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Nifty ends flat with positive bias on Tuesday

21 May 2024 Evaluate

Indian equity benchmark -- Nifty – ended Tuesday’s trading session in a positive with minor gains, amid uncertainty over the Lok Sabha elections. Index made a negative start, amid broad-based selling. Foreign fund outflows dented sentiments in the markets. Foreign institutional investors continue to sell Indian equities, with net sales of Rs 92.95 crore worth of shares on May 18. Traders were concerned with a private report that demand-supply mismatches could keep prices of pulses elevated until the new crop starts arriving in the market in October, putting further pressure on already high food inflation. 

However, index cut all of its losses to trade on higher note in afternoon session, as traders got some support after India Ratings and Research expects the country's GDP growth rate for the March quarter at 6.2 per cent and around 6.9-7 per cent for the 2023-24 fiscal. The Indian economy grew 8.2 per cent in the June quarter, 8.1 per cent in the September quarter and 8.4 per cent in the December quarter of 2023-24. Sentiments were positive as EPFO’s provisional payroll data showed that EPFO has added 14.41 lakh net members in the month of March, 2024. The data indicates that around 7.47 lakh new members have been enrolled during March 2024. In last leg of trade, index came off day’s high point to end on flat note.

Traders were seen piling up positions in Metal, PSU Bank and IT, while selling was witnessed in Private Bank, FMCG and Bank. The top gainers from the F&O segment were Balkrishna Industries, Vedanta and Aditya Birla Fashion and Retail. On the other hand, the top losers Astral, City Union Bank and Multi Commodity Exchange Of India. 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.

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