The benchmark indices pared early losses and shut shop on a flat note on Monday. The markets were trading deep in the red during the initial hour of trade on apprehensions of a double-digit inflation figure. But the indices remained quiet for a while after the inflation data was announced, which stood at 9.89% for February against 8.56% in January. The rate hikes during RBI’s upcoming monetary policy review in April is almost certain, albeit the magnitude of such a hike remains a subject for debate.
On the other hand, some of the major blue-chip scrips paid staggering advance taxes for the fourth quarter of the current financial year. Index heavyweights RIL (Reliance Industries) and Infosys gained strength on these robust advance tax figures and boosted the benchmark indices to make a smart recovery during afternoon trade on Monday. However, a sluggish opening in major European markets failed to provide the much-needed momentum for the broader indices to move up in the green. IT and TECk segments remained major gainers for the day whereas stocks from PSU, CG and Banking sectors put maximum pressure on the local equity markets. The India VIX (Volatility Index) up by 2.69% to 20.26 on Monday. The high PCR (Put-Call Ratio) of 1.72 also connotes to the bearish sentiment in the markets.
Finally, the 50-share S&P CNX Nifty settled at 5128.90, down by 8.10 points or 0.16%.
Nifty March futures saw an addition of 3.26% or 0.81 million (mn) units, taking the total outstanding open interest (OI) to 25.97 mn units. For Nifty calls, 5100 strike price (SP) from the March series was the most active call with a contraction of 0.55 mn units or 7.44%.
Among Nifty puts, 5100 SP from the March month expiry was the most active put with an addition of 0.65 mn units or 9.95%.