Indian equity benchmark -- Nifty -- erased all its initial gains to end Tuesday’s trading session in negative territory amid US recession fears. Index made an optimistic start, as traders took some support with the private report stating that India's economy is expected to grow at 7-7.2 per cent in the current fiscal year driven by robust economic fundamentals and continuity in domestic policy reforms. In afternoon session, index continued to trade in green, as traders got encouragement with the think tank GTRI stating that reforms in certain customs and banking rules, access to credit, and incentives at par with China will be key for India to boost its exports through e-commerce medium to $350 billion by 2030. However, in last leg of trade, index unable to hold its gains and ended with losses of 63.05 points. Investors overlooked S&P Global Ratings’ statement that India is a well-diversified exporter and a blip in its exports to Bangladesh is unlikely to have any meaningful impact on India's overall trade position for the full year. Bangladesh is facing its worst political crisis since independence in 1971, with Prime Minister Sheikh Hasina resigning amid massive anti-government protests.
Traders were seen piling up positions in Realty, Metal and IT stocks, while selling was witnessed in Financial Services, PSU Bank, and Auto. The top gainers from the F&O segment were Info Godrej Properties, Britannia Industries and IPCA Laboratories. On the other hand, the top losers Marico, LIC Housing Finance and Power Finance Corporation. In the index option segment, maximum OI continues to be seen in the 24900 - 25100 calls and 23900 - 24100 puts indicating this is the trading range expectation.
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