Benchmarks trade with deep cuts; NSE India VIX up nearly 10%

The domestic equity benchmarks continued to trade with deep cuts in early afternoon trade. The Nifty continued to trade below the 17,350 mark. FMCG shares witnessed some bit of bargain buying. Investor sentiments were dented tracking weak global cues as Fed Chair in his address last week flagged the likely need for restrictive monetary policy to curb high inflation.

At 12:18 IST, the barometer index, the S&P BSE Sensex, was down 797.4 points or 1.36% to 58,036.47. The Nifty 50 index lost 229.45 points or 1.28% to 17,334.50.

In the broader market, the S&P BSE Mid-Cap index declined 1.04% while the S&P BSE Small-Cap index fell 0.73%.

The market breadth remained weak. On the BSE, 1,214 shares rose and 2,186 shares fell. A total of 186 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 9.77% to 20. The Nifty 29 September 2022 futures were trading at 17,388.40, at a premium of 53.9 points as compared with the spot at 17,334.50.

The Nifty option chain for the 29 September 2022 expiry showed maximum Call OI of 18.9 lakh contracts at the 18,000 strike price. Maximum Put OI of 37.3 lakh contracts were seen at 16,000 strike price.

Buzzing Index:

The Nifty FMCG index rose 0.42% to 42,949.25. The index had declined 0.54% in the past two sessions.

Colgate-Palmolive (India) (up 4.24%), Godrej Consumer Products (up 1.53%), Marico (up 1.28%), Dabur India (up 1.23%) and Nestle India (up 1.02%) were the top gainers.

Among the other gainers were Britannia Industries (up 1.01%), Radico Khaitan (up 0.95%), Hindustan Unilever (up 0.93%), Tata Consumer Products (up 0.88%).

Meanwhile, Varun Beverages (down 2.91%), Procter & Gamble Hygiene and Health Care (down 0.91%) and United Spirits (down 0.74%) edge lower.

Stocks in Spotlight:

SRF rose 0.65%. The company said that it has commissioned and capitalized the second BOPP Film Line & Metallizer at Indore on 25 August 2022 at an aggregate cost of approximately Rs 446 crore.

Alembic Pharmaceuticals gained 0.86%. The drugmaker said that it has received final approval from the US Food & Drug Administration (US FDA) for its Abbreviated New Drug Application (ANDA) for Chlorthalidone Tablets USP.

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