Nifty managed to end higher for second consecutive day on Wednesday. Sudden buying in last leg of trade helped market to end in green zone. After making a negative start, index remained lower for the most part of the session, as sentiments got hit after Retail inflation spiked to a 15 month high of 7.44 per cent in July much higher than 4.87 per cent in June as tomatoes, vegetables and other food items turned costlier, overshooting Reserve Bank’s comfort level for the first time in the current fiscal. Traders were cautious, amid a private report stating that Indian state retailers' gasoline and diesel sales fell in the first half of August from the previous month and a year ago, as industrial activity and mobility was hit due to monsoon rains.
Investors overlooked a private report stating that India and the United Arab Emirates have started settling bilateral trade in their local currencies with India's top refiner making payment in rupees for purchase of a million barrels of oil from the Middle Eastern nation. India in July signed an agreement with the UAE allowing it to settle trade in rupees instead of dollars, boosting India's efforts to cut transaction costs by eliminating dollar conversions. In afternoon, market cut most of its losses to trade flat and finally ended Wednesday’s session in green, above 19,450 level.
Most of the sectorial indices ended in green except Bank, Financial Services and Consumer Durables stocks. The top gainers from the F&O segment were Indiabulls Housing Finance, Escorts and Piramal Enterprises. On the other hand, the top losers were Indus Towers, Hindustan Copper and Crompton Greaves Consumer Electricls. 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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