Indian equity benchmark -- Nifty – ended Thursday’s trading session in a negative terrain, ahead of the Goods and Services Tax Council meeting to be held on August 02. The agenda is expected to include a final decision on the proposed 28 per cent GST on online gaming, casinos and horse racing. Index made a positive start, as investors got some support with a private report stating that private sector banks reported a robust 37.0 per cent year-on-year (YOY) growth in net profit to Rs 37,683 crore in the first quarter ended June 2023 on healthy growth in net interest income (NII) and strong credit offtake. Meanwhile, Reserve Bank of India (RBI) has permitted 20 banks operating in the country to open 92 Special Rupee Vostro Accounts (SRVAs) of partner banks from 22 countries including Bangladesh, Belarus, Botswana, Fiji, Germany, Guyana and Israel, as part of efforts to promote bilateral trade in local currencies.
However, index erased all of its initial gains in afternoon session and traded in negative terrain till the end, as sentiments remained downbeat with a private report stating that with the world facing growing economic instability and political tensions, volatility in geoeconomic and geopolitical relations between major economies is likely to result in global upheavals over the next six months. Further, some cautiousness also prevailed in market as the U.S. Federal Reserve announced a 25-bps rate hike and left the door open for future hikes. But, in last leg of trade, index trimmed some of its losses and ended with over half a percent cut.
Traders were seen piling up positions in Pharma, Healthcare Index and Realty stocks, while selling was witnessed in Auto, Private Bank, and Oil & Gas. The top gainers from the F&O segment were Cipla, REC and Birlasoft. On the other hand, the top losers were Mahindra And Mahindra, Tech Mahindra and Hindustan Petroleum Corporation. In the index option segment, maximum OI continues to be seen in the 18900 - 19100 calls and 19600 - 19800 puts indicating this is the trading range expectation.
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