Sensex slides 386 pts, VIX spurts 5.70%, PSU banks decline

The key equity barometers traded with modest losses in early afternoon trade. The Nifty traded a tad below the 21,600 level. PSU Bank shares extended losses for the second consecutive trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 385.73 points or 0.54 % to 71,640.42. The Nifty 50 index lost 113.80 points or 0.52% to 21,597.

In the broader market, the S&P BSE Mid-Cap index decreased 0.52% and the S&P BSE Small-Cap index shed 0.13%.

The market breadth was negative. On the BSE, 1,912 shares rose and 1,965 shares fell. A total of 116 shares were unchanged.

Economy:

India�s foreign exchange reserves rose for a seventh straight week and stood at a near 22-month high of $623.20 billion as of December 29, according to the latest RBI data. The reserves rose by $2.76 billion for the reported week after increasing by a total of $30.12 billion in the prior six weeks.

Gold reserves were up by $853 million to $48.328 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were up by $38 million to $18.365 billion, the apex bank said.

India�s reserve position with the IMF was down by $2 million to $4.892 billion in the reporting week.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 5.70% to 13.35. The Nifty 25 January 2024 futures were trading at 21,645.60, at a premium of 48.6 points as compared with the spot at 21,597.

The Nifty option chain for the 25 January 2024 expiry showed maximum Call OI of 28.6 lakh contracts at the 22,000 strike price. Maximum Put OI of 39.8 lakh contracts were seen at 21,000 strike price.

Buzzing Index:

The Nifty PSU Bank index declined 1.63% to 5,743.55. The index declined 2% in two trading sessions.

Bank of Baroda (down 3.88%), Central Bank of India (down 2.31%), Punjab National Bank (down 2.06%), Indian Overseas Bank (down 1.82%), UCO Bank (down 1.81%), Punjab & Sind Bank (down 1.69%), Indian Bank (down 1.67%), Canara Bank (down 1.46%), State Bank of India (down 1.32%) and Bank of Maharashtra (down 1.07%) edged lower.

Stocks in Spotlight: Narayana Hrudayalaya rose 1% after the company announced that its wholly owned subsidiary Narayana Health Insurance has received license from IRDAI to exclusively carry on health insurance business.

FSN E-Commerce Ventures (Nykaa) advanced 3.06% after the company announced that it has witnessed consistent growth across its three business verticals.

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