Benchmarks trade in red in early deals amid global sell-off

Indian equity benchmarks made gap-down opening on Thursday tracking sell-off in the global markets. Domestic markets are trading lower with cut of around 0.70% each in early deals. Selling in Healthcare, Bankex and IT stocks weighted down on the indices. Traders were concerned as India recorded 11,752 fresh cases of the coronavirus disease (Covid-19). The caseload tally stands at 10,702,031. Globally, more than 101.4 million people have been infected by the virus. The country continues to be second-most-affected globally, and ranks 14th among worst-hit nations by active cases. The five most affected states by total cases are Maharashtra (2,013,353), Karnataka (936,955), Kerala (899,932), Andhra Pradesh (887,238), and Tamil Nadu (835,803). However, losses remained capped with the Ministry of Commerce and Industry’s statement that foreign direct investment (FDI) inflows from April to November 2020 have increased by 22 percent (YoY) to $58.37 billion - the highest for the first 8 months of any fiscal.

On the global front, all the Asian markets were trading lower following the overnight sell-off on Wall Street amid concerns about excessive stock valuations and as the Federal Reserve noted that the pace of the economic recovery in the U.S. has moderated in recent months. In its first monetary policy decision of the New Year, the Fed left interest rates unchanged as widely expected and revealed it plans to maintain its asset purchase program at the current pace.

Back home, aviation industry stocks were in focus with report that the Ministry of Civil aviation has further extended the ban on all flights between Indian and UK till February 14. This was done to prevent the spread of the new strain of coronavirus going around in the UK. In scrip specific development, Axis Bank gained despite reporting a 36% year-on-year drop in its December profit to Rs 1,117 crore, missing estimates as the private lender made higher provisions for bad loans.

The BSE Sensex is currently trading at 47116.60, down by 293.33 points or 0.62% after trading in a range of 46821.21 and 47172.02. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.36%, while Small cap index was down by 0.28%.

The top gaining sectoral indices on the BSE were Energy up by 0.76%, Telecom up by 0.74%, Oil & Gas up by 0.28%, Consumer Durables up by 0.06%, Capital Goods up by 0.03%, while Healthcare down by 0.97%, Bankex down by 0.95%, IT down by 0.85%, Metal down by 0.84%, Utilities down by 0.82% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.49%, Reliance Industries up by 0.89%, ONGC up by 0.67%, Bharti Airtel up by 0.58% and Bajaj Finance up by 0.36%. On the flip side, Tech Mahindra down by 2.52%, HDFC Bank down by 2.34%, Power Grid down by 2.21%, Sun Pharma down by 2.02% and Kotak Mahindra Bank down by 1.74% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has put in place a comprehensive framework for strengthening the grievance redress mechanism in banks. The framework comprises enhanced disclosures on complaints to be made by the banks; recovery of the cost of redress of maintainable complaints from the banks against whom the number of complaints received in the Offices of Banking Ombudsman (OBOs) are in excess of their peer group averages; and intensive review by RBI of the grievance redress mechanism.

The framework intends to, inter-alia, provide greater insight into the volume and nature of complaints received by the banks as also the quality and turnaround time of redressal, promote satisfactory customer outcomes and improved customer confidence, and identify remedial steps to be taken by the banks having persisting issues in grievance redress mechanism. 

As per the framework, the redress of complaints will continue to be cost-free for the customers of banks and members of public. RBI will undertake, as a part of its supervisory mechanism, annual assessments of customer service and grievance redress in banks based on the data and information available through the Complaint Management System, and other sources and interactions. The central bank has taken various initiatives over the years for improving customer service and grievance redress mechanism in banks.

The CNX Nifty is currently trading at 13869.40, down by 98.10 points or 0.70% after trading in a range of 13794.20 and 13898.25. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 1.30%, Reliance Industries up by 1.12%, BPCL up by 0.71%, ONGC up by 0.61% and Hero MotoCorp up by 0.49%. On the flip side, Tech Mahindra down by 2.78%, HDFC Bank down by 2.38%, Power Grid down by 2.18%, UPL down by 1.92% and Kotak Mahindra Bank down by 1.91% were the top losers.

All the Asian markets were trading in red; Nikkei slipped 367.68 points or 1.28% to 28,267.53, Straits Times fell 36.57 points or 1.24% to 2,922.06, Hang Seng declined 628.94 points or 2.15% to 28,668.59, Taiwan Weighted weakened 325.94 points or 2.08% to 15,375.51, KOSPI lost 53.98 points or 1.73% to 3,068.58, Jakarta Composite dropped 78.42 points or 1.28% to 6,030.75 and Shanghai Composite was down by 53.06 points or 1.48% to 3,520.28.