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Nifty ends with minor gains in volatile session

05 Jul 2023 Evaluate

Indian equity benchmark -- Nifty -- ended Wednesday’s trading session in a positive terrain with marginal gains. After making a cautious start, index remained volatile, as some concern came with Icra Ratings’ report that states continue to pay higher interest rates to investors for their debt, with the latest weighted average cost rising to 7.46 per cent at Tuesday's auctions wherein nine states raised Rs 16,200 crore. However, downside remained capped as some support came with S&P Global Ratings analyst Neel Gopalakrishnan’s statement that the companies tracked by the global rating agency S&P in India are in good credit shape due to strong underlying growth and accommodative balance sheets.

In afternoon session, index traded below its neutral line. Traders got anxious, as India’s services sector activity eased to a three-month low in June. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index fell at 58.5 in June from 61.2 in May. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- eased to 59.4 in June as against 61.6 in May. At the end, index staged recovery and managed to keep its head above the neutral line.

Traders were seen piling up positions in FMCG, Auto and Media, while selling was witnessed in Financial Services, Bank, and Private Bank. The top gainers from the F&O segment were Bharat Heavy Electricals, Samvardhana Motherson International and Bajaj Auto. On the other hand, the top losers were Dixon Technologies (India), Can Fin Homes and HDFC Bank. In the index option segment, maximum OI continues to be seen in the 19400 - 19600 calls and 18900 - 19100 puts indicating this is the trading range expectation.

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