Indian equity benchmark -- Nifty -- remained higher for second straight day and ended Monday’s trading session on record closing high, led by positive expectations from the upcoming Union Budget. Index made a decent start, as foreign fund inflows aided sentiments in the domestic markets. The Foreign Portfolio Investment (FPI) in the Indian equity market increased by Rs 7,390 crore during the second week of July, according to investment data from the National Securities Depository. The data also pointed out that the net investment by Foreign Portfolio Investors in July has increased to Rs 15,352 crore. Traders took encouragement as the government data showed that the industrial output growth surprised in May rising to a seven month high of 5.9 percent from 5 percent in the previous month, as manufacturing and electricity production soared. Investors overlooked the report that India’s retail inflation rose to four-month high of 5.08 percent in June compared with 4.75 percent in the previous month.
Index magnified its gains to touch day’s high point in noon deals despite the annual rate of inflation based on the all-India Wholesale Price Index number edged up to 3.36 per cent in June this year compared to the same month of the previous year. The month-over-month change in WPI for June stood at 0.39 per cent as compared to May. Finally, Nifty closed above 24550 level.
Most of the sectorial indices ended in green except IT stocks. The top gainers from the F&O segment were Oil and Natural Gas Corporation, Abbott India and Apollo Tyres. On the other hand, the top losers Astral, Cummins India and LTIMindtree. 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.
