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Nifty witnesses sell off; plunges over 1%

21 Jul 2023 Evaluate

Indian equity benchmark -- Nifty – ended Friday’s trading session in deep red dragged by losses in IT and FMCG stocks. Index made a negative start, as sentiments remained downbeat with private report stating that private equity and venture capital (PE/VC) funds' investments into Indian entities declined by nearly a fourth to $27.5 billion in January-June 2023 against the year-ago period. Traders overlooked S&P Global Ratings’ report in which it has projected Indian banking sector's weak loans will decline to 3-3.5 per cent of gross advances by March 31, 2025 as structural improvements and good economic prospects would support the resilience of financial institutions. In its mid-year global bank outlook, S&P said India's economic growth prospects should remain strong over the medium term, with GDP expanding 6-7.1 per cent annually in fiscal years 2024-2026.

In afternoon session, index continued to trade on lower note, as traders remained worried after retail inflation for farm workers and rural labourers inched up marginally to 6.31 per cent and 6.16 per cent, respectively in June as compared to 5.99 per cent and 5.84 per cent in May this year. The All-India Consumer Price Index Number for Agricultural Labourers and Rural Labourers for June 2023 increased by 10 points each to 1,196 points and 1,207 points, respectively. CPI-AL and CPI-RL were 1,186 points and 1,197 points in May 2023. Finally, index ended with over a percent cut.

Most of the sectorial indices ended in red except Media, PSU Bank and Auto. The top gainers from the F&O segment were IndiaMART InterMESH, United Spirits and Atul. On the other hand, the top losers were Infosys, Persistent Systems and Dalmia Bharat. In the index option segment, maximum OI continues to be seen in the 19800 - 20000 calls and 18900 - 19100 puts indicating this is the trading range expectation.

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