Local equity markets have magnified their losses in late afternoon deals, hovering near the lowest points of the day on account of selling in frontline counters. Traders remain concerned after rating agency Crisil in its latest report has said that gross non-performing assets (NPAs) of Indian banks may rise to 8-9 percent in the current financial year (FY22) but this will be much below the FY18 levels when NPAs reached a peak of 11.2 percent. Traders overlooked that citing moderate deterioration of asset quality since the onset of the pandemic and likely pick-up in credit growth with economic recovery, credit rating agency Moody’s Investors Service in its latest report has raised the outlook for the Indian banking system to ‘stable’ from ‘negative’. On the global front, Asian markets were trading mixed after Wall Street advanced on strong corporate earnings and Japanese exports weakened. European markets were trading mostly in red after euro area current account surplus declined sharply in August. The current account surplus fell to EURO 13 billion in August from EURO 23 billion in July.
The BSE Sensex is currently trading at 61245.86, down by 470.19 points or 0.76% after trading in a range of 61213.39 and 61880.36. There were 7 stocks advancing against 23 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index declined 2.33%, while Small cap index was down by 2.60%.
The only gaining sectoral indices on the BSE were Telecom up by 1.73%, while Consumer Durables down by 3.33%, Basic Materials down by 2.77%, Utilities down by 2.60%, Consumer Discretionary down by 2.56% and Metal was down by 2.45% were the top losing indices on BSE.
The top gainers on the Sensex were Bharti Airtel up by 2.61%, SBI up by 2.02%, Axis Bank up by 0.66%, Tech Mahindra up by 0.38% and ITC up by 0.35%. On the flip side, Bajaj Finserv down by 3.09%, Titan Company down by 2.90%, Power Grid down by 2.34%, Hindustan Unilever down by 2.13% and Bajaj Auto down by 2.06% were the top losers.
Meanwhile, citing moderate deterioration of asset quality since the onset of the pandemic and likely pick-up in credit growth with economic recovery, credit rating agency Moody’s Investors Service in its latest report has raised the outlook for the Indian banking system to ‘stable’ from ‘negative’.
According to the report, the quality of corporate loans has improved, indicating that banks have recognized and provisioned for all legacy problem loans in this segment. The quality of retail loans has deteriorated, but to a limited degree because large-scale job losses have not occurred.
Besides, the rating agency assumes that the government will provide a very high level of support for rated public sector banks, given their strong links to the government. On the economic growth front, Moody’s expects India’s economy to continue to recover in the next 12-18 months, with GDP growing 9.3 per cent in the fiscal year ending March 2022 and 7.9 per cent in the following year.
The CNX Nifty is currently trading at 18254.30, down by 164.45 points or 0.89% after trading in a range of 18241.80 and 18458.30. There were 8 stocks advancing against 41 stocks declining on the index, while 1 stock remains unchanged.
The top gainers on Nifty were Bharti Airtel up by 2.59%, SBI up by 2.09%, Axis Bank up by 0.60%, ITC up by 0.43% and Tech Mahindra up by 0.39%. On the flip side, Hindalco down by 3.67%, Bajaj Finserv down by 3.09%, BPCL down by 3.05%, Titan Company down by 2.88% and Coal India down by 2.74% were the top losers.
Asian markets were trading mixed, KOSPI fell 15.91 points or 0.53% to 3,013.13, Taiwan Weighted dropped 12.85 points or 0.08% to 16,887.82 and Shanghai Composite was down by 6.15 points or 0.17% to 3,587.00. On the flip side, Straits Times advanced 0.63 points or 0.02% to 3,199.64, Nikkei 225 surged 40.03 points or 0.14% to 29,255.55 and Hang Seng was up by 348.81 points or 1.35% to 26,136.02.
European markets were trading mostly in red, UK’s FTSE 100 decreased 17.74 points or 0.25% to 7,199.79 and France’s CAC was down by 13.82 points or 0.21% to 6,656.03. On the flip side, Germany’s DAX was up by 15.99 points or 0.1% to 15,531.82.
