Indian equity benchmark -- Nifty -- ended Wednesday’s trading session in a negative terrain, ahead of May F&O expiry. Index made a gap-down opening, as traders were cautious after data released by the government showed the ratio of cost overruns in central government projects rose to a 12-month high of 20.09% in April compared with 18.65% in the previous month. It said the anticipated cost of 1,838 projects with a value of Rs 150 crore and above, at Rs 33.2 lakh crore, was Rs 5.6 lakh crore higher than the original cost, with the ratio of delayed projects also rising compared with the previous few months.
Index remained lower in afternoon session, ahead of the general election results, due next week. Traders overlooked report by SBI Research in which it anticipates India's GDP growth could touch 8 per cent in FY24, with strong performance across various economic indicators and favorable monsoon conditions. The report also highlights the potential impact of global economic resilience on India's growth trajectory. Despite the challenges faced by the global economy, including geopolitical tensions and extreme weather events, global growth remains resilient, supported by easing inflationary pressures and strong employment conditions. In last leg of trade, index extended its losses to end near day’s low point.
Traders were seen piling up positions in Pharma, Healthcare and Metal, while selling was witnessed in Financial Services, Private Bank and Bank. The top gainers from the F&O segment were Aditya Birla Fashion and Retail, Samvardhana Motherson International and Hindalco Industries. On the other hand, the top losers ICICI Prudential Life Insurance Company, Indian Railway Catering and Tourism Corporation and Interglobe Aviation. 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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