Mid Session

The headline equity indices continued to trade with modest losses in the early afternoon trade. The Nifty hovered near 15,650 mark after hitting the day's low of 15,511.05 in the morning trade. Oil & gas shares dropped for second consecutive session. Index heavyweight Reliance Industries (RIL) dropped over 6% after the government on Friday announced an increase in taxes on the export of petrol, diesel, and aviation turbine fuel (ATF).

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 408.91 points or 0.77% to 52,610.03. The Nifty 50 index fell 137.20 points or 0.87% to 15,643.05.

In the broader market, the S&P BSE Mid-Cap index shed 0.03% while the S&P BSE Small-Cap index lost 0.42%.

The market breadth was negative. On the BSE, 1,350 shares rose and 1,741 shares fell. A total of 228 shares were unchanged.

Economy:

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) stood at 53.9 in June, lower than 54.6 in May. The latest reading showed the weakest pace of growth since last September.

Softer increases in production, factory orders, stocks of purchases and employment all dragged down the PMI in June, alongside an improvement in supplier performance which is inverted before entering the calculation.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 1.37% to 21.54. The Nifty 28 July 2022 futures were trading at 15,623, at a discount of 20.05 points as compared with the spot at 15,643.05.

The Nifty option chain for the 28 July 2022 expiry showed maximum Call OI of 21.4 lakh contracts at the 17,000 strike price. Maximum Put OI of 29.6 lakh contracts was seen at 15,000 strike price.

Buzzing Index:

The Nifty Oil & Gas index slipped 3.79% to 7,312.55. The index declined 4.04% in two sessions.

ONGC (down 11.58%), Oil India (down 7.83%), Reliance Industries (down 6.13%), GAIL (India) (down 2.33%), Indian Oil Corporation (down 0.74%), Indraprastha Gas (down 0.38%), Petronet LNG (down 0.35%) and Aegis Logistics (down 0.1%) slumped.

On the other hand, Hindustan Petroleum Corporation (up 2.83%) ,Bharat Petroleum Corporation (up 1.2%) and Gujarat State Petronet (up 0.48%) edged higher.

The government on Friday raised export duty on diesel by Rs 13 per litre and that on petrol by Rs 6 per litre. The export duty on ATF has been raised by Re 1 per litre. The increase in taxes in aimed to increase the domestic availability of fuel. However, the increase in taxes in fuel will not impact the domestic prices, the Ministry of Finance has said.

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