After hitting record high in morning deals, Indian equity benchmark -- Nifty -- failed to hold its initial gains and ended Friday’s trading session in negative terrain with marginal losses, impacted by last hour selling in banking stocks. Index made a positive start, as sentiments were upbeat with the Reserve Bank of India (RBI) in its Financial Stability Report (FSR) stating that India’s economy and its financial system are both strong and resilient. This stability is supported by strong macroeconomic fundamentals and a sound financial system. The RBI points out that with healthier balance sheets, banks and financial institutions in India are actively supporting economic activities through consistent credit expansion. In afternoon session, index erased most of its gains and altered between red and green, as traders were cautious ahead of HSBC Manufacturing PMI Final data. Besides, a private report stated that India's security establishment is advocating a cautious approach to any unhindered and blanket approval to the FDI proposals from China given the history of corporate behaviour of Chinese companies in the country. Finally, index ended below neutral line with minor cut.
Traders were seen piling up positions in Oil & Gas, Pharma and Healthcare, while selling was witnessed in Private Bank, Bank and Financial services. The top gainers from the F&O segment were Mahanagar Gas, Persistent Systems and Gujarat Narmada Valley Fertilizers & Chemicals. On the other hand, the top losers Samvardhana Motherson International, Polycab India and Cummins India. In the index option segment, maximum OI continues to be seen in the 24900 - 25100 calls and 29900 - 23100 puts indicating this is the trading range expectation.
