Indian equity benchmark -- Nifty -- ended Thursday’s trading session in a negative terrain, dragged by losses in Banking and FMCG stocks. Index made a negative start, as traders were cautious with a private report stating that the rate of price rise for the consumer basket likely breached the central bank's upper tolerance level of 6 per cent in July. Traders overlooked exchange data showing that Foreign Institutional Investors (FIIs) turned buyers on Wednesday after continuous offloading of equities for the past several days. They bought equities worth Rs 644.11 crore on Wednesday.
In late morning session, index slipped near day’s low point and further traded on a lower note till the end, as the RBI’s Monetary Policy Committee decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent. Besides, it has projected real gross domestic product (GDP) growth for 2023-24 at 6.5 per cent with Q1 at 8.0 per cent; Q2 at 6.5 per cent; Q3 at 6.0 per cent; and Q4 at 5.7 per cent, with risks broadly balanced. Real GDP growth for Q1:2024-25 is projected at 6.6 per cent. Further, the RBI has projected July-September quarter retail inflation at 6.2 per cent. This has been driven by a spike in prices of certain vegetables; tomato prices skyrocketed to Rs 200 a kilo. Prices of pulses have also increased. Finally, index ended with losses of 89.45 points and settled below 19550 mark.
Most of the sectorial indices ended in green except Media, Metal and Oil & Gas stocks Index. The top gainers from the F&O segment were Zee Entertainment Enterprises, Max Financial Services and Trent. On the other hand, the top losers were Granules India, Mahanagar Gas and Bata India. 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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