Indian equity benchmark -- Nifty -- ended Friday’s trading session in a negative terrain due to selling pressure in IT, FMCG and PSU Bank stocks. After making slightly positive start, soon index turned volatile but managed to keep its head above neutral line for the most part of the first half, as traders took some support with PHDCCI's report stating that measures like comprehensive trade pacts, reduction in cost of capital, power, and land reforms would help boost India's exports of goods and services to $2 trillion by 2030. Besides, Rohit Kumar Singh, secretary, department of consumer affairs said the government is set to take a slew of measures to contain the stubborn retail food inflation, including through intervention in pulses markets.
However, index traded below its neutral line in afternoon session. Traders took a note of Finance Minister Nirmala Sitharaman’s statement that NBFCs and small finance banks need to remain cautious while lending as suggested by the Reserve Bank. She said as a measure of caution the RBI has also alerted small finance banks, NBFCs to be careful that they don't go too far too soon and face any downside risks later. Finally, index ended in a negative terrain with minor cut.
Traders were seen piling up positions in Pharma, Metal and Healthcare stocks, while selling was witnessed in IT, FMCG and PSU Bank. The top gainers from the F&O segment were Bharat Heavy Electricals, GMR Airports Infrastructure and Hindustan Aeronautics. On the other hand, the top losers were Mahindra & Mahindra Financial Services, Mphasis and Manappuram Finance. In the index option segment, maximum OI continues to be seen in the 19800 - 20000 calls and 19700 - 19900 puts indicating this is the trading range expectation.
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