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Nifty turns positive on Tuesday; settles above 21700 mark

13 Feb 2024 Evaluate

Indian equity benchmark -- Nifty -- ended near day’s high point on Tuesday amid heavy buying in ICICI Bank, Reliance Industries and Axis Bank stocks. Despite making cautious start, soon index entered into green and traded with traction, as investors took some support after Ministry of Statistics and Programme Implementation data showed that India's headline retail inflation rate decelerated to a three-month low of 5.10 percent in January due to easing food prices. Foreign fund inflows also supported domestic sentiments. Foreign institutional investors (FIIs) net bought shares worth Rs 126.60 crore on February 12, provisional data from the NSE showed.  

However, in afternoon session, index trimmed some of its initial gains, but soon regained traction, as some support came in with Reserve Bank Governor Shaktikanta Das’ statement that lower government borrowings than the market estimates will free more capital for the private sector resulting in easing of inflation and bolstering growth. Sentiments remained up-beat as the Periodic Labour Force Survey (PLFS) data, released by the National Statistical Office showed that the jobless rate in urban India marginally declined further in Q3 (October-December) of FY24 to 6.5 per cent from 6.6 per cent in the preceding quarter, thus reflecting continued improvement in the labour markets. Finally, index ended with over half-percent gains and settled near day’s high point. 

Most of the sectorial indices ended in green except Media and Metal stocks. The top gainers from the F&O segment were Bosch, Oracle Financial Services Software and GMR Airports Infrastructure. On the other hand, the top losers were Hindalco Industries, Steel Authority of India and Grasim Industries. In the index option segment, maximum OI continues to be seen in the 22900 - 23100 calls and 20900 - 21100 puts indicating this is the trading range expectation.

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