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.
