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Nifty ends with sharp cut; plunges over 2%

03 Oct 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Thursday’s trading session near day’s low point, amid rising tensions in the Middle East. Index made a gap down opening, as the foreign institutional investors (FIIs) extended their selling as they sold equities worth Rs 5,579 crore on October 1. Some cautiousness came as the Sebi’s six-step plan to curb retail participation in speculative index derivatives may lead to a substantial drop in volumes - potentially by 30-40 per cent. Some pessimism came as goods and services tax (GST) revenue growth rate declined to 6.5 per cent in September at Rs 1.73 lakh crore as the rise in collections from domestic transactions as well as imports slowed. In August 2024, the mop-up was Rs 1.75 lakh crore. 

In afternoon session, index extended its losses to trade near day’s low point, as traders remained cautious after a labour ministry statement said that retail inflation for industrial workers inched up marginally to 2.44 per cent in August against 2.15 per cent in July this year. The All-India CPI-IW (Consumer Price Index-Industrial Workers) for August 2024 decreased by 0.1 points and stood at 142.6 points. Traders got cautious amid a private report that the escalating tension in the Middle East, following Iran’s missile attack on Israel, can disrupt oil supply. No wonder, oil prices spiked after the news of Iran’s military operation broke out. There is fear that the regional conflict may snowball into a wider war which can alter the trajectory of interest rates globally. Finally, index ended with losses of 546.80 points and settled below 25300 mark.

All the sectorial indices ended in red. The top gainers from the F&O segment were Petronet LNG, Granules India and JSW Steel. On the other hand, the top Hindustan Petroleum Corporation, Godrej Properties and Dabur India. In the index option segment, maximum OI continues to be seen in the 25900 - 26100 calls and 25900 - 26100 puts indicating this is the trading range expectation.

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