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Nifty ends higher amid US interest rate cut hopes

10 May 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Friday’s trading session in a positive terrain on account of buying in Metal, Oil & Gas and Auto sectors’ stocks. After making cautious start, soon index extended its gains to trade near days’ high point, as sentiments got boost after the Export-Import Bank of India forecast India’s merchandise exports to grow 12.3% on-year at $116.7 billion in the April-June quarter of FY25, on strong economic fundamentals and sustained manufacturing and services activity. Some support also came with a private report that India’s retail market is poised to surpass $2.2 trillion by 2030, with approximately 90 per cent of sales expected to occur offline. The report also finds that a substantial portion of all purchases will be influenced by what consumers see online.

Index came off day’s high points in afternoon session, amid foreign fund outflows. Foreign institutional investors (FIIs) offloaded shares worth Rs 6,994.86 crore on May 9. But, index remained higher till the end, as investors were got some encouragement after data showing a much bigger than expected increase in U.S. jobless claims for last week added to recently renewed optimism that the US Fed will lower interest rates by September. Traders took a note of report that the United Nations migration agency has said India received over $111 billion in remittances in 2022, the largest in the world, becoming the first country to reach and even surpass the $100 billion mark.

Most of the sectorial indices ended in green except IT, Realty and Bank stocks. The top gainers from the F&O segment were TVS Motor Company, Hero Motocorp and Tata Motors. On the other hand, the top losers Piramal Enterprises, Manappuram Finance and Aarti Industries. In the index option segment, maximum OI continues to be seen in the 29900 - 23100 calls and 21900 - 22100 puts indicating this is the trading range expectation.

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