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Nifty extends winning rally to thirteen session

02 Sep 2024 Evaluate

Indian equity benchmark -- Nifty – extended winning rally to thirteen session. Index made optimistic start, as traders got some support with the RBI stating that India’s forex reserves jumped by $7.023 billion to touch a new high of $681.688 billion in the week ended August 23. Traders took note of Defence Minister Rajnath Singh’s statement that the Indian economy has now improved to Fabulous Five from the Fragile Five before 2014. The minister also added that the Indian economy is one of the fastest-growing large economies now. However, index trimmed some of its gains in afternoon session amid private-sector survey showed India's manufacturing activity growth eased to a three-month low in August as demand softened significantly, casting another shadow over the otherwise robust economic outlook. The HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell for a second month in August, dropping to 57.5 from July's 58.1 and below a preliminary estimate of 57.9. 

But, index remained higher till the end, as traders continued to take support with the government data has showed that Gross Goods and Services Tax (GST) collections in the month of August 2024 grew 10 per cent to about Rs 1.75 lakh crore. In July 2024, gross GST mop-up was Rs 1.82 lakh crore, while in August 2023 it was Rs 1.59 lakh crore. As per the data, gross GST revenues from domestic transactions grew 9.2 per cent to about Rs 1.25 lakh crore. Revenues from import of goods were up 12.1 per cent to Rs 49,976 crore. Finally, index ended at all-time closing high point.

Traders were seen piling up positions in FMCG, PSU Bank and IT stocks, while selling was witnessed in Metal, Pharma and Healthcare. The top gainers from the F&O segment were Gujarat Gas, Bajaj Finserv and Max Financial Services. On the other hand, the top losers Granules India, Indus Towers and Dixon Technologies (India). In the index option segment, maximum OI continues to be seen in the 25900 - 26100 calls and 24900 - 25100 puts indicating this is the trading range expectation.

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