Indian equity benchmark -- Nifty -- ended Thursday’s trading session in negative terrain on weekly F&O expiry. Index made a lower start and traded below its neutral line till the end, amid foreign fund outflows. Provisional data from the NSE showed that foreign institutional investors (FIIs) sold shares worth Rs 10,578.13 crore on January 17. Traders overlooked RBI Governor Shaktikanta Das’ statement that consumer price index-based inflation, the main yardstick for the Reserve Bank of India’s policy making, is likely to average 4.5 per cent in the next financial year and gross domestic product (GDP) growth is likely to stay above 7 per cent.
In afternoon session, index trimmed some of its losses but continued to trade on a lower note, amid signs that global central banks including the Federal Reserve and the European Central Bank will not rush to lower interest rates as previously anticipated. Traders were cautious as external affairs minister S Jaishankar said that Houthi attack in Red Sea would hit India’s energy and economy. He stressed that the issue should be speedily addressed. Finally, index ended with over half-percent cut and settled below 21,500 mark.
