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Nifty ends higher on Tuesday

20 Aug 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Tuesday’s trading session in a positive terrain, led by gains in banking and IT stocks. Index made a positive start and extended its gains, as some support came with latest data released by the Reserve Bank of India showing that net foreign direct investment (FDI) during the April-June period of the current financial year was $6.9 billion, compared to $4.7 billion in the year-ago period. The increase was due to an improvement in gross inward FDI, which grew by 26.4 per cent year-on-year (Y-o-Y) to $22.5 billion during Q1 of 2024-25. Traders overlooked Crisil Ratings’ report stated that the weakness in oil, gems, and jewellery exports led to the contraction in India’s merchandise exports in July. Another factor that contributed to the fall in merchandise exports in July was the high domestic demand for oil products, which led to an increase in imports and a decrease in exports.

Index continued to trade higher in noon deals, as sentiments remained upbeat with the Reserve Bank of India’s (RBI) latest monthly Bulletin stating that in India, aggregate demand conditions are gathering momentum with revival in rural consumption on the back of growing incomes. This stimulus to demand is expected to reinvigorate the hitherto subdued participation of the private sector in total investment. Headline inflation moderated from its spike in June to 3.5 per cent in July, but this was primarily due to the downward statistical pull of base effects. Besides, Finance minister Nirmala Sitharaman asked public sector banks, or PSBs, to make concerted efforts to mobilise deposits by conducting special drives to sustainably fund credit growth. Finally, Nifty ended with gains of 126.20 points.

Most of the sectorial indices ended in green except consumer FMCG and Media stocks. The top gainers from the F&O segment were Balrampur Chini Mills, SBI Life Insurance Company and RBL Bank. On the other hand, the top losers Sun TV India, United Breweries and Hindustan Copper. In the index option segment, maximum OI continues to be seen in the 24900 - 25100 calls and 23900 - 24100 puts indicating this is the trading range expectation.

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