Sensex, Nifty remain lower in late morning session

Indian equity benchmarks remained lower in late morning session, with both Sensex and Nifty trading in red terrain. Negative cues from other Asian markets impacted domestic sentiments. Traders were seen taking a note of reports that the Controller General of Accounts (CGA) in its latest data has said that the government's fiscal deficit stood at Rs 4.68 lakh crore or 31.1 per cent of the Budget estimates at the end of August 2021. Besides, Former Reserve Bank of India (RBI) Governor D Subbarao has stressed on the need to accelerate India’s economic growth rate and make sure that this benefit of growth is shared, even as he said that unemployment has taken a form of ‘crisis’ in the country. Subbarao further said the organised sector is shedding jobs and the labour force is moving from high productive sector to the unorganised sector.

On the global front, Asian markets were trading in red, after Indonesia's consumer prices increased to the highest in four months in September. The data from the statistics bureau showed that consumer prices rose 1.6 percent year-on-year in September, following a 1.59 percent increase in August. The latest inflation was the highest since May, when it was 1.68 percent.

The BSE Sensex is currently trading at 58750.36, down by 376.00 points or 0.64% after trading in a range of 58571.47 and 58890.08. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.11%, while Small cap index was up by 0.39%.

The top gaining sectoral indices on the BSE were Metal up by 1.20%, Basic Materials up by 0.59%, Oil & Gas up by 0.46%, Energy up by 0.43% and PSU up by 0.18%, while Telecom down by 1.17%, Realty down by 1.05%, Auto down by 0.67%, FMCG down by 0.58% and Bankex down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.03%, Tata Steel up by 1.50%, Reliance Industries up by 0.51%, Ultratech Cement up by 0.50% and Bajaj Auto up by 0.31%. On the flip side, Bajaj Finserv down by 2.96%, Maruti Suzuki down by 2.49%, Asian Paints down by 2.11%, Bharti Airtel down by 2.03% and HDFC down by 1.99% were the top losers.

Meanwhile, amid the COVID-19 pandemic and elevated level of inflation, the government has kept the interest rates on small savings schemes, including NSC and PPF, unchanged for the third quarter of 2021-22. Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 7.1 per cent and 6.8 per cent, respectively.

The finance ministry said ‘The rates of interest on various small savings schemes for the third quarter of the financial year 2021-22 starting from October 1, 2021, and ending on December 31, 2021, shall remain unchanged from the current rates applicable for the second quarter (June 1, 2021 to September 30, 2021) for FY 2021-22’.

Uttar Pradesh is the second highest contributor to the small savings schemes after West Bengal. During the West Bengal assembly elections earlier this year, the Centre decided to reduce the interest rate on these schemes. However, the very next day on April 1, the finance ministry revoked the steep interest rate cut of up to 1.1 per cent, citing an oversight.

The CNX Nifty is currently trading at 17518.65, down by 99.50 points or 0.56% after trading in a range of 17452.90 and 17551.95. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 2.34%, Mahindra & Mahindra up by 2.05%, Tata Steel up by 1.33%, ONGC up by 0.97% and Coal India up by 0.78%. On the flip side, Bajaj Finserv down by 2.99%, Maruti Suzuki down by 2.52%, Asian Paints down by 2.12%, Bharti Airtel down by 2.12% and HDFC down by 1.96% were the top losers.

Asian markets were trading in red; Nikkei 225 slipped 712.40 points or 2.42% to 28,740.26, Taiwan Weighted dropped 413.54 points or 2.44% to 16,521.23, Jakarta Composite lost 50.81 points or 0.81% to 6,236.13, KOSPI fell 50.45 points or 1.64% to 3,018.37 and Straits Times trembled 35.42 points or 1.15% to 3,051.28.