Sensex slides 695 pts, PSU bank stocks decline, VIX soars 8.03%

The frontline indices traded with major losses in early afternoon trade. Weak global cues and sluggish growth outlook of companies spooked investors. The Nifty slipped below the 17,950 mark. PSU bank stocks extended their losses for the second straight session. Trading could be volatile on account of monthly options expiry.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 694.86 points or 1.14% to 60,283.89. The Nifty 50 index lost 207.50 points or 1.16% to 17,910.80.

In the broader market, the S&P BSE Mid-Cap index slipped 1.49% while the S&P BSE Small-Cap index declined 0.96%.

Seller outnumbered buyers. On the BSE, 894shares rose, and 2,480 shares fell. A total of 133 shares were unchanged.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 8.03% to 14.76. The Nifty 25 January 2022 futures were trading at 17,998.40, at a premium of 87.6 points as compared with the spot at 17,910.80.

The Nifty option chain for the 25 January 2022 expiry showed maximum Call OI of 197.6 lakh contracts at the 18,000 strike price. Maximum Put OI of 120.1 lakh contracts were seen at 17,800 strike price.

Buzzing Index:

The Nifty PSU Bank index slipped 3.84% to 4,029.40. The index tumbled 5.15% in two trading sessions.

Bank of India (down 5.3%), Bank of Baroda (down 5.23%), Canara Bank (down 4.58%), State Bank of India (down 4.26%), Punjab National Bank (down 2.97%), Union Bank of India (down 2.29%), Central Bank of India (down 2.15%), Indian Overseas Bank (down 2.06%), Indian Bank (down 1.65%) and Punjab & Sind Bank (down 1.33%) declined.

Earnings Impact:

Sonata Software rose 0.32%. The IT company posted 4.39% rise in consolidated net profit to Rs 117.66 crore on a 51.12% jump in revenue from operations to Rs 2,260.78 crore in Q3 FY23 over Q2 FY23. As compared to Q3 FY22, the IT firm's net profit increased by 20.47% while revenue from operations advanced 21.68%.

Further, the company's board has approved the appointment of Samir Dhir, the current whole-time director & CEO, as managing director & CEO of the company effective from 14 February 2023. The board has also appointed Srikar Reddy, the current managing director and a member of the board of directors, as executive vice chairman effective from the same date as well until 3 April 2026.

Nazara Technologies advanced 2.89% after the company's consolidated net profit jumped 75.73% to Rs 18.1 crore in Q3 FY23 from Rs 10.3 crore recorded in Q3 FY22. Revenue from operations soared 69.43% year on year (YoY) to Rs 314.80 crore in the quarter ended 31 December 2022.

Sona BLW Precision Forgings (Sona Comstar) rallied 4.43% after the company reported a 23.9% jump in consolidated net profit to Rs 107.10 crore on 38.95% surge in revenue from operation to Rs 675.26 crore in Q3 FY23 over Q3 FY22.

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