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Nifty ends at record closing high point on Thursday

23 May 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Thursday’s trading session at record closing high point, on the back of heavy buying in most of the sectoral indices. After making a cautious start, soon index began its northward journey, as traders got some support with a private report stating that India is seen as an emerging economic superpower of the world. India’s central bank in its monthly economic review says “there is a growing optimism that India is on the cusp of a long awaited economic take-off.” India is positioned to remain the fastest-growing major economy, demonstrating resilience amid geopolitical challenges and supply chain pressures. Traders took a note of report that the Reserve Bank of India's board approved transfer of Rs 2.11 trillion ($25.35 billion) as surplus to the federal government for the fiscal year ended March. As per the interim budget estimates for fiscal year 2024/25, the Narendra Modi-led government had budgeted for a dividend of Rs 1.02 trillion from the central bank, state-run banks and other financial institutions.

In afternoon session, index extended its gains to trade near all-time high point, as sentiments were positive after the business activity in India expanded robustly in the month of May, aided by rise in aggregate exports, the steepest expansion in private sector jobs since September 2006 and a notable improvement in business confidence. The headline HSBC Flash India Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - rose from a final reading of 61.5 in April to 61.7 in May, which indicated the third-strongest rate of expansion in close to 14 years. In last leg of trade, index ended its northward journey at lifetime closing high point.

Most of the sectorial indices ended in green except Healthcare and Pharma stocks. The top gainers from the F&O segment were Adani Enterprises, Adani Ports and Special Economic Zone and Vodafone Idea. On the other hand, the top losers Deepak Nitrite, Lupin and National Aluminium Company. In the index option segment, maximum OI continues to be seen in the 23400 - 23600 calls and 21900 - 22100 puts indicating this is the trading range expectation.

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