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Nifty ends in positive terrain for second consecutive day

07 Aug 2023 Evaluate

Indian equity benchmark -- Nifty -- ended Monday’s trading session on higher note, ahead of U.S. inflation data and the RBI's monetary policy decision, on August 10, 2023. Index made a positive start, as market participant took support with data from the National Securities Depository (NSDL) showing that foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the fifth straight month. FPIs bought Indian stocks worth Rs 7,936 crore, Rs 11,631 crore, Rs 43,838 crore, Rs 47,148 crore, and Rs 46,618 crore in March, April, May, June, and July, respectively. Investors took note of report that the number of income tax returns filed between April-June 2023-24 nearly doubled to over 1.36 crore over the previous year. As per the comparative statistics of ITR filing available on the I-T e-filing portal, over 70.34 lakh tax returns were filed in April-June 2022-23.

Index extended its gains in afternoon session, as some support came after K V Kamath, chairman of the National Bank for Financing Infrastructure and Development (NaBFID), expressed his confidence in India’s potential to achieve the $5-trillion economy target within 18 months. Besides, Reserve Bank is likely to continue with the pause on the key interest rate at its upcoming monetary policy review, as concerns on the inflation front and keeping the borrowing cost stable to maintain the economic growth momentum persist. Finally, index ended with gains of 80.30 points.

Most of the sectorial indices ended in green except PSU Bank, MEDIA and Bank. The top gainers from the F&O segment were REC, Divi's Laboratories and Mahindra and Mahindra. On the other hand, the top losers were Aditya Birla Fashion and Retail, Gujarat Narmada Valley Fertilizers & Chemicals and Balkrishna Industries. In the index option segment, maximum OI continues to be seen in the 19900 - 20100 calls and 19600 - 19800 puts indicating this is the trading range expectation.

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