Indian equity benchmark -- Nifty -- ended Friday’s trading session in negative territory, ahead of macroeconomic data i.e. HSBC India Manufacturing Purchasing Managers' Index (PMI). Index made slightly positive start, amid foreign fund inflows. As per NSE data, Foreign Institutional Investors (FII) were net buyers of Indian equities worth Rs 629.96 crore. Sentiments got boost as a finance ministry report said India is set to achieve 6.5-7 per cent GDP growth in the current financial year as indicated by the movements in high-frequency indicators till August. Some support came as expecting less worries for countrymen, the Finance Ministry said the outlook for inflation trajectory remained positive on the backs of good monsoon and healthy sowing progress of Kharif crops.
However, in afternoon session, index cut all of its gains to trade just below its neutral line, as traders were cautious with a private report stating that India’s urban-rural income gap has increased over the last seven years, as urban incomes have outpaced rural areas for both salaried and self-employed people. Besides, Moody’s said that nearly half of India’s population will reside in areas vulnerable to inland or coastal flooding. The international firm noted that while 622 million people or 44 percent of the population will be prone to inland flooding, another 48 million will be prone to coastal flooding. Finally, index ended with minor losses and settled below 26200 mark.
Traders were seen piling up positions in Oil & Gas, Healthcare and Pharma stocks, while selling was witnessed in Media, Realty and Private Bank. The top gainers from the F&O segment were Balrampur Chini Mills, Bharat Petroleum Corporation and Exide Industries. On the other hand, the top PVR INOX, United Spirits and Godrej Properties. In the index option segment, maximum OI continues to be seen in the 26900 - 27100 calls and 25900 - 26100 puts indicating this is the trading range expectation.
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