Barometers trade with decent gains; financial services advance; VIX rises 1.7%

The headline equity indices traded with modest gains in early afternoon trade. The Nifty climbed above the 23,700 level after hitting the days low of 23,562.80 in morning trade. Financial services shares advanced after declining in the past two consecutive trading sessions.

At 12:30 IST, the barometer index, the S&P BSE Sensex rose 408.49 points or 0.52% to 78,547.50. The Nifty 50 index added 100.10 points or 0.42% to 23,744.90.

In the broader market, the S&P BSE Mid-Cap index rose 0.07% and the S&P BSE Small-Cap index rallied 0.70%.

The market breadth was strong. On the BSE, 2,569 shares rose and 1,232 shares fell. A total of 156 shares were unchanged.

 

Economy:

Indias fiscal deficit reached Rs 8.5 lakh crore in the first eight months of the fiscal year (April-November), representing 52.5% of the budgeted target, according to government data released on December 31st. This exceeds the deficit recorded during the same period in the previous fiscal year, which stood at 50.7%.

Capital expenditure, though improving, lagged behind last year's pace. At Rs 5.13 lakh crore, it amounted to 46.2% of the budgeted target of Rs 11.1 lakh crore, compared with 58.5% achieved in the corresponding period of the previous fiscal year. Overall government spending reached 60.1% of the budgeted target, slightly higher than the 59% recorded in the previous year.

Revenue receipts fell short of last year's levels. Net tax revenue collection stood at 55.9%, lower than the corresponding figure in the previous year.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 1.73% to 14.70. The Nifty 30 January 2025 futures were trading at 23,863.95, at a premium of 119.05 points as compared with the spot at 23,744.90.

The Nifty option chain for the 30 January 2025 expiry showed a maximum Call OI of 139 lakh contracts at the 24,500 strike price. Maximum put OI of 120.4 lakh contracts was seen at 23,000 strike price.

Buzzing Index:

The Nifty Financial Services index rose 0.50% to 23,630.90. The index shed 0.66% in the past two trading sessions.

Muthoot Finance (up 1.74%), Bajaj Finance (up 0.95%), SBI Cards & Payment Services (up 0.87%), Shriram Finance (up 0.83%), Bajaj Finserv (up 0.71%), ICICI Bank (up 0.6%), HDFC Bank (up 0.58%), ICICI Lombard General Insurance Company (up 0.4%), SBI Life Insurance Company (up 0.35%) and LIC Housing Finance (up 0.34%) advanced.

On the other hand, HDFC Asset Management Company (down 0.8%), ICICI Prudential Life Insurance Company (down 0.79%) and Power Finance Corporation (down 0.46%) edged lower.

Stocks in Spotlight:

Power Mech Projects added 3.67% after the firm secured a Rs 294 crore order from Adani Power for overhauling, testing, and commissioning services for units 3 and 4 of 2x660 MW Korba Phase-II thermal powers.

VA TECH WABAG rose 0.93%. The company said that it has secured an order worth Rs 145 crore from Chennai Petroleum Corporation (CPCL) for installing desalination water pipelines at CPCLs Kattupalli plant.

Kalpataru Projects International (KPIL) rose 0.88%. The company announced that the company and its international subsidiaries have received new orders worth Rs 1,011 crore.

Powered by Capital Market - Live News