Broader mkt underperforms, bank shares advance, VIX climbs 3.57%

Domestic equity barometers continued to trade with moderate gains in early afternoon trade. The Nifty traded above the 20,750 mark. Bank stocks extended gains for the third consecutive trading session.

At 12:30 AM IST, the barometer index, the S&P BSE Sensex, was up 272.89 points or 0.40% to 69,138.01. The Nifty 50 index added 93.80 points or 0.45% to 20,780.60.

The Sensex clocked an all-time high of 69,381.31 while the Nifty hit record high of 20,849.60 in mid-morning trade. Further, the Nifty Bank index also registered its fresh record high of 47,230.55.

The broader market underperformed the headline indice. The S&P BSE Mid-Cap index declined 0.26% while the S&P BSE Small-Cap index shed 0.05%. The S&P BSE Mid-Cap index and S&P BSE Small-Cap index has hit an all time high of 35,216.47 and 41,317.67.

The market breadth was positive. On the BSE, 1,718 shares rose, and 1,924 shares fell. A total of 152 shares were unchanged.

Economy:

The seasonally adjusted S&P Global India Services Business Activity Index fell to 56.9 in November, one year low from 58.4 in October. Despite falling from October index pointed to a sharp increase in output across the sector.

The increase in Indian services activity extended into November, with cooling price pressures and demand resilience inducing sales growth, latest PMI survey data from S&P Global showed.

Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said, �India�s service sector has lost further growth momentum midway through the third fiscal quarter, but we continue to see robust demand for services fuelling new business intakes and output. The current rates of expansion look very healthy when considering their respective long-run averages and the outlook for business activity remains bright in spite of optimism fading due to rising inflation expectations.�

Meanwhile, the S&P Global India Composite PMI Output Index fell to 57.4 in November as compared with 58.4 in October, indicating substantial pace of expansion.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rallied 3.57% to 13.46. The Nifty 28 December 2023 futures were trading at 20,879.05, at a premium of 98.45 points as compared with the spot at 20,780.60.

The Nifty option chain for the 28 December 2023 expiry showed maximum Call OI of 28.8 lakh contracts at the 21,000 strike price. Maximum Put OI of 39.3 lakh contracts were seen at 20,000 strike price.

Buzzing Index:

The Nifty Bank index advanced 1% to 46,894.35. The index jumped 5.42% in three trading sessions.

IDFC First Bank Ltd (up 2.36%), State Bank of India (up 1.82%), ICICI Bank (up 1.67%), HDFC Bank (up 0.98%), Federal Bank (up 0.62%), Axis Bank (up 0.52%), Bank of Baroda (up 0.5%), Punjab National Bank (up 0.48%) edged higher.

Stocks in Spotlight:

Indian Energy Exchange (IEX) shed 0.03%. IEX informed that it has achieved 8,371 million units (MU) total electricity volume in November 2023, registering an increase of 13% on YoY basis.

Adani Green Energy (AGEL) surged 17.51% after the power generation company raised $1.36 billion from a consortium of eight international banks to boost its construction financing pool to $3 billion.

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