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Nifty erases initial gains to end lower on Friday

21 Jun 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Friday’s trading session in a negative terrain, as traders turned their attention on the upcoming GST meeting, where the potential rationalization of GST rates in certain sectors is under discussion. After making a slightly positive start, soon index slipped into red and traded on lower, as some cautiousness came after report by the United Nations Conference on Trade and Development (UNCTAD) stating that Foreign Direct Investment (FDI) flows to India plummeted by 43 per cent in 2023 to $28 billion amid a global decline of 2 per cent. Index continued to trade below its neutral line in noon deal, as market participants remained cautious with Minneapolis Fed President Neel Kashkari’s statement that it will probably take a year or two to get inflation back to the central bank's 2 percent target. Traders overlooked report that 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 - increased from 60.5 in May to 60.9 in June. However, in last hours of trade, index trimmed most of its losses, but closed in a negative terrain. 

Traders were seen piling up positions in Media, IT and Consumer Durables, while selling was witnessed in PSU Bank, Oil & Gas and FMCG. The top gainers from the F&O segment were Granules India, Havells India and Vodafone Idea. On the other hand, the top losers Chambal Fertilisers and Chemicals, Gujarat Narmada Valley Fertilizers & Chemicals and Coromandel International. In the index option segment, maximum OI continues to be seen in the 22900 - 24100 calls and 22900 - 23100 puts indicating this is the trading range expectation.

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