Markets extend losses to trade in deep red

Indian equity benchmarks extended their losses in late morning session to trade in deep red. Negative cues from other Asian markets impacted domestic sentiments. In line with the larger peers, the broader indices were too trading in red terrain. Traders paid no heed towards reports that India has been ranked at the 116th position in the latest edition of the World Bank's annual Human Capital Index that benchmarks key components of human capital across countries. However, India's score increased to 0.49 from 0.44 in 2018, as per the Human Capital Index report released by the World Bank.

On the global front, Asian markets were trading lower, after Japan's central bank maintained its monetary policy easing as widely expected, on Thursday. The Policy Board of the Bank of Japan voted 8-1 to retain the interest rate at -0.1 percent on current accounts that financial institutions maintain at the central bank. The bank will continue to purchase necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

The BSE Sensex is currently trading at 39017.06, down by 285.79 points or 0.73% after trading in a range of 39005.69 and 39234.81. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.37%, while Small cap index was down by 0.46%.

The top gaining sectoral indices on the BSE were IT up by 0.44%, TECK up by 0.16% and Healthcare up by 0.15%, while Realty down by 1.77%, Metal down by 1.64%, Telecom down by 1.35%, Power down by 1.20% and Capital Goods down by 1.08% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Tech up by 2.19%, Infosys up by 0.93%, Asian Paints up by 0.70%, Tech Mahindra up by 0.61% and Titan Co up by 0.11%. On the flip side, Tata Steel down by 2.36%, ICICI Bank down by 1.69%, Power Grid down by 1.66%, Bajaj Finserv down by 1.47% and Bajaj Finance down by 1.41% were the top losers.

Meanwhile, the pace of deceleration in tax collections has slowed down with total tax mop-up touching Rs 2,53,532.3 crore during the period ending September 15, 2020, down 22.54% from Rs 3,27,320.2 crore during the period ending September 15, 2019. The numbers are provisional as banks are yet to update the final figures.

Of the total collection till September 15, when taxpayers, both individuals as well as companies, are supposed to pay advance tax for the quarter, personal income tax collection at the national level stood at Rs 1,47,004.6 crore and corporation tax mop-up at Rs 99,126.2 crore, totalling the two largest components of the tax kitty at Rs 2,46,130.8 crore.

During the first quarter ending June, gross tax collections had fallen by a steeper 31% to Rs 1,37,825 crore, driven down by a massive 76% plunge in advance tax mop-up, as the country was on a full lockdown due to the pandemic.

The CNX Nifty is currently trading at 11514.30, down by 90.25 points or 0.78% after trading in a range of 11511.65 and 11587.20. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 3.23%, Zee Entertainment up by 1.90%, HCL Tech up by 1.88%, Asian Paints up by 0.79% and Infosys up by 0.65%. On the flip side, Hindalco down by 3.73%, Tata Motors down by 2.97%, Tata Steel down by 2.35%, Shree Cement down by 2.32% and ICICI Bank down by 1.84% were the top losers.

Asian markets were trading lower; Taiwan Weighted dropped 107.06 points or 0.83% to 12,869.70, Nikkei 225 slipped 150.01 points or 0.64% to 23,325.52, Straits Times trembled 3.47 points or 0.14% to 2,501.68, KOSPI fell 30.26 points or 1.24% to 2,405.66, Shanghai Composite declined 32.45 points or 0.99% to 3,251.47, Jakarta Composite lost 11.05 points or 0.22% to 5,047.43 and Hang Seng decreased 397.96 points or 1.61% to 24,327.67.