Indian equity benchmark -- Nifty -- ended volatile session in a positive terrain on February F&O expiry. After making slightly negative start, index turned volatile, as traders continued to be cautious ahead of the release of key U.S. inflation data later in the day. The inflation data is likely to have a notable impact on the outlook for interest rates, as US Fed officials have said they need greater confidence that inflation is slowing before cutting rates. Adding to the pessimism, the provisional data from the NSE showed foreign institutional investors (FIIs) net sold shares worth Rs 1,879.23 crore on February 28, 2024.
In afternoon session, index altered between red and green, as traders remained cautious with Department for Promotion of Industry and Internal Trade’s (DPIIT) latest data showing that foreign direct investment (FDI) inflows in India declined 13 per cent to $32.03 billion in April-December 2023, dragged down by lower infusion in computer hardware and software, telecom, auto, and pharma sectors. FDI inflows stood at $36.74 billion during the corresponding nine months of the preceding fiscal. In last leg of trade, index managed to end volatile session in positive terrain.
Most of the sectorial indices ended in green except Media, Healthcare and IT stocks. The top gainers from the F&O segment were Berger Paints India, Hindustan Copper and REC. On the other hand, the top losers Apollo Hospitals Enterprise, Bajaj Auto and Aditya Birla Fashion and Retail. 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.
