360.54 crore in Q2 September 2019 as against Q2 September 2018. The company's Deferred Tax Expense rose 262% to Rs 144.81 crore in Q2 September 2019 shrinking company's net profit drastically. Deferred tax impact on company's P&L during Q2 2019 was notionally high since the actual tax outflow in Q2 2018 was only Rs 39.94 crore.
Blue Dart Express gained 2.62% to Rs 2,465 after net profit soared 144.40% to Rs 14.64 crore on 1.69% increase in net sales to Rs 802.17 crore in Q2 September 2019 over Q1 June 2019. Consolidated net profit, however, declined 35% to Rs 14.64 crore on a 0.3% rise in net sales to Rs 802.17 crore in Q2 September 2019 over Q2 September 2018. The announcement was made after trading hours yesterday, 31 October 2019. Effective 1 April 2019, Blue Dart adopted the Ind AS 116 new accounting standard due to which there is higher impact on profit as these are long term leases related to air infrastructure.
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