After witnessing strong rally in previous session, Indian equity benchmark -- Nifty -- ended Friday’s trading session in negative terrain with minor losses, amid profit booking by market participants. Index made a cautious start and traded in red in morning session, as traders sold their riskier stocks. Investors reacted to mixed industrial output and retail inflation readings. India's Consumer Price Index (CPI)-based retail inflation rose marginally in August to 3.65 per cent from 3.6 per cent in July, yet remained below the Reserve Bank of India (RBI)’s medium-term target of 4 per cent for the second time in nearly five years, mainly because of a high base during the same period a year ago. Separately, the Index of Industrial Production (IIP) also rose slightly to 4.83 per cent in July from 4.72 per cent in June.
Index traded just below its neutral line in noon deals. Traders took note of report that Reserve Bank of India Governor Shaktikanta Das said that India has a growth potential of at least 7.5 per cent. This projection is slightly above the Reserve Bank of India’s estimate of 7.2 per cent growth for the current financial year, FY25. In late afternoon session, Index extended its losses to end in negative territory.
