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Nifty ends flat with positive bias on Wednesday

04 Dec 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Wednesday’s trading session with minor gains ahead of RBI interest rate decision. Index made a slight positive start and extended its gains to trade higher, as some optimism come after foreign institutional investors (FIIs) slowly returning to buying ways, or at least slowing down their continuous selling of Indian equities. FIIs purchased equities of more than Rs 3,600 crore on December 3. Some support also came as a business survey showed growth in India's dominant services sector remained strong in November despite the steepest rise in prices for over a decade, while consistent demand led to a significant rise in business sentiment and record hiring. The HSBC final India Services Purchasing Managers' Index, compiled by S&P Global, stayed almost unchanged at 58.4 in November from 58.5 in October, but was lower than a preliminary estimate of 59.2.

However, in afternoon session, index came off from the day’s high point and turned volatile, as caution prevailed ahead of the release of key U.S. jobs report and Fed Chair Jerome Powell's remarks this week. Sentiments were dampened, as Commerce and Industry Minister Piyush Goyal said that the long voyage time due to ships taking longer routes through Cape of Good Hope has impacted global trade, including Indian exports. This has resulted in increased time for goods to reach international markets. Finally, index managed to end just above its neutral line.

Traders were seen piling up positions in PSU Bank, Realty, and Financial Services stocks, while selling was witnessed in FMCG, Auto and Oil & gas. The top gainers from the F&O segment were RBL Bank, Macrotech Developers and Oberoi Realty. On the other hand, the top losers were Adani Green Energy, Adani Total Gas and Bharti Airtel. In the index option segment, maximum OI continues to be seen in the 24900 - 25100 calls and 23900 - 24100 puts indicating this is the trading range expectation.

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