Indian equity benchmark -- Nifty – ended Tuesday’s trading session with over half percent gains, ahead of the release of key US economic data later in the week that could impact the expectations regarding how quickly the US Fed will lower interest rates. Index made negative start and extended its losses to trade deep red amid weak earnings and ongoing foreign selling. In the 21 sessions of October, FIIs sold Indian equities worth Rs 1,03,470 crore. In afternoon session, index trimmed most of its losses, but traded just below its neutral line, as trades were concerned with private report stating that the Indian economy has entered a phase of 'cyclical growth slowdown' and the Reserve Bank's estimate of 7.2 per cent GDP expansion is 'overly optimistic'. However, in last leg of trade, index cut all its losses to turn positive, as traders got relief after the finance ministry in its September economic review said that favourable agricultural conditions coupled with expectations of a better harvest will likely push rural demand up in the coming months. While the monsoon has disrupted the supply of vegetables, affecting inflation, the ministry noted that a normal monsoon will likely improve prospects of a rabi output. Finally, index ended with gains of 127.70 points.
Traders were seen piling up positions in PSU Bank, and Financial Services stocks, while selling was witnessed in Auto, Pharma and Healthcare. The top gainers from the F&O segment were Federal Bank, Power Finance Corporation and Manappuram Finance. On the other hand, the top losers Maruti Suzuki India, Tata Motors and Vodafone Idea. 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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