Key benchmark indices trimmed losses in early afternoon trade. Rising coronavirus cases put pressure on global equity markets. At 12:22 IST, the barometer index, the S&P BSE Sensex, was down 381.58 points or 1.08% at 34,789.69. The Nifty 50 index fell 121.65 points or 1.17% at 10,261.35.
In the broader market, the S&P BSE Mid-Cap index slipped 1.49% while the S&P BSE Small-Cap index lost 1.41%. Both these indices underperformed the Sensex.
The market breadth was weak. On the BSE, 930 shares rose and 1656 shares fell. A total of 116 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 753.18 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,304.18 crore in the Indian equity market on 26 June, provisional data showed.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, surged 4.49% to 30.02. The Nifty July 2020 futures were trading at 10,192, at a discount of 69.35 points compared with the spot at 10,261.35.
On the weekly index options front, the Nifty option chain for 2 July 2020 expiry showed maximum Call Open Interest (OI) of 32.05 lakh contracts at the 10,500 strike price. Maximum Put OI of 21.91 lakh contracts was seen at 10,000 strike price.
On the monthly index options front, the Nifty option chain for 30 July 2020 expiry showed maximum Call OI of 20.10 lakh contracts at the 11,500 strike price. Maximum Put OI of 22.69 lakh contracts was seen at 9,000 strike price.
The Nifty PSU Bank index fell 3.48% to 1,450.85. The index rose 0.94% on Friday.
Among the index constituents, UCO Bank (down 6.81%), Bank of Baroda (down 5.01%), Union Bank of India (down 3.99%), Canara Bank (down 3.97%), Indian Bank (down 3.76%), Jammu and Kashmir Bank (down 3.55%), Punjab National Bank (down 3.55%), Bank of Maharashtra (down 2.61%), Bank of India (down 3.02%), SBI (down 2.9%) and Indian Overseas Bank (down 1.53%) edged lower while Central Bank of India advanced 3.79%.
Housing and Urban Development Corporation (HUDCO) hit an upper circuit of 20% at Rs 33.40 after consolidated net profit surged 86.6% to Rs 440.91 crore on 27.3% rise in total income to Rs 1900.40 crore in Q4 March 2020 over Q4 March 2019.
HUDCO's yield on loan improved to 10.34% in Q4 March 2020 from 10.15% in Q4 March 2019. Net interest margin declined to 3.65% in Q4 March 2020 from 4.52% in Q4 March 2019. HUDCO's interest spread also declined to 2.54% in quarter ending March 2020 as compared to 3.14% reported in the same period last year.
Sun TV Network slumped 4.74% to Rs 401.30 after consolidated net profit fell 16% to Rs Rs 245.23 crore on 17.4% fall in net sales to Rs 758.13 crore in Q4 March 2020 over Q4 March 2019.
Oil India shed 0.48% to Rs 93.95. The company's consolidated net profit stood at Rs 1,597.40 crore in Q4 March 2020 compared with net loss of Rs 70.59 crore in Q4 March 2019. Net sales slipped 15.8% to Rs 2,607.38 crore in Q4 FY20 from Rs 3,097.26 crore in Q4 FY19.
Crude oil price realization decreased 13.23% to Rs 3,776.79 per barrel in Q4 FY20 compared with Rs 4,352.84 per barrel in Q4 FY19. The adverse imapact was on account of fall in international crude oil prices because of COVID-19 and collapse in understanding between OPEC and Russia on continued production cuts.
Meanwhile, On 27 May 2020, one of the gas producing well in Baghjan field in Assam suddenly became very active while work over operation was on. The effort to control the blowout is going on. Teams of OIL, ONGC and international expert are working to control the well at the earliest. Due to blow out, there is production loss of about 80,000 SCMD of natural gas which is only about 1% of OIL's daily natural gas production. The National Green Tribunal (NGT) has issued an order constituting a ten-member committee for investigation. NGT has also ordered OIL to deposit Rs 25 crore as an interim money with DC, Tinsukia.