Indian equity benchmark -- Nifty -- ended Monday’s trading session in a positive terrain, led by gains in Reliance Industries and Tata Steel stocks. Index made decent start and traded on a higher note, as investors took encouragement with the Confederation of Indian Industry-Business Confidence Index (CII-BCI) survey showing that business confidence improved in the first quarter of this fiscal on the back of strong fundamentals, driven by healthy domestic demand and moderating oil and commodity prices. Some support also came in as the Reserve Bank of India said India’s foreign exchange reserves rose by $1.853 billion to $595.051 billion in the week ended on June 30.
Index cut most of its gains in late morning session, but soon added gains again, as sentiments remained optimistic with the India Meteorological Department (IMD) stating that the bountiful rains in many parts of India in the first eight days of July have bridged the rainfall deficit for the entire country. The cumulative rainfall in the monsoon season has reached 243.2 mm, which is 2 per cent above the normal of 239.1 mm. In last leg of trade, index failed to hold gains and ended marginally higher amid a private report stating that funding in Indian startups fell by 36 per cent in January-June to $3.8 billion, the lowest half-yearly number in the last four years, as investors are taking longer time in due diligence of every aspect of business.
Most of the sectorial indices ended in red except Metal and Oil & Gas. The top gainers from the F&O segment were ICICI Prudential Life Insurance Company, Steel Authority of India and Reliance Industries. On the other hand, the top losers were Balkrishna Industries, Deepak Nitrite and IndiaMART InterMESH. 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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