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Last hour buying helps Nifty to end near day’s high point

24 Jan 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Wednesday’s trading session on a higher note led by buying in heavyweight stocks across all sectors. After making a negative start, soon index turned positive and traded above neutral line, as sentiments were positive with data released by the Central Board of Direct Taxes showing that the government’s direct tax-to-GDP ratio stood at a 23-year high of 6.11% in FY23. The Centre’s direct tax collections rose 17.8% year-on-year at Rs 16.6 trillion in FY23. Corporate tax collections during the year stood at Rs 8.26 trillion, up 16% on year, and income tax collections stood at Rs 8.33 trillion, 19.6% higher on year.

However, in early afternoon session, index cut its gains, but soon regained traction, as traders got some encouragement with a private report stating that India will remain the fastest-growing major economy this year and next, boosted by continued strong government spending. It said inflation was unlikely to surge again. Meanwhile, India’s business activity expanded at the fastest pace in four months in January on stronger demand. HSBC’s flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 61.0 this month, its highest since September, from December’s final reading of 58.5. In last leg of trade, index magnified its gains to end near day’s high point.

Most of the sectorial indices ended in green except Private Bank stocks. The top gainers from the F&O segment were REC, National Aluminium Company and Power Finance Corporation. On the other hand, the top losers were Oberoi Realty, ICICI Bank and Axis Bank. In the index option segment, maximum OI continues to be seen in the 21900 - 22100 calls and 20900 - 21100 puts indicating this is the trading range expectation.

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