Key benchmark indices trimmed losses in early afternoon trade. The Nifty traded above its 100 days simple moving average placed at 11,957. At 12:25 IST, the S&P BSE Sensex, was down 338.55 points or 0.82% at 40,831.58. The Nifty 50 index was down 106.30 points or 0.88% at 11,974.55.
In the broader market, the S&P BSE Mid-Cap index was down 0.26% while the S&P BSE Small-Cap index was down 0.32%.
The market breadth was titled in favour of bears. On the BSE, 842 shares rose and 1397 shares fell. A total of 161 shares were unchanged. In Nifty 50 index, 9 stocks advanced while 41 stocks declined.
Namaste Trump:
US President Donald Trump has arrived at Ahmadabad Airport. Trump and his wife Melania are in India on a 36-hour trip that will see them visiting Ahmedabad, Agra and New Delhi. It is Trump's first presidential visit to India and the fifth official visit by a serving US president to the country since 2000.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 10.12% to 15.0875. The Nifty February 2020 futures were trading at 11,971, a premium of 22 points compared with the spot at 11,949.
On the options front, the Nifty option chain for 27 February 2020 expiry showed maximum call open interest (OI) of 42.97 lakh contracts at the 12,000 strike price. Massive call writing was witnessed at 12,000 strike price, which added 28.93 lakh contracts. Call unwinding was seen at 12,350 strike price which shed 1.66 lakh contracts.
Maximum put OI of 41.97 lakh contracts was seen at 12,000 strike price. Massive put writing was observed at 11,900 strike price which added 12.18 lakh contracts. Put unwinding was observed at 12,100 strike price which shed 4.56 lakh contracts.
Stocks in Spotlight:
Shares of Biocon were trading 1.79% higher at Rs 320.65. Biocon on Saturday (22 February) said its facility in Malaysia received three observations from the US drug regulator. The US Food and Drug Administration (USFDA) conducted a pre-approval inspection (PAI) of insulin manufacturing facility of Biocon's Malaysian subsidiary for insulin Glargine, between 10 and 21 February 2020. Biocon said it believes that the observations are procedural in nature. It will respond to the FDA with an appropriate Corrective and Preventive Action Plan (CAPA) and is confident of addressing these observations expeditiously. The FDA has set a target action date for our Insulin Glargine application in June 2020.
Alkem Laboratories fell 0.87% to Rs 2634.55 after the company said its facility in Baddi, Himachal Pradesh received a Form 483 with two observations from the US drug regulator. The US Food and Drug Administration (USFDA) had conducted an inspection at the company's manufacturing facility located at Baddi, India from 17 to 21 February 2020. The company said it will put together a detailed response with adequate corrective and preventive measures to address the USFDA observations and the same is proposed to be filed within the timeline stipulated by USFDA.
GMR Infrastructure (GIL) surged 11.65% to Rs 26.35 after the company announced a strategic partnership with Groupe ADP for its airports business. GMR Infrastructure said that it has signed a share purchase agreement pursuant to which Groupe ADP will hold 49% stake in GMR Airports (GAL) for an equity consideration of Rs 10,780 crore, valuing GAL at the base post money valuation of Rs 22,000 crore.
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