Nuvama Institutional Equities
Rollovers – SSF: 93%; MKT Wide: 89%; Nifty: 70%
Market-wide OI is at historic highs | Bullish momentum should continue with sectoral rotation
Client (HNI/Retail) covers all Index shorts, adds meaningful SSF longs; FII adds SSF longs and lightens Index longs
In the July series, the Nifty index showcased a modest yet intriguing performance, trading within a tight range of 1,000 points and
ultimately closing with a 1.5% gain at 24,400 levels. The overall index volatility appeared limited, primarily due to significant sectoral
rotations. IT, FMCG, and Pharma sectors drove the gains with impressive increases of 11%, 10%, and 8% respectively.
Conversely, the
Banking sector exerted downward pressure, with Nifty Bank ending 3.5% lower, and Metals seeing a 6.5% decline. The series painted a balanced picture at the index level, underlined by budget day volatility and dynamic sectoral shifts throughout.
the period.
FIIs were net buyers to the tune of USD 3.3 bn, while DIIs continued to support the market with a deployment of USD 0.73 bn. While the participation of HNIs and Retail investors is not officially reported, their influence on the market must have undoubtedly been significant.
Nifty Index gained 1.5%, settling at 24,406 and Nifty Bank was down 3.6%, settling at 50,889. The Mid-cap and Small-cap Index
were outliers with the gains of 2.4% and 2.8% respectively.
In July series, the sectoral indices which gained the most were IT Index (up 10.9%), FMCG Index (up 9.7%), Pharma Index (up 8.2%), Energy Index (up 3.5%), Media Index (up 2.3% ) and Auto Index (up 1.7%) while the sectors which settled in red are Metals Index (down 6.3%), Private Bank Index (down 3.9%), Realty Index (down 3.1%), Financial Services Index (down 2.4%) and PSU Bank Index (down 2.1%).