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Nifty ends higher ahead of RBI’s interest rate decision

06 Jun 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Thursday’s trading session on higher note, ahead of Reserve Bank of India’s (RBI) interest rate decision due on June 07. Investors were hoping that the central bank is likely to maintain the status quo on repo rate at 6.50%. Index made a positive start and extended its gains, as sentiments were upbeat with report stating that maintaining consistency in attracting foreign investment inflows, India has received a total foreign direct investment (FDI) inflow of $70.9 billion in the financial year 2023-24. India received the highest FDI of $6 billion in October 2023 followed by $5.9 billion in January 2024. Some optimism came as India Ratings and Research (Ind-Ra) projects that India's current account balance (CAB) will achieve a surplus of approximately $6 billion (0.6 per cent of GDP) in the fourth quarter of the fiscal year 2024 (Q4FY24). In afternoon session, index trimmed some of its gains and turned volatile, as traders were cautious with Moody's Ratings’ latest report stating that the BJP-led National Democratic Alliance's (NDA) slim majority in Lok Sabha may delay more far-reaching economic and fiscal reforms that could impede progress on fiscal consolidation. However, in last leg of trade, index extended its gains to end on higher note.

Most of the sectorial indices ended in green except FMCG, Healthcare and Private Bank stocks. The top gainers from the F&O segment were Biocon, Bharat Heavy Electricals and Aditya Birla Capital. On the other hand, the top losers Sun TV Network, Hindalco Industries and Pidilite Industries. In the index option segment, maximum OI continues to be seen in the 22900 - 24100 calls and 21900 - 22100 puts indicating this is the trading range expectation.

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