Indian equity benchmark -- Nifty -- ended Tuesday’s trading session in a negative terrain with minor cut dragged by losses in Adani Enterprises and Mahindra & Mahindra stocks. After making a positive start, soon index alter between red and green. Traders were concerned as the team, led by researchers at the University of East Anglia (UEA) and the University of Cambridge, UK, found that India's sovereign credit rating could be downgraded due to the impact of climate change and the rise in temperature volatility by as early as the 2030s. Besides, Moody's cut credit ratings of several small to mid-sized U.S. banks and said it may downgrade some of the nation's biggest lenders, warning that the sector's credit strength will likely be tested by funding risks and weaker profitability.
In late morning session, index slipped near day’s low point, as investors were cautious with reports stating that a fresh set of 1.25 lakh entities, including government agencies, are currently under probe by the Goods and Services Tax (GST) authorities in the drive to curb fake input tax credit (ITC). These are entities found to have taken supplies from bogus entities identified in the initial two-month drive held by the Central Board of Indirect Taxes and Customs (CBIC) earlier. In last leg of trade, index trimmed most of its losses but unable to surpass neutral line and ended in negative terrain.
Traders were seen piling up positions in PSU Bank, Media and Pharma, while selling was witnessed in Auto, FMCG and Metal. The top gainers from the F&O segment were Manappuram Finance, Biocon and Sbi Life Insurance Company. On the other hand, the top losers were Ramco Cements, Adani Enterprises and Tata Chemicals. In the index option segment, maximum OI continues to be seen in the 19900 - 20100 calls and 19600 - 19800 puts indicating this is the trading range expectation.
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