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Nifty erases intraday gains to end lower on Friday

04 Oct 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Friday’s trading session with cut of over half a percent ahead of Reserve Bank of India (RBI) Interest Rate Decision slated to be announced on October 09. Index made cautious start and turned volatile with exchange data showing that Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, offloading shares worth Rs 15,243.27 crore on a net basis in the cash segment. FIIs have sold shares worth over Rs 30,000 crore since Monday. However, in late morning session, market turned positive to trade higher as traders took some support after CareEdge Global IFSC, a subsidiary of CARE Ratings, has assigned a BBB+ rating to India, reflecting the country’s strong post-pandemic recovery and its focus on infrastructure investments. CareEdge Global’s assessment highlights India’s resilient economic performance, projecting GDP growth in the range of 6.5-7 per cent in the coming years.

In afternoon session, index slipped into deep red as investors were worried with report that India’s services sector activity eased in the month of September, as new business, international sales and output all rose at the slowest rates since late-2023. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index fell to 57.7 in September from 60.9 in August. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also eased to 58.3 in September as against 60.7 in August. Finally, Nifty settled below 25,050 mark. 

Most of the sectorial indices ended in red except PSU Bank and IT stocks. The top gainers from the F&O segment were Dr. Lal PathLabs, Torrent Pharmaceuticals and Bank of Baroda. On the other hand, the top Mahindra & Mahindra Financial Services, Chambal Fertilisers and Chemicals and Godrej Properties. 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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