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Nifty witnesses sharp selloff; plunges over 1%

12 Apr 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Friday’s trading session near day’s low point, on account of heavy selling in Sun Pharmaceutical Industries, Maruti Suzuki and Power Grid Corporation of India companies’ stocks. Index made a negative start, as market participants were cautious with a private report stating that India's consumer price inflation likely eased to a five-month low of 4.91% in March but was still above the Reserve Bank of India's (RBI) 4% medium-term target as food price rises persist. Investors overlooked the RBI’s Monetary Policy Report stating that the government's continued emphasis on infrastructure creation, coupled with an uptick in private corporate investment and buoyant business optimism, could nurture a sustained revival in the investment cycle, which augurs well for boosting productivity and growth in the economy.

In afternoon session, index continued its southward journey, as sentiments remained downbeat with a private report stating that the growing Indian economy is creating jobs, but mainly for the unskilled and semi-skilled workers. Graduates and those having higher qualifications, even with technical degrees and diplomas, are witnessing employment generation at a slow pace. In last leg of trade, index slipped near day’s low point and ended with losses of 234.40 points, as investors sold their riskier assets. Besides, selling was witnessed across all sectors. 

All the sectorial indices ended in red. The top gainers from the F&O segment were Exide Industries, Indian Railway Catering and Tourism Corporation and Vedanta. On the other hand, the top losers Page Industries, Sun Pharmaceutical Industries and Laurus Labs. In the index option segment, maximum OI continues to be seen in the 23400 - 23600 calls and 22400 - 22600 puts indicating this is the trading range expectation.

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