Indian equity benchmark Nifty closed the volatile day of trade with decent gains on Thursday amid weekly F&O expiry. After making an optimistic start, market unable to protect its gains and entered into red amid Foreign fund outflows. Foreign institutional investors (FIIs) net sold shares worth Rs 2,213.56 crore on April 3, provisional data from the NSE showed. Some cautiousness also came in market as a private report said that merchandise exports from India for the financial year 2023-24 (FY24) may show a contraction of around 1-1.5 per cent after two consecutive years of growth, even as March is likely to witness robust double-digit growth.
Besides, traders avoided to take positions ahead of the RBI monetary policy outcome on Friday. However, index erased its all losses and hit green trend in afternoon session. Some support came as India’s services sector activity rose to one of strongest rates since mid-2010 in March, as buoyant demand for Indian services created a cascade of positivity for the sector. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index surged to 61.2 in March from 60.6 in February. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also jumped to 61.8 in March as against 60.6 in February. Market remained higher till the end of the session. Finally, Nifty ended above its crucial 22,500 level.
Traders were seen piling up positions in Bank, IT and Auto stocks, while selling was witnessed in Media, FMCG and Metal. The top gainers from the F&O segment were Bandhan Bank, Vedanta and IPCA Lab. On the other hand, the top losers Hindustan Petroleum Corp, Colgate-Palmolive Company and Dabur India. In the index option segment, maximum OI continues to be seen in the 22950 - 23100 calls and 22450 - 22600 puts indicating this is the trading range expectation.
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