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Nifty ends lower ahead of inflation data

10 Jul 2024 Evaluate

After hitting record high in previous session, Indian equity benchmark -- Nifty -- drifted southward on Wednesday and ended in negative territory ahead of the India’s Consumer Price Index (CPI) inflation and Index of Industrial Production (IIP) data to be out on July 12. Market made cautious start and soon witnessed sharp fall in morning session, as traders were cautious with a private report stating that India consumer price inflation probably edged up in June, snapping five months of declines, largely because of a jump in vegetable prices caused by the damage to crops wrought by extreme weather. Traders paid no heed towards global rating agency, Moody’s report in which it kept India’s 2024 growth forecast unchanged at 6.8 percent from its March forecast. The rating firm predicted Indian economy to grow 6.4 percent in 2025. It said increasing domestic and overseas demand is supporting GDP growth in emerging markets (EMs), with wide variation by country. 

In afternoon session, index came off from its day’s low points, but remained lower till the end of the session, as traders continued to sell their riskier assets. Traders overlooked Reserve Bank of India (RBI) deputy governor Swaminathan J’s statement that the banking sector, which is at a decadal high in terms of financial parameters, is all set to support the growth of the Indian economy. He also said the RBI has undertaken several initiatives to enhance the effectiveness of the auditing process.

Traders were seen piling up positions in Pharma, Healthcare and FMCG, while selling was witnessed in Auto, Media and Metal. The top gainers from the F&O segment were India Cements, Asian Paints Asian Paints and Mahanagar Gas. On the other hand, the top losers Mahindra & Mahindra, Bandhan Bank and Multi Commodity Exchange of India. In the index option segment, maximum OI continues to be seen in the 24900 - 25100 calls and 23400 - 23600 puts indicating this is the trading range expectation.

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