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Nifty ends higher for third consecutive day

15 Feb 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Thursday’s trading session on higher note, led by gains in PSU Bank, Oil & Gas and Auto stocks. After making slightly positive start, soon index turned volatile amid foreign fund outflows. Foreign institutional investors (FIIs) net sold shares worth Rs 3,929.60 crore on February 14, provisional data from the NSE showed. However, index managed to keep its head above neutral line for the most part of the day, as sentiments remained positive with the Reserve Bank of India (RBI) data stating that India’s services trade surplus shot up to a record $44.9 billion in the October-December quarter (third quarter, or Q3) of 2023-24 (FY24), growing 16 per cent year-on-year, showing resilience amid strong global headwinds. This is likely to reduce the current account deficit (CAD) in Q3.

In afternoon session, index extended its gains and touched day’s high point, as traders took some support with the private report stating that India's merchandise trade deficit narrowed to $17.49 billion in January as exports edged up by 3.1 percent year-on-year despite the ongoing crisis in the Red Sea disrupting trade as commercial vessels traversing through the Suez Canal face attacks from Yemen-backed Houthi rebels. The merchandise trade deficit stood at $19.80 billion in December 2023. Finally, index settled above 21900 mark with moderate gains.

Traders were seen piling up positions in PSU Bank, OIL & GAS and AUTO stocks, while selling was witnessed in FMCG, Healthcare and Metal. The top gainers from the F&O segment were Mahindra and Mahindra, Polycab India and Hindustan Petroleum Corporation. On the other hand, the top losers were Zee Entertainment Enterprises, Vedanta and Muthoot Finance. 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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