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Nifty ends in negative terrain for second straight day

24 Jul 2023 Evaluate

Indian equity benchmark -- Nifty – ended Monday’s trading session on lower note, dragged by losses in FMCG and metal stocks. After making a cautious start, soon index traded on flat note with positive bias, as the Reserve Bank of India said India’s forex reserves have swelled by $12.743 billion to $609.022 billion in the week ended July 14, making it one of the strongest weekly surges in the kitty in recent times. Besides, investors got some support with Union Minister of State for Chemicals and Fertilizers Bhagwanth Khuba's statement that unemployment rate in the country is the lowest among the developing countries and Pradhan Mantri Mudra Yojana (PMMY) has helped in achieving this self-sustaining employment. 

However, in afternoon session, index cut gains and turned volatile, as sentiments got hit after private report stated that consumer price inflation is expected to overshoot the Reserve Bank’s tolerance mark of 6 per cent again in July and August due to the sky high vegetable prices. Besides, foreign fund outflows also dented sentiments in the markets. Provisional data from the NSE showed that foreign institutional investors (FII) sold shares worth Rs 1,998.77 crore on July 21. At the end, index slipped into deep red and ended with losses of 72.65 points, amid a private report stating that India's economy will grow at a solid pace for the rest of this fiscal year and next but well below its potential rate and the employment situation will improve only slightly.

Traders were seen piling up positions in Healthcare, Pharma and Realty stocks, while selling was witnessed in FMCG, Metal, and Bank. The top gainers from the F&O segment were REC, Can Fin Homes and GMR Airports Infrastructure. On the other hand, the top losers were United Spirits, Biocon and Indraprastha Gas. In the index option segment, maximum OI continues to be seen in the 19700 - 19900 calls and 18900 - 19100 puts indicating this is the trading range expectation.

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