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Nifty plunges over 1% ahead of US presidential elections

04 Nov 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Monday’s trading session with over percent cut, ahead of the US presidential elections on November 5 followed by the US Federal Reserve's monetary policy meeting scheduled for November 7 and 8.  After making a slightly positive start, soon index slipped into deep red, as traders were cautious with the exchange data showing that foreign institutional investors (FIIs) offloaded equities worth Rs 211.93 crore on Friday, according to exchange data. Sentiments remained down-beat as the RBI stated that India's forex reserves dropped by $3.463 billion to $684.805 billion in the week ended October 25. The overall reserves had dropped by $2.163 billion to $688.267 billion in the previous reporting week. In end-September, the reserves had hit an all-time high of $704.885 billion. 

Index remained under selling pressure in afternoon session, amid a private report stating that India’s economic growth likely moderated in July-September, primarily due to a slowdown in consumption and investment amid heavy monsoon rains in several parts of the country. Investors overlooked the report stated that India's manufacturing sector regained growth momentum in the month of October, fuelled by faster increases in total new orders and international sales. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 57.5 in October as against 56.5 in September, indicating a substantial and accelerated improvement in operating conditions. Finally, Nifty ended below 24,000 mark.

All the sectorial indices ended in red. The top gainers from the F&O segment were Info Edge (India), Punjab National Bank and Mahindra and Mahindra. On the other hand, the top losers Vodafone Idea, PVR INOX and Aditya Birla Fashion and Retail. In the index option segment, maximum OI continues to be seen in the 25900 - 26100 calls and 22900 - 23100 puts indicating this is the trading range expectation.

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