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Nifty ends in negative terrain for third consecutive day

18 May 2023 Evaluate

Indian equity benchmark -- Nifty -- ended Thursday’s trading session on a lower note amid profit booking. Index made a powerful start, as sentiments were positive with Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh’s statement that the production-linked incentive (PLI) scheme is showing significant dividends across many sectors. He said the benefits under the PLI scheme are yielding positive results and thus, the government is considering extending the benefits of the PLI scheme to some labour-intensive sectors.

In afternoon session, index trimmed some of its gains and traded near neutral line, as some concern came with a private report showing that the value of foreign portfolio investment (FPI) in Indian equities was at $542 billion in the March quarter of 2023, a decline of 11 per cent from the preceding year, largely due to the exodus of foreign money from the domestic market. In comparison, the value of FPI in Indian equities was $612 billion in the January-March quarter of 2022. However, in last leg of trade, index erased all of its gains and ended in red terrain.

Traders were seen piling up positions in Financial Services, Private Bank and Bank, while selling was witnessed in Realty, PSU Bank and Pharma. The top gainers from the F&O segment were Cholamandalam Investment and Finance Company, AU Small Finance Bank and Syngene International. On the other hand, the top losers were Gujarat Narmada Valley Fertilizers & Chemicals, Godrej Properties and Metropolis Healthcare. In the index option segment, maximum OI continues to be seen in the 18100 -18300 calls and 17900 -18100 puts indicating this is the trading range expectation.

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