Nifty ends flat but at fresh record closing high

07 Mar 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Thursday’s trading session on a flat note with minor gains ahead of a long weekend. After making a positive start, soon index turned volatile, as traders were cautious with Crisil Ratings stating that India’s real GDP growth will moderate to 6.8 per cent in FY2025 from the 7.6 per cent expected in the ongoing fiscal. Higher interest rates and demand being tempered by lower fiscal impulse will lead to the moderation of growth. Some concern also came as Department for Promotion of Industry and Internal Trade data showed that foreign direct equity (FDI) investments contracted by 21 per cent Y-o-Y to $41.31 billion during the calendar year 2023. The sustained contraction in investment inflows comes against the backdrop of uncertainties and challenges in the global economy.

However, index managed to keep its head above neutral line in afternoon session, as traders got some encouragement with Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that the Indian economy is likely to grow more than the National Statistical Office (NSO) estimate of 7.6 per cent in the current financial year (FY24) and it could be close to 8 per cent. Meanwhile, US Federal Reserve Chair Jerome Powell assured likely rate cuts this year and ruled out near-term risks of economic recession. In last leg of trade, index trimmed some of its gains but ended in a positive terrain.

Traders were seen piling up positions in Media, Metal and FMCG stocks, while selling was witnessed in OIL & GAS, Bank and Auto. The top gainers from the F&O segment were Tata Chemicals, Tata Power and Cholamandalam Investment and Finance Company. On the other hand, the top losers Mahindra and Mahindra, Apollo Tyres and Bharat Petroleum Corporation. In the index option segment, maximum OI continues to be seen in the 22900 - 23100 calls and 21900 - 22100 puts indicating this is the trading range expectation.