Key indices remain in red in morning deals

Indian equity benchmarks continued to trade in red terrain in morning deals mainly dragged by Oil & Gas, Banking and Metal stocks amid largely weak cues from their Asian peers. Sentiments remained downbeat with a domestic rating agency ICRA stating that nearly a third of loans by NBFCs are in risky segments, and the already elevated non-performing assets ratio for such lenders are expected to rise by up to 1 percent in FY22 due to the impact of the second COVID-19 wave. However, losses remain capped as traders found some solace with Federation of Indian Exports Organisation (FIEO) stating that the 'little ambitious' exports target of $400 billion for the current fiscal is achievable but it requires aggressive marketing strategy and venturing into new markets. FIEO President A Sakthivel also said that free trade agreements with countries including UK, Europe, Australia, and the US would help further push the country's exports. On the global front, Asian markets were trading mostly in red on concerns new coronavirus outbreaks in the region could undercut an economic recovery even as robust momentum in the United States prompts the Federal Reserve to contemplate a quicker exit from accommodative policy.

The BSE Sensex is currently trading at 52601.73, down by 133.86 points or 0.25% after trading in a range of 52552.41 and 52816.42. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.12%, while Small cap index was up by 0.29%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.47%, Utilities up by 0.39%, FMCG up by 0.23%, Consumer Durables up by 0.23% and Realty up by 0.19%, while Oil & Gas down by 0.84%, Bankex down by 0.71%, Metal down by 0.65%, Auto down by 0.42% and Basic Materials down by 0.31% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Co up by 0.86%, Power Grid Corp up by 0.69%, Reliance Industries up by 0.35%, TCS up by 0.33% and Larsen & Toubro up by 0.31%. On the flip side, Mahindra & Mahindra down by 1.16%, ICICI Bank down by 1.15%, Bajaj Auto down by 1.09%, Maruti Suzuki down by 1.02% and Kotak Mahindra Bank down by 0.96% were the top losers.

Meanwhile, in a bid to help revival of the economy battered by coronavirus disease (covid-19) pandemic, Finance Minister Nirmala Sitharaman has announced a slew of measures, including Rs 1.1 lakh crore credit guarantee scheme for improving health infrastructure, and enhancing the limit under the ECLGS by 50 per cent to Rs 4.5 lakh crore for the MSME sector facing liquidity crunch. She said this comprises eight relief measures and other eight measures to support the economic growth.

She announced Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors, including health sector, which includes guarantee cover for expansion or for new projects. Besides, she said, additional Rs 1.5 lakh crore limit enhancement done for Emergency Credit Line Guarantee Scheme (ECLGS) scheme. The existing limit for ECLGS scheme, announced as part of Rs 20-lakh crore Atmanirbhar Bharat Abiyan package in May 2020, was Rs 3 lakh crore. Last month, the finance ministry expanded the scope of the Rs 3 lakh crore ECLGS by including concessional loans to hospitals for setting up on-site oxygen generation plants.

Besides, the validity of the scheme was extended by three months to September 30 and or till guarantees for an amount of Rs 3 lakh crore are issued. The last date of disbursement under the scheme has been extended to December 31. Under the ECLGS 4.0, 100 per cent guarantee cover was given to loans up to Rs 2 crore to hospitals, nursing homes, clinics, medical colleges for setting up on-site oxygen generation plants. The interest rate on these loans has been capped at 7.5 per cent, which means the banks can offer loans less than this ceiling.

The CNX Nifty is currently trading at 15772.70, down by 42.00 points or 0.27% after trading in a range of 15756.30 and 15835.90. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Wipro up by 0.92%, Titan Co up by 0.80%, Divi's Lab up by 0.63%, SBI Life Insurance up by 0.57% and Power Grid Corp up by 0.54%. On the flip side, ONGC down by 1.47%, Mahindra & Mahindra down by 1.30%, Hindalco down by 1.24%, Britannia Industries down by 1.18% and ICICI Bank down by 1.16% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 263.13 points or 0.91% to 28,784.89, Hang Seng decreased 225.28 points or 0.77% to 29,043.02, Shanghai Composite declined 34.10 points or 0.95% to 3,572.27, Straits Times trembled 30.45 points or 0.97% to 3,096.43 and KOSPI fell 22.31 points or 0.68% to 3,279.58.

On the flip side, Jakarta Composite soared 17.86 points or 0.3% to 5,957.33 and Taiwan Weighted strengthened 35.86 points or 0.2% to 17,626.83.