Indian equity benchmark -- Nifty -- ended Wednesday’s trading session in red ahead of weekly F&O expiry. After making a negative start, soon index turned volatile amid unabated foreign fund outflows. Foreign Institutional Investors (FIIs) sold equities worth Rs 1,748.71 crore on Tuesday, continuing a month-long selling spree. Traders overlooked Reserve Bank of India (RBI) deputy governor Michael Debabrata Patra’s statement that the retail inflation is projected to average 4.5 per cent in 2024-25 and align with the target on a durable basis by 2025-26.
In afternoon session, index touched its day’s low point, as some concern came after SBI research stated that the soaring figures of retail inflation in September could force the Reserve Bank of India (RBI) to continue with neutral stance for a longer duration, and added that first rate cut could be based on growth, and need not be inflation. The research stated on the rationale that if inflation remains sketchy in the coming months, the apex bank will consider growth as the criteria for rate cut. Investors ignored private report that India’s trade deficit narrowed to a five-month low of $20.8 billion in September from $29.7 billion a month back as merchandise export growth turned positive for the first time in three months. In last leg of trade, index came off from the day’s low point, but settled below 25000 mark.
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