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Nifty ends in negative terrain for second consecutive day

28 Jul 2023 Evaluate

Indian equity benchmark -- Nifty – ended Friday’s trading session on lower note, dragged by losses in IT and Bank Stocks. Index made a negative start, as sentiments were cautious after strong economic data from the U.S. reignited rate concerns. The Commerce Department said real gross domestic product surged by 2.4 percent in the second quarter after jumping by 2.0 percent in the first quarter. Street had expected the pace of GDP growth to slow to 1.8 percent. Further, depreciation in Indian rupee against dollar too weighed down sentiments. 

Index continued to trade in red terrain in afternoon session, as market participants got cautious with private report stating that the changing inflation dynamics mean that the RBI (Reserve Bank of India) will likely raise its 2023-24 inflation forecast at the August 10 policy meeting, where it expects a hawkish hold. However, index trimmed most of its losses in last leg of trade, as investors took some support with the Union minister Rajeev Chandrasekhar’s statement that India is on track to becoming a key player in the global semiconductor supply chain in the next decade with $ 10 billion of incentives and assistance provided to encourage local chip manufacturing. But, index unable to surpass neutral line and settled below 19,650 mark.

Traders were seen piling up positions in Media, Metal and FMCG stocks, while selling was witnessed in IT, Bank, and Financial Services. The top gainers from the F&O segment were Indiabulls Housing Finance, Tata Power Company and Tata Chemicals. On the other hand, the top losers were Dr. Lal PathLabs, Hindustan Petroleum Corporation and Mahindra & Mahindra Financial Services. 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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