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Nifty extends losses for third consecutive day

21 Sep 2023 Evaluate

Indian equity benchmark -- Nifty -- ended Thursday’s trading session on a lower note, dragged by losses in Bank, Auto and Finance stocks. Index made a negative start, as investors were concerned after the Federal Reserve said it expects interest rates to remain higher for longer. The forecast for rates at the end of 2024 was raised to 5.1 percent from 4.6 percent in June, while the outlook for rates at the end of 2025 was increased to 3.9 percent from 3.4 percent. Besides, traders were concerned as the Asian Development Bank (ADB) marginally lowered India's growth forecast to 6.3 per cent for the current financial year from its earlier projection of 6.4 per cent on account of slowing exports and the likely impact of erratic rainfall on agriculture output. 

In afternoon session, index extended its losses and traded near day’s low point, as sentiments remained downbeat after the Reserve Bank of India (RBI) recently released data on household financial savings which created a stir in the markets. The data showed that household financial savings were at 5.1 percent of GDP, almost a 40-year low. Adding more worries, another private report stated that with crude oil hovering near $94 a barrel, India, the world’s third biggest importer, is confronted with the return of a long-feared spectre: the twin deficit challenge. Besides, escalating diplomatic tensions between India and Canada also dampened sentiment. Finally, index ended in a negative terrain with losses of 159.05 points.

Most of the sectorial indices ended in red except Media stocks. The top gainers from the F&O segment were Multi Commodity Exchange of India, Hindustan Petroleum Corporation and REC. On the other hand, the top losers were Indiabulls Housing Finance, Balrampur Chini Mills and ICICI Prudential Life Insurance Company. 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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