Indian equity benchmark -- Nifty -- ended Tuesday’s trading session near day’s low point. After making a positive start, soon index slipped into red terrain, as investors were cautious with the commerce ministry data showing that India's exports to the UAE contracted by 22 per cent to $2.23 billion as against $2.86 billion in April. Indian and the UAE have operationalised a comprehensive free trade agreement since May 1 last year. Meanwhile, imports to the UAE also declined by 34.08 per cent to $3.15 billion in April. Some pessimism also came as a private weather forecaster suggests that southwest monsoon might be delayed and weak, and needs to be watched closely.
In afternoon session, index continued to trade in negative terrain, as traders remained concerned with report that India’s exports contracted by 12.7 per cent, third month in a row, to $34.66 billion in April even as the trade deficit reduced to a 20-month low of $15.24 billion. The decline in exports is mainly on account of poor demand in India’s key destinations - the Europe and the US - and it may take some more months for the situation to improve. In last leg of trade, index extended its losses to end 112.35 points lower.
Most of the sectorial indices ended in red except PSU Bank, IT and Consumer Durables. The top gainers from the F&O segment were Birlasoft, Astral and Aurobindo Pharma. On the other hand, the top losers were Berger Paints India, Granules India and REC. In the index option segment, maximum OI continues to be seen in the 18400 -18600 calls and 17900 -18100 puts indicating this is the trading range expectation.
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