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Last hour selling drags Nifty to end on flat note

11 Jun 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Tuesday’s trading session on flat note, ahead of key macroeconomic data i.e. Consumer Price Index (CPI) and the Index of Industrial Production (IIP) to be out on June 12. After making a cautious start, soon index traded on higher note, as traders got some support after Finance Ministry announced the release of an additional installment of tax devolution to states for June 2024, in a move to support state finances and spur economic development. The total amount released to states for June now stands at Rs 1,39,750 crore. Some support also came as foreign institutional investors (FIIs) extended their buying on the second day on June 10 as they bought Indian equities worth Rs 2,572.38 crore.

Index continued to trade in a positive terrain in afternoon session, as sentiments remained optimistic with Industry Body Confederation of Indian Industry stating that continuity in policy reforms under the leadership of Prime Minister Narendra Modi is likely to drive India towards the goal of becoming a developed nation. Besides, a private report stated that the new coalition government is likely to stick to its medium fiscal consolidation roadmap, but with a tilt towards populism in its first budget post the elections. In last leg of trade, index erased intraday gains to end on flat note.

Traders were seen piling up positions in Media, Realty and Auto Bank, while selling was witnessed in Pharma, FMCG and Healthcare. The top gainers from the F&O segment were Oil and Natural Gas Corporation, Petronet LNG and GMR Airports Infrastructure. On the other hand, the top losers Interglobe Aviation, Ramco Cements and Hindustan Copper. 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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