Indian equity benchmark -- Nifty -- ended Friday’s trading session on a lower note, ahead of Consumer Price Index (CPI) data scheduled to be released on August 14, 2023. After making a slightly positive start, soon index slipped into red terrain, as traders were cautious with private report stating that India's headline retail inflation is expected to have crashed past the upper bound of the Reserve Bank of India's (RBI) 2-6 percent tolerance band in July on its way to a nine-month high due to a surge in vegetable prices. Traders also took a note of report stating that tagging a genuine exporter as 'risky' will hurt India's exports and an inter-ministerial committee comprising representatives from finance and commerce ministries is required to consider all aspects before branding them under this category.
In afternoon session, index continued to trade on a lower note, as sentiments remained downbeat after the Reserve Bank of India (RBI) in its ‘July 2023 round of its bi-monthly consumer confidence survey (CCS)’ stated that after persistent recovery for almost two years, consumer confidence for current period, as reflected in the current situation index (CSI), stood a shade lower than that witnessed in the previous survey round; improvement in respondents’ sentiment on income and spending was offset by somewhat higher pessimism on general economic and employment situation. In last leg of trade, index extended its losses and ended near day’s low point.
Most of the sectorial indices ended in red except PSU Bank and consumer durables stocks. The top gainers from the F&O segment were Hindustan Copper, India Cements and REC. On the other hand, the top losers were Apollo Tyres, Alkem Laboratories and Info Edge (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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