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Nifty ends with minor gains ahead of IIP, CPI data

11 Dec 2023 Evaluate

Indian equity benchmark -- Nifty -- ended Monday’s trading session in a positive terrain ahead of Index of Industrial Production (IIP) and Consumer Price Index (CPI) data, which are scheduled to be released on December 12. After making a cautious start, index traded on higher note for the most part of the session, as traders took some support with Chief Economic Advisor V Anantha Nageswaran’s statement that the country’s economic growth can become faster if the much-awaited private capital formation kicks into higher gear. He said that post-COVID financial balance sheets of corporates have been positive. Some support also came as India's foreign exchange reserves increased to $604 billion as on December 1, surpassing the $600 billion mark after a gap of about four months.

However, index witnessed volatility during the session, as traders were cautious after Reserve Bank of India (RBI) in its ‘Inflation expectations survey of households (IESH) November 2023’ showed that households expect some rise in price and inflationary pressures across major product groups for the year ahead. The survey was conducted during November 211, 2023 in 19 major cities, with responses from 6,036 urban households. But, index managed to end with marginal gains, as investors got support after Federation Indian Chambers of Commerce and Industry (Ficci) expects the economy to grow at 7.5 to 8 per cent in the current fiscal and 8 per cent in 2024-25 on the back of strong growth momentum, positive sentiments and rising private investments.

Most of the sectorial indices ended in green except Healthcare and Pharma stocks. The top gainers from the F&O segment were Dixon Technologies (India), Jindal Steel and Power and GMR Airports Infrastructure. On the other hand, the top losers were Dr Reddy's Laboratories, Hindustan Petroleum Corporation and Can Fin Homes. In the index option segment, maximum OI continues to be seen in the 21900 - 22100 calls and 19900 - 20100 puts indicating this is the trading range expectation.

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