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Nifty ends near day’s low point on Tuesday

12 Dec 2023 Evaluate

Indian equity benchmark -- Nifty -- ended Tuesday’s trading session in a negative terrain as US Fed's policy outcome is due on tomorrow, while the European Central Bank (ECB) and the Bank of England (BoE) will meet on Thursday. Index made a positive start, as traders took some support with the Reserve Bank of India (RBI) in its report on state budgets, which is done annually, stating that states' finances improved in FY23, and there is a need to look at asset monetisation to help garner non-tax revenues. It stated road, transport and power sectors hold considerable potential where the states can undertake asset sales. 

But soon, index cut most of its gains and traded flat in the first half of the trading session. Traders paid no attention towards Finance Minister Nirmala Sitharaman’s statement that retail inflation is now stable and temporary increases in inflation on a few occasions are caused by demand-supply mismatches arising out of global shocks and adverse weather conditions. Index witnessed a sharp fall in the second half of the trading session, as traders got worried, after the International Monetary Fund's official warned that fragmentation in the global economy and clear shifts in underlying bilateral trade could trigger a new Cold War given the conflict in Ukraine and U.S.-China tensions. Finally, index ended with losses of 90.70 points. 

Most of the sectorial indices ended in red except Media, Metal and PSU Bank stocks. The top gainers from the F&O segment were HDFC Life Insurance Company, Jindal Steel and Power and Can Fin Homes. On the other hand, the top losers were PI Industries, Bharat Petroleum Corporation and Cummins India. In the index option segment, maximum OI continues to be seen in the 20900 - 21100 calls and 19900 - 20100 puts indicating this is the trading range expectation.

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