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Nifty ends flat in volatile session on Tuesday

25 Jul 2023 Evaluate

Indian equity benchmark -- Nifty – ended Tuesday’s trading session in positive terrain with marginal gains. After making a positive start, soon index turned volatile, as market participants were cautious with a private report that the recent rise in inflation has prompted Indian investors to push back rate cut expectations by at least a quarter to the middle of 2024, with a sustained rise in prices likely to prompt a further repricing. Some concern also came with a private report stating that Indian fintech start-ups raised a total of $1.4 billion in the first half (H1) of 2023, a massive year-on-year (YoY) drop of 67 per cent from $4.3 billion raised in the same period last year. 

In afternoon session, volatility continued over the street, as traders remained on sidelines ahead of central bank meetings. The Federal Reserve's interest-rate decision is due on Wednesday, followed by the European Central Bank (ECB) on Thursday and the Bank of Japan (BOJ) on Friday. The Federal Reserve is widely expected to lift interest rates, but the central bank's statements will be scrutinized for clues on possible additional increases later in 2023. At the end, index managed to keep its head above neutral line, as investors got some relief, amid reports that foreign Portfolio Investors (FPIs) have pumped Rs 153,539 crore in India so far in 2023-24 as Indian equity markets continue to attract FPIs.

Traders were seen piling up positions in Metal, Media and Auto stocks, while selling was witnessed in PSU BANK, FMCG, and Realty. The top gainers from the F&O segment were TVS Motor Company, Zee Entertainment Enterprises and Jindal Steel and Power. On the other hand, the top losers were Can Fin Homes, Asian Paints and L&T Finance Holdings. 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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