Indian equity benchmark -- Nifty -- ended Tuesday’s trading session near day’s low point, ahead of the release of key US inflation reports later in the day and tomorrow, with the data likely to impact the outlook for interest rates. Index made a cautious start and traded near neutral line in morning deals, amid foreign fund outflows. Foreign Institutional Investors (FIIs) again turned sellers on Monday as they offloaded equities worth Rs 4,680.51 crore after a day's breather, according to exchange data. Some concern also came as data showed growth in the index of industrial production (IIP) declined to a three-month low of 4.2 per cent in June from the upward revised figure of 6.2 per cent in the preceding month.
In afternoon session, index extended its losses, as investors remained cautious after a forecast by the Export-Import Bank of India (Exim Bank) showed that India’s merchandise exports growth may slow to 4.2 per cent year-on-year (Y-o-Y) in the September quarter of 2024-25 (FY25), down from 5.8 per cent in the June quarter. Traders overlooked report that India’s net direct tax collection, with refunds adjusted, grew 22.5 per cent to Rs 6.93 trillion between April 1 and August 11 of FY25. In the same period last year, tax collection was at Rs 5.65 trillion. Finally, index ended in deep red with losses of 208 points.
