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Nifty extends winning streak for fourth consecutive day

06 Sep 2023 Evaluate

Indian equity benchmark -- Nifty -- ended Wednesday’s trading session on a higher note, ahead of weekly F&O expiry. After making a slightly positive start, soon index turned volatile, as traders were cautious with S&P Global Ratings Economist (Asia Pacific) Vishrut Rana’s statement that inflation in India is likely to remain elevated in the near terms but government policies will prevent it from rising further. In July, the consumer price index based retail inflation spiked to 15-month high of 7.44 per cent in July, with specific food commodities mainly driving the increase.  

In afternoon session, index traded in a red terrain, as sentiments remained downbeat after renewed risk aversion gripped world markets and the dollar strengthened, as weak economic data from China and Eurozone revived concerns about slowing global growth. Besides, a slowdown in buying activity by foreign portfolio investors also weighed on domestic sentiments. Provisional data from the National Stock Exchange (NSE) showed foreign institutional investors (FII) sold shares worth Rs 1,725.11 crore on September 5. However, in last leg of trade, index staged recovery to settle above the neutral line.

Traders were seen piling up positions in FMCG, Healthcare and Pharma stocks, while selling was witnessed in PSU Bank, Realty and Metal. The top gainers from the F&O segment were Vodafone Idea, Petronet LNG and Tata Consumer Products. On the other hand, the top losers were Hindustan Copper, Dixon Technologies (India) and Manappuram Finance. In the index option segment, maximum OI continues to be seen in the 19900 - 20100 calls and 18900 - 19100 puts indicating this is the trading range expectation.

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