Indian equity benchmark -- Nifty managed to end above its neutral line on Wednesday after the Reserve Bank of India (RBI) kept the benchmark repo rate unchanged at 5.25 per cent and maintained its neutral policy stance, broadly in line with market expectation. After a positive start, index remained volatile during the day, with second half of the trading session witnessing notable losses, as sentiments remained affected with India's recently introduced closing auction mechanism for derivative-linked stocks.
Besides, India’s services sector remained in expansionary territory in the month of July but the growth lost substantial momentum, as new business inflows increased only moderately amid softer demand, competitive pressures and fewer enquiries. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index fell to 53.3 in July from 57.4 in June. However, at the end, Nifty staged a sharp recovery to end higher as a sharp fall in oil prices helped ease concerns around inflation and interest rates.
Traders were seen piling up positions in Auto, Metal and Realty stocks, while selling was witnessed in Media, Healthcare, and IT. The top gainers from the F&O segment were Hindustan Zinc, Jubilant Foodworks and Bosch. On the other hand, the top losers were Kalyan Jewellers India, Multi Commodity Exchange of India and Marico. 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.
