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Nifty snaps 5-day winning streak after RBI keeps repo rate unchanged

06 Dec 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Friday’s trading session with minor losses ahead of key macro-economic data next week. After making cautions start, soon index turned volatile amid Reserve Bank of India (RBI) kept key interest rates unchanged due to ‘high inflation’. The central bank has maintained the key policy repo rate at 6.5 per cent. This is for the 11th consecutive time that the RBI has kept the repo rate unchanged. The RBI has maintained the repo rate at 6.5 per cent since February 2023. Besides, the RBI has cut real Gross Domestic Product (GDP) growth forecast for FY25 to 6.6% from 7.2% earlier. Also, it has revised the CPI inflation forecast for FY25 to 4.8% from 4.5% earlier.

In afternoon session, index wavered between green and red, as some concern also came after India Ratings and Research’s report stated that the current account deficit (CAD) for the September quarter is set to widen to 1.6 per cent, the most in the last seven quarters. Investors overlooked private report that Union finance minister Nirmala Sitharaman said the sharp decline in the growth of gross domestic product (GDP) in the September quarter is ‘not systemic’ and revealed that she expects it to pick up in the third quarter.  Finance minister expressed confidence that India's economic growth won't be badly affected despite reporting a seven-quarter low GDP of 5.4 percent. Finally, market ended just below its neutral line in volatile trading session.

Traders were seen piling up positions in Metal, Consumer Durables, and Auto stocks, while selling was witnessed in Media, IT and Bank. The top gainers from the F&O segment were Multi Commodity Exchange of India, Delhivery and Vedanta. On the other hand, the top losers were Can Fin Homes, Computer Age Management Services and Mahindra & Mahindra Financial Services. 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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