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Nifty ends flat with positive bias

03 Sep 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Tuesday’s trading session near neutral lines, ahead of India’s HSBC Services PMI Final and HSBC Composite PMI Final data to be out on September 04. After making positive start, soon index cut all of its gains to trade in red, as traders were cautious with Chief Economic Advisor (CEA) V Anantha Nageswaran’s statement that India is well positioned for strong global economic growth, but the country must be cautious of financialization as it progresses towards becoming a developed nation by 2047. Nageswaran highlighted the risks of an oversized financial market influencing public policy and economic outcomes, a trend that he believes India should avoid. Besides, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve. Acharya said after the Covid-19 pandemic, rural consumption and investments have weakened. 

In afternoon session, index trimmed most of its losses and traded near neutral line, as traders took some support after the World Bank in its latest ‘India Development Update: India’s Trade Opportunities in a Changing Global Context’ has said that the Indian economy continues to grow at a healthy pace despite challenging global conditions. According to the World Bank, the growth is forecast to reach 7 percent in FY24/25 and remain strong in FY25/26 and FY26/27. Finally, index ended flat with positive bias.  

Traders were seen piling up positions in Financial Services, Consumer Durables and Bank stocks, while selling was witnessed in Media, Metal and Realty. The top gainers from the F&O segment were Oracle Financial Services Software, JK cement and Dixon Technologies (India). On the other hand, the top losers Petronet LNG, Jindal Steel And Power and Marico. 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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