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Nifty erases intraday gains to end on flat note

09 Jan 2024 Evaluate

Indian equity benchmark -- Nifty -- closed flat with minor gains on Tuesday, ahead of the Q3 earnings of IT majors Infosys and TCS. Index made a gap-up opening, as traders took support with Commerce Secretary Sunil Barthwal’s statement that the country’s agriculture exports, which stood at over $50 billion at present, are likely to double by 2030 and reach $100 billion. He said that the country is targeting $2 trillion worth of exports of goods and services by 2030. Some support also came with report stating that the next round of talks for the proposed free trade agreement (FTA) between India and Oman will start from January 16 and the negotiations for the pact are progressing well. The talks on the text of most of the chapters have been concluded by both sides for the pact.

However, in late afternoon session, index trimmed most of its intraday gains, on the back of negative cues from European markets. Sentiments got hit, amid reports that India may see around $30 billion shaved off its total exports in the current fiscal year, as threats to cargo vessels in the Red Sea lead to a surge in container shipping rates and prompt exporters to hold back on shipments. But, index managed to end in positive terrain with minor gains. Meanwhile, highlighting the 150% growth in processed food exports over the last nine years, Union Minister of Commerce & Industry, Piyush Goyal has said that India’s agricultural exports stood at an aggregate of about $53 billion. 

Traders were seen piling up positions in Healthcare, Auto and Pharma stocks, while selling was witnessed in Media, Bank and Financial Services. The top gainers from the F&O segment were Siemens, DLF and National Aluminium Company. On the other hand, the top losers were Polycab India, Zee Entertainment Enterprises and Vodafone Idea. In the index option segment, maximum OI continues to be seen in the 21900 - 22100 calls and 20900 - 21100 puts indicating this is the trading range expectation.

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