The domestic equity benchmarks traded with steep losses in the early afternoon trade. The Nifty traded below the 15,300 level. IT stocks declined for the third consecutive trading session.
At 12:25 IST, the barometer index, the S&P BSE Sensex, was down 299.89 points or 0.58% to 51,195.90. The Nifty 50 index fell 92.55 points or 0.60% to 15,268.05.
In the broader market, the S&P BSE Mid-Cap index shed 0.85% while the S&P BSE Small-Cap index fell 1.21%.
The market breadth was weak. On the BSE, 830 shares rose and 2,364 shares fell. A total of 104 shares were unchanged.
Fears loomed across markets that the rising attempts of central banks to curb inflation would lead to a slowdown in global economic growth and could possibly lead to a recession.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.25% to 23.38. The Nifty 30 June 2022 futures were trading at 15,275.65, at a premium of 7.6 points as compared with the spot at 15,268.05.
The Nifty option chain for 30 June 2022 expiry showed maximum Call OI of 27.3 lakh contracts at the 16,000 strike price. Maximum Put OI of 44 lakh contracts was seen at 15,500 strike price.
Buzzing Index:
The Nifty IT index fell 2.54% to 26,448.10.The index slipped 5.38% in three sessions.
Mphasis (down 4.59%), Tata Consultancy Services (down 3.25%), L&T Technology Services (down 2.57%), Tech Mahindra (down 2.5%), Mindtree (down 1.81%), Infosys (down 1.71%), Larsen & Toubro Infotech (down 1.61%) and HCL Technologies (down 1.45%) declined.
Wipro fell 4.17%. Eros Investments has signed an alliance agreement with Wipro to evolve and scale the artificial intelligence (AI) and machine learning (ML) based content localization solution. The joint content localization service will be available to media and entertainment companies in two deployment models: platform-as-a-service and private cloud deployment.
Stocks in Spotlight:
Delta Corp rallied 7.69% after the firm said that its wholly-owned subsidiary, Deltatech Gaming (DGL), has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offer. The IPO will comprise a fresh issue of equity shares of face value of Re 1 each, for an amount aggregating up to Rs 300 crore and an offer for sale (OFS) of the equity shares held by the company, for an amount aggregating up to 250 crore.
Prime Focus shed 4.38% after the company announced that its UK-based subsidiary DNEG and Sports Ventures Acquisition Corp. mutually agreed to terminate their previously announced business combination agreement, effective immediately. The companies decided to break off the business combination agreement as a result of current unfavorable special purpose acquisition company (SPAC) market conditions and other factors.
Dev Information Technology slipped 4.95% after the digital services company won an order worth Rs 46 lakh from Gujarat State Seed Certification Agency (GSSCA) for designing, development and maintenance of web application. The web application will work as citizen centric web portal for GSSCA. It will facilitate self-registration for farmers or through the seed producing agency of the respective district. The time period for execution of contract is approximately 3 years.
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