Indian equity benchmark -- Nifty -- ended Thursday’s trading session in a positive terrain with marginal gains, supported by strong rally in IT stocks. Index made an optimistic start, as sentiments remained up-beat after the Index of Industrial Production (IIP) recovered to a three-month high of 5.2 per cent in May, despite a high-base effect, due to good performance by manufacturing, mining and electricity sectors. Traders also took note of Union Minister of State for Petroleum and Natural Gas Rameswar Teli’s statement that India is the fastest growing among the major economies of the world and the petroleum and petrochemical sector is playing a pivotal role in this.
In afternoon session, index continued to trade on a higher note and traded near day’s high point. Sentiments remained optimistic, as investment in the domestic capital markets through participatory notes rose to Rs 1.04 lakh crore in May-end, the highest level in over five years, fuelled by the resilience of the Indian economy. This includes the value of P-note investments in Indian equity, debt, and hybrid securities. Adding relief among traders, the Department of Expenditure, Ministry of Finance, has released an amount of Rs 7,532 crore to 22 State Governments for the respective State Disaster Response Funds (SDRF), in the wake of heavy rains across the country. The amount has been released as per the recommendations of the Ministry of Home Affairs. However, in last leg of trade, index cut gains to end marginally higher.
Traders were seen piling up positions in IT, Realty and Financial Services, while selling was witnessed in PSU Bank, Media, and Consumer Durables. The top gainers from the F&O segment were Birlasoft, Info Edge (India) and Tata Consultancy Services. On the other hand, the top losers were Federal Bank, Delta Corp and Manappuram Finance. 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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