Indian equity benchmark -- Nifty -- ended in negative terrain on Tuesday on the back of selling in Auto and IT stocks. After opening flat, soon index slipped into deep red, as investors were cautious with a report by Global Trade Research Initiative (GTRI) stating that India, despite being one of the few developing countries self-sufficient in food, still shipped in $33 billion of farm products in 2023 with more than half of it just accounted for by vegetable oils. Weak trends from Asian markets and fresh foreign fund outflows also weighed on market sentiments. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 855.80 crore on Monday, according to exchange data.
Index continued to trade lower in noon deal, as sentiments remained cautious after Truck drivers across India are protesting against the new provision of hit and run. The revised Bharatiya Nyay Sanhita has raised the penalty for hit and run offenses for up to ten years. Previously, hit and run cases were filed under various sections of the IPC, with a punishment of two years. The strike is likely to affect the supply chains as well, especially the supply of petrol and diesel. In last leg of trade, index trimmed some of its intraday losses but ended in negative terrain.
Traders were seen piling up positions in Pharma, Healthcare and Media stocks, while selling was witnessed in Auto, IT and Bank. The top gainers from the F&O segment were Aditya Birla Fashion and Retail, Lupin and Biocon. On the other hand, the top losers were Vodafone Idea, Eicher Motors and AU Small Finance Bank. In the index option segment, maximum OI continues to be seen in the 21900 - 22100 calls and 21400 - 21600 puts indicating this is the trading range expectation.
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