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Nifty ends in red on Friday ahead of key macroeconomic data

08 Nov 2024 Evaluate

Indian equity benchmark -- Nifty -- ended lower for yet another day ahead of key macroeconomic data i.e. Index of Industrial Production (IIP) and Consumer price index (CPI), which going to be out on November 12. Market made a slightly positive start and soon turned volatile amid persistent foreign fund outflows. The foreign institutional investors (FIIs) sold equities worth Rs 4,888 crore on November 7. Investors were concerned as S&P Global’s report stated that fight for deposits in an eventually declining rate cycle in India will add pressures on the net interest margins (NIM) for banks by 20 basis points. It said banks may see a further margin squeeze if credit and deposit growth remain steady. In afternoon session, market continued to trade lower and finally, Nifty ended below 24150 mark. Traders were cautious after a private report stated that a 21% increase in onion prices in just four days to a five-year high of more than Rs 60 per kg in several markets is likely to weigh on inflation data for November. Potato and cooking oil prices are also expected to stay higher this month.

Most of the sectorial indices ended in red except FMCG, IT and Pharma stocks. The top gainers from the F&O segment were Indian Hotels, Page Industries and Ashok Leyland. On the other hand, the top losers Petronet LNG, Chambal Fertilisers and Chemicals and Aarti Industries. In the index option segment, maximum OI continues to be seen in the 24900 - 25200 calls and 22900 - 23100 puts indicating this is the trading range expectation.

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