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Nifty ends flat on Tuesday

01 Oct 2024 Evaluate

Indian equity benchmark -- Nifty -- ended with minor losses on Tuesday. After making a cautious start of the day, soon market spiked up tracking broadly positive cues from global peers. However, index failed to protect its gains and turned negative as traders were worried after government data showed that the growth in production of eight key infrastructure sectors entered a negative zone after three-and-a-half years, contracting 1.8% in August 2024 due to decline in output of coal, crude oil, natural gas, refinery products, cement and electricity. Also, Reserve Bank of India said the country’s current account deficit widened marginally to $9.7 billion or 1.1% of GDP in April-June 2024, as against $8.9 billion or 1% in the year-ago period.

In afternoon session, market altered between positive and negative territories amid weak HSBC India Manufacturing PMI data. The HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell to 56.5 last month (September) from 57.5 in August - the weakest since January - and slightly below a preliminary estimate of 56.7. Growth in India's manufacturing industry cooled to an eight-month low in September as solid demand and output eased slightly. In late afternoon session, index continued to trade lackluster as traders avoided to take risk.

Traders were seen piling up positions in Media and IT stocks, while selling was witnessed in Oil & Gas, Realty and Bank. The top gainers from the F&O segment were National Aluminium Company, Balrampur Chini Mills and Polycab India. On the other hand, the top losers from the F&O segment were Indusind Bank, Jubilant FoodWorks and Muthoot Finance. In the index option segment, maximum OI continues to be seen in the 26900 - 27100 calls and 24950- 25150 puts indicating this is the trading range expectation.

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