Key equity barometers continued trading in a narrow band near the day's low in early afternoon trade. The Nifty struggled to regain the crucial 12,300 mark. Profit selling emerged as firmness in crude oil prices affected market sentiment. At 12:27 IST, the S&P BSE Sensex, was down 175.87 points or 0.42% at 41,769.52. The Nifty 50 index was down 0.5% at 12,291.15.
The S&P BSE Mid-Cap index was down 0.19% while the S&P BSE Small-Cap index was down 0.09%.
The market breadth was negative. On the BSE, 924 shares rose and 1340 shares fell. A total of 159 shares were unchanged. In Nifty 50 index, 16 stocks advanced while 34 stocks declined.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, spurted 6.88% to 15.10. The Nifty January 2020 futures were trading at 12,313, a premium of 17.15 points compared with the spot at 12,295.85.
On the options front, the Nifty option chain for 30 January 2020 expiry showed maximum call open interest (OI) of 31.42 lakh contracts at the 12,500 strike price. Call writing was witnessed at 12,300 strike price, which added 6.43 lakh contracts.
Maximum put OI of 37.15 lakh contracts was seen at 12,000 strike price.
The option chain indicates that the Nifty will hover between 12,000 and 12,500 level in January.
Buzzing Segment:
Shares of six public sector undertakings (PSUs) were in action after the NSE announced changes in the Nifty CPSE (Central Public Sector Enterprises) index on Friday, 17 January 2020.
Earlier, stocks having more than 51.5% government holding under promoter category were eligible for inclusion in the index. As per the revised norms, stocks having more than 51% government holding under promoter category would be eligible for inclusion in the index.
Accordingly, Power Finance Corporation (down 6.68%) and Indian Oil Corporation (down 3.63%) were excluded from the Nifty CPSE Index. While NHPC (up 10.54%), NMDC (up 5.01%), Power Grid Corporation of India (up 3.65%) and Cochin Shipyard (up 3.58%) were included in the index.
The total number of constituents forming part of NIFTY CPSE index will change from 10 to 12. These changes shall become effective from 24 January 2020 (close of 23 January 2020), the exchange said in a press release.
Q3 Result:
L&T Finance Holdings fell 6.05% to Rs 119.55 after consolidated net profit rose 1.9% to Rs 591.03 crore on 8.44% increase in total income to Rs 3,735.79 crore in Q3 December 2019 over Q3 December 2018. Consolidated profit before tax (PBT) slipped 6.5% to Rs 725.22 crore in Q3 December 2019 as against Rs 775.81 in Q3 December 2018. The result was announced after market hours on Friday, 17 January 2020.
GNA Axles slumped 12.34% to Rs 278.8 after the company announced a dismal Q3 2019 result on 18 January 2020. On consolidated basis, net profit slumped 57.5% to Rs 7.63 crore in Q3 December 2019 as against Rs 17.95 crore in Q3 December 2018. Net sales for Q3 2019 stood at Rs 214.14 crore as against Rs 246.25 crore in Q3 2018, registering a fall of 13%.
Foreign Markets:
Most shares in Asia were trading higher on Monday. The moves came as the People's Bank of China kept the one year and five year loan prime rates unchanged for January.
Oil prices were higher, with international benchmark Brent crude futures up 1.19% to $65.62 per barrel.
In US, stocks closed higher on Friday, ending the week at new record high, helped by data suggesting the economy and corporate profits are in good health.
The rally this week has also been supported by at least a partial resolution of the US-China trade dispute and the passage of the US, Mexico, Canada trade deal by Congress.
Sentiment was boosted by data on US December housing starts that showed home constructing rising 16.9%, to annual rate of 1.608 million units, to the fastest pace since 2006. In other US economic data, the Federal Reserve reported that industrial production fell 0.3% in December.
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