Indian equity benchmark -- Nifty -- ended Tuesday’s trading session just above its neutral line ahead of monthly F&O expiry. After making negative start, soon index wiped out initial losses to trade higher amid Foreign fund inflows aided domestic sentiments. As per NSE data, Foreign Institutional Investors (FII) were net buyers of Indian equities worth Rs 404.42 crore on Monday. Some support came in as ICRA said that business opportunities worth Rs 2 lakh crore are expected to open up for engineering, procurement, and construction (EPC) players over the next decade for the completion of four priority interlinking river (ILR) projects.
However, index cut all of its gains to trade lower in early afternoon session, as traders weighed escalating tensions between Israel and Hezbollah and kept a close eye on oil price movements for direction. But in late afternoon session, index made a recovery to hit 26,000 mark, as traders got support after S&P Global Ratings retained India's growth forecast at 6.8 per cent for the current fiscal and said it expects the RBI to start cutting interest rates in its October monetary policy review. In the economic outlook of Asia Pacific, S&P Global Ratings also retained its GDP growth forecast for the 2025-26 fiscal at 6.9 per cent and said solid growth in India will allow the Reserve Bank to focus on bringing inflation in line with its target. However, in last leg of trade, index came off from day’s high point to end flat.
Traders were seen piling up positions in Metal, IT and Auto stocks, while selling was witnessed in PSU Bank, FMCG and Financial Services. The top gainers from the F&O segment were National Aluminium Company, Tata Steel and Hindalco Industries. On the other hand, the top Indian Energy Exchange, Punjab National Bank and ICICI Prudential Life Insurance Company. In the index option segment, maximum OI continues to be seen in the 26900 - 27100 calls and 24900 - 25100 puts indicating this is the trading range expectation.
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