Indian equity benchmark -- Nifty -- extended its winning run for 5th consecutive day ahead of the Reserve Bank of India’s (RBI) interest rate decision due on Friday. After making slightly positive start, soon index cut its gains to trade below the neutral line, as market participants were worried after World Bank International Debt Report noted that India's total external debt has increased by $31 billion to $ 646.79 billion in 2023. The report further said that interest payment increased from $15.08 billion in 2022 to $ 22.54 billion in 2023.
However, index erased all its losses and traded higher in afternoon session, as traders took some support with the Organisation for Economic Co-operation and Development (OECD) stating that India will continue to grow at near 7 percent growth rates over the next two years, as strong investment and recovery in farm output help sustain the momentum. OECD in a report said strong investment is the main driver of this robust performance, with accelerating public infrastructure outlays. At end, Index witnessed high volatility, but ended with gains of 240.95 points.
Most of the sectorial indices ended in green except PSU Bank and Realty stocks. The top gainers from the F&O segment were BSE, Central Depository Services (India) and Indraprastha Gas. On the other hand, the top losers were Vodafone Idea, Oil India and Shree Cement. In the index option segment, maximum OI continues to be seen in the 25900 - 26100 calls and 23900 - 24100 puts indicating this is the trading range expectation.
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