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.
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