Indian equity benchmark -- Nifty -- ended lower for second-straight session on Tuesday amid US President Donald Trump’s fresh tariff threats to India. Index made a negative start but soon index turned volatile and started wavering near neutral line with negative bias. Some concerns came as apex exporters' body Federation of Indian Export Organisations (FIEO) stated that beyond the existing 50 percent tariff, a further hike by the US, will badly hit Indian exports, particularly in traditional sectors of exports. Besides, traders avoided risky bids amid weekly F&O expiry. In late morning session, market extended its losses and maintained it till the end of the session. Sentiments remained pessimistic as India’s services sector growth moderated in December, as the rates of expansion in coming new work and output eased to the slowest in 11 months, and companies refrained from recruiting additional staff. The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 59.8 in November to 58.0 in December, indicating the slowest rate of expansion since January. Finally, index ended below 26,200 mark.
Traders were seen piling up positions in Pharma, PSU Bank and IT stocks, while selling was witnessed in Oil & Gas, Media and Chemicals. The top gainers from the F&O segment were Indian Energy Exchange, National Aluminium Company and Divi's Laboratories. On the other hand, the top losers were Trent, Kaynes Technology India and Reliance Industries. In the index option segment, maximum OI continues to be seen in the 26900 - 27100 calls and 25900 - 26100 puts indicating this is the trading range expectation.
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