Markets extend fall; Sensex drops over 170 points

Indian equity benchmarks remained in bearish mood in late afternoon session to slide further, with Sensex plunging over 170 points, led by losses in Utilities, PSU and Auto stocks. Besides, the broader indices, BSE Midcap and Smallcap were also trading in red with losses of around 2 percent. sentiments remained downbeat with the report stating that India’s retail inflation is expected to have picked up slightly in July after cooling in the previous three months, but likely remained well below the central bank's 4 percent medium-term target. On the sectoral front, banking sector shares were trading lower with the Global credit rating agency, Care Ratings’ latest research report that the Indian banking industry continued to remain under pressure in the first quarter of current financial year because of slower pace in growth rate of credit and deposits, it added that the non performing assets (NPAs) also remained high as of June 2017.

On the global front, European markets were trading in red as investors monitored new corporate earnings and geopolitical tensions surrounding North Korea. Asian markets were also trading in red. Back home, in scrip specific development, National Peroxide edged higher after the company received its board’s approval for capacity expansion of its Hydrogen Peroxide Plant at Kalyan (on 50% w/w basis) from 95,000 tonnes per annum to 1,50,000 tonnes per annum. The company’s board gave approval for the same at the meeting held on August 9, 2017.

The BSE Sensex is currently trading at 31625.74, down by 172.10 points or 0.54% after trading in a range of 31588.26 and 31756.27. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.73%, while Small cap index was down by 2.02%.

The only gaining sectoral indices on the BSE were IT up by 0.62% and TECK up by 0.28%, while Utilities down by 2.46%, Auto down by 2.42%, Industrials down by 2.35%, PSU down by 2.31% and Power down by 2.28% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.50%, Hero MotoCorp up by 0.56%, Tata Steel up by 0.50%, Wipro up by 0.49% and Bharti Airtel up by 0.44%. On the flip side, Tata Motors down by 7.98%, Tata Motors - DVR down by 6.77%, Sun Pharma down by 3.33%, Power Grid Corporation down by 2.73% and Adani Ports & SEZ down by 2.25% were the top losers.

Meanwhile, global credit rating agency, Care Ratings in its latest research report on ‘Performance of banks’ has said that the Indian banking industry continued to remain under pressure in the first quarter of current financial year (Q1FY18) because of slower pace in growth rate of credit and deposits, it added that the non performing assets (NPAs) also remained high as of June 2017.

The report stated that , growth in bank credit to agriculture and allied activities, services, industry and retail sector (personal loans) was lower as of June 2017 as against the same period in the previous year, while credit growth to manufacturing also remained sluggish, continuing to be negative. However, the agency found that the banks registered healthy other income in Q1FY18, driven by their profit in treasuries, while the net profits of the banks also witnessed growth.

Care Ratings further noted that overall volume of bank’s business has still to pick up which will depend on the economy of the country. Besides, the agency found public sector banks are more stressed than private banks and said that gross NPAs’ growth lowered in the first quarter of FY18 as against same period in previous year, increasing by 25.8%.

The CNX Nifty is currently trading at 9842.40, down by 65.65 points or 0.66% after trading in a range of 9835.95 and 9892.65. There were 15 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 3.26%, Infosys up by 1.51%, Hero MotoCorp up by 0.76%, Tata Steel up by 0.69% and Larsen & Toubro up by 0.67%. On the flip side, Tata Motors down by 7.69%, Tata Motors - DVR down by 6.71%, GAIL India down by 4.76%, BPCL down by 3.88% and Eicher Motors down by 3.86% were the top losers.

Asian markets were trading in red; Hang Seng decreased 313.09 points or 1.13% to 27,444.00, Taiwan Weighted decreased 140.64 points or 1.34% to 10,329.74, Shanghai Composite decreased 13.82 points or 0.42% to 3,261.75, Nikkei 225 decreased 8.97 points or 0.05% to 19,729.74, KOSPI Index decreased 8.92 points or 0.38% to 2,359.47, Jakarta Composite decreased 7.23 points or 0.12% to 5,816.77 and FTSE Bursa Malaysia KLCI decreased 1.37 points or 0.08% to 1,776.57.

European markets were trading in red; UK’s FTSE 100 decreased 57.24 points or 0.76% to 7,440.82, Germany’s DAX decreased 35.68 points or 0.29% to 12,118.32 and France’s CAC decreased 12.06 points or 0.23% to 5,133.64.