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Nifty witnesses sharp sell off; plunges over 1.50%

13 Mar 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Wednesday’s trading session near day’s low point ahead of Wholesale Price Index (WPI) data, which is slated to be released on tomorrow. After making slightly positive start, soon index slipped into red, as some concern came after growth in factory output, based on the Index of Industrial Production (IIP), slowed to 3.8 per cent in January 2024, mainly due to poor performance of manufacturing, mining and power sectors. It was 5.8 in January 2023. The IIP figures for December 2023 was revised upward to 4.2 per cent from 3.8 per cent earlier estimate.

In afternoon session, index extended its losses and remained lower till the end, as traders were cautious with a report of economic think tank GTRI stating that with escalating everyday attacks and no end in sight, the Red Sea crisis will adversely impact trade volumes in substantial ways in 2024. The Global Trade Research Initiative (GTRI) said that rising shipping, and insurance costs and delayed arrival of shipments will continue to disrupt global value chains, squeeze margins, and make exports of many low-margin products unviable from current locations. In last leg of trade, index continued to trade near day’s low point and ended with losses of 338 points.

Most of the sectorial indices ended in red except FMCG stocks. The top gainers from the F&O segment were ITC, Abbott India and ICICI Bank. On the other hand, the top losers National Aluminium Company, Vodafone Idea and Steel Authority of India. In the index option segment, maximum OI continues to be seen in the 22900 - 23100 calls and 20900 - 21100 puts indicating this is the trading range expectation.

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