Indices extend losses; Nifty dips below 17,200-mark

Indian equity benchmarks extended their opening losses and were trading over 2 percent lower in the morning session on heavy across-the-board selling amid a negative trend in global markets and unabated foreign fund outflows. Market participants remained cautious as a report by ICRA said that the Reserve Bank of India's revision of bad loan recognition and upgradation norms could bring a sharp spike in the non-performing assets of non-banking finance companies (NBFCs) in the country. Traders overlooked Moody's Investors Service stating that India's rising vaccination rate, stabilizing consumer confidence, low interest rates and higher public spending underpin positive credit fundamentals for the corporate sector. It also expects India's economic growth would rebound strongly with GDP expanding 9.3 per cent in the current fiscal ending March 2022 and 7.9 per cent in 2023. On the global front, Asian markets were trading in red as traders watched a surge in coronavirus cases in Europe and anti-disease controls that threaten to disrupt trade and travel.

The BSE Sensex is currently trading at 57550.80, down by 1244.29 points or 2.12% after trading in a range of 57548.28 and 58254.79. There were 1 stocks advancing against 29 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 2.14%, while Small cap index was down by 1.63%.

The lone gaining sectoral index on the BSE was Healthcare up by 1.25%, while Realty down by 4.75%, Metal down by 3.17%, Auto down by 3.09%, PSU down by 2.59% and Bankex down by 2.57% were the top losing indices on BSE.

The lone gainer on the Sensex was Dr. Reddy's Lab up by 2.46%. On the flip side, Maruti Suzuki down by 3.76%, Bajaj Finance down by 3.58%, Mahindra & Mahindra down by 3.57%, Bajaj Finserv down by 3.53% and Titan Co down by 3.51% were the top losers.

Meanwhile, Niti Aayog Vice-Chairman Rajiv Kumar has said the government is committed to improving the ease of doing business in the country.  He stated ‘It is now one of the commitments of this government to try and resolve and improve the ease of doing business on the ground.’

Further he stated the Prime Minister in his August 15 speech had said that the government wants to reduce the regulatory and compliance burden on businesses. He said unfortunately there are 67,000 compliance burden at present in the country if one looks at the Centre, states and municipal levels. He mentioned so far, 1,200 regulations have been removed and others are being looked into.

Besides, he said ‘We are in the business of actually making the life of our businessmen better and improving the living conditions of general people. We are committed to that and we will do it.’ According to him, the reforms undertaken by the government in the last seven years have been far bigger and larger than taken during 1989 to 1995. He added ‘From that basis we are saying that we have now laid foundation for the rapid growth for the years to come.’

The CNX Nifty is currently trading at 17158.60, down by 377.65 points or 2.15% after trading in a range of 17155.10 and 17355.40. There were 3 stocks advancing against 47 stocks declining on the index.

The top gainers on Nifty were Cipla up by 5.23%, Dr. Reddy's Lab up by 2.58% and Divi's Lab up by 1.09%. On the flip side, Tata Motors down by 5.02%, ONGC down by 4.03%, Hindalco down by 3.98%, Maruti Suzuki down by 3.72% and JSW Steel down by 3.66% were the top losers.

All the Asian markets were trading in red; Nikkei 225 slipped 833.34 points or 2.82% to 28,665.94, Jakarta Composite lost 96.26 points or 1.44% to 6,603.09, Hang Seng decreased 526.61 points or 2.13% to 24,213.55, Taiwan Weighted dropped 293.75 points or 1.66% to 17,360.44, Shanghai Composite declined 18.00 points or 0.5% to 3,566.18, Straits Times trembled 42.61 points or 1.32% to 3,178.91 and KOSPI fell 47.35 points or 1.59% to 2,932.92.