Indian equity benchmark -- Nifty -- finished 14-day gaining streak on Wednesday and ended with minor losses after weak manufacturing data in the US brought back fears of a recession in the US economy. Index made gap-down opening, as traders were cautious with Credit rating agency ICRA’s report stated that the increasing delinquencies in the microfinance sector, which is likely to push up the Non-banking finance companies - microfinance institutions (NBFC-MFI) credit costs to 320-340 bps in FY2025 from 220 bps in FY2024. The evolving asset quality risks will dampen sectoral growth and earnings in the current fiscal. ICRA expects NBFC-MFIs’ AUM growth to dip to 17-19% in FY2025 from 29% in FY2024.
Index continued to trade lower in noon deals even after India's services sector experienced its fastest growth in five months this August, driven by resilient demand and easing inflationary pressures, according to HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global. India's PMI climbed to 60.9 in August, up from July's 60.3, surpassing the preliminary estimate of 60.4. In last leg of trade, index came off from its day’s low point, but ended in negative territory.
Traders were seen piling up positions in Healthcare, Pharma and Realty stocks, while selling was witnessed in PSU Bank, IT and Metal. The top gainers from the F&O segment were Biocon, Hindustan Petroleum Corporation and Berger Paints. On the other hand, the top losers RBL Bank, Federal Bank and Wipro. 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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