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Nifty snaps 6-day losing streak

08 Oct 2024 Evaluate

Indian equity benchmark -- Nifty – snapped six day losing streak on Tuesday with ending near day’s high point, ahead of RBI monetary policy meeting. After making cautious start, soon index extended its gains, as traders took support with Oil Minister Hardeep Singh Puri’s statement that with global oil prices flaring due to widening conflict in the Middle East, India is watching the situation carefully and is confident of navigating any challenges it may pose. Traders also took a note of domestic rating agency ICRA estimated that loan securitisation volumes of standard assets touched Rs. 60,000 crore in the September quarter. Securitisation grew 36% sequentially and 31% on year basis. It noted that the sharp increase in the quarterly volumes has been fuelled by large private sector banks selling down their portfolio to improve their credit-to-deposit ratio, given the relatively lower pace of deposit accretion being witnessed. 

Index continued to trade higher in afternoon session, as sentiments were positive with reports stating that India has relaxed certain provisions in its bilateral investment treaty (BIT) with the UAE, which include a reduction in the period for investors to exhaust local remedies for any dispute to three years from the usual five years and bringing in the typically short-term portfolio investments under its ambit. In last leg of trade, index magnified its gains to end near day’s high point and settled above 25000 mark.  

Most of the sectorial indices ended in green except Metal. The top gainers from the F&O segment were Trent, Dixon Technologies (India) and IndiaMART InterMESH. On the other hand, the top NMDC, SBI Life Insurance Company and Tata Steel. 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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