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Nifty witnesses massacre; plunges over 1%

02 Aug 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Friday’s trading session near day’s low point amid concerns about the outlook for global economic growth after some disappointing economic data from the U.S., Europe and China that offset optimism about a near-term interest rate cut by US Fed. Index made gap-down opening, as some cautiousness came with the India Meteorological Department (IMD) statement that the monsoon during the remaining two months of the season (August-September) on average is expected to be above-normal with September poised to get more rain than August. The forecast assumes significance as more than normal rains in September, the last month of the four-month season may hurt the standing kharif crops depending on their stage of maturity.

Index continued to trade in deep red in noon deals, as sentiments remained down beat after Reserve Bank’s latest data showed that an unfavourable base effect brought down the overall non-food credit growth of the banks to 13.9 per cent at Rs 163.46 lakh crore as of June 30, 2024 as against 16.3 per cent in June 2023, even as gold and housing loans rose sharply. The growth in credit card outstanding, meanwhile, declined during the 12-month period. Finally, index ended with over a percent cut and settled below 24,800 mark.

Most of the sectorial indices ended in green except Pharma and Healthcare. The top gainers from the F&O segment were Info Edge (India), Indian Energy Exchange and India Cements. On the other hand, the top losers Cummins India, Birlasoft and Escorts Kubota. In the index option segment, maximum OI continues to be seen in the 24900 - 25100 calls and 24400 - 24600 puts indicating this is the trading range expectation.

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