Indian equity benchmark -- Nifty -- ended Tuesday’s trading session on a flat note. Index made a positive start, as investors took some support with the latest payroll data released by the Employees’ Provident Fund Organisation (EPFO) showing that the number of fresh formal jobs increased for the third consecutive month in June to hit a 9-month high, thus signalling a sustained recovery in the labour markets in the first quarter of financial year 2023-24 (FY24). Traders also took a note of a private report that the value of foreign portfolio investors' holdings in the domestic equities reached $626 billion in the three months ended June 2023, which was 20 per cent higher from the year-ago period.
Index continued to trade on a higher note in afternoon session, as traders got some support after Icra Ratings in report stated that India’s economic growth will accelerate to 8.5 per cent in the April-June period of the current fiscal from the 6.1 per cent growth rate witnessed in the preceding January-March quarter. The rating agency attributed the faster growth to a supportive base and also a recovery in the services sector. Sentiments were positive, as the global industry body WFDSA in a report said that India has moved up to 11th position in the ranking of top markets of direct sellers, with retail sales of $3.23 billion (around Rs 26,852 crore) in 2022. However, in the last leg of the trade, index trimmed most of its gains and ended on a flat note with a positive bias.
Traders were seen piling up positions in Metal, FMCG and Media, while selling was witnessed in PSU Bank, Pharma and IT stocks. The top gainers from the F&O segment were Bharat Heavy Electricals, Hindustan Copper and Tata Communications. On the other hand, the top losers were Colgate-Palmolive (India), Sun Tv Network and India Cements. In the index option segment, maximum OI continues to be seen in the 19400 - 19600 calls and 18900 - 19100 puts indicating this is the trading range expectation.
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