Markets continue to trade southward; Sensex breaches 59,500 mark

Indian equity benchmarks continue to trade southward in morning deals with frontline gauges tumbling below their crucial 59,500 (Sensex) and 17,700 (Nifty) levels on sustained selling by funds and retail investors amid weak Asian cues. The sentiment mainly dented as concerns about the increasing cases of the Omicron variant of COVID-19 persisted among investors globally. Some concern also came with ICRA Ratings warned that the third wave of the pandemic is likely to shave 40 bps off the fourth quarter Gross Domestic Product (GDP) growth that may print in at 4.5-5 per cent. It said third wave of the pandemic has seen a massive spike in infections after the more infectious Omicron variant of the coronavirus appeared. Sectorally, Sugar industry’s stocks remained in focus as the Centre issued guidelines for restructuring of loans taken by mills from the Sugar Development Fund (SDF), providing a moratorium for two years and then repayment in five years to eligible defaulting factories. On the global front, Asian markets were trading mostly in red, following the negative cues overnight from Wall Street, as traders digested the U.S. Fed's monetary policy minutes, which indicated the US Fed is preparing to begin reducing the size of its balance sheet soon after raising interest rates.

The BSE Sensex is currently trading at 59414.55, down by 808.60 points or 1.34% after trading in a range of 59352.17 and 59781.86. There were 2 stocks advancing against 28 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.66%, while Small cap index was down by 0.35%.

The only gaining sectoral index on the BSE was Telecom up by 0.52%, while  Realty down by 1.72%, IT down by 1.55%, Energy down by 1.45%, TECK down by 1.31% and Bankex down by 1.25% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 0.91% and Bharti Airtel up by 0.54%. On the flip side, HDFC down by 2.03%, NTPC down by 1.93%, HCL Technologies down by 1.85%, HDFC Bank down by 1.84% and Infosys down by 1.84% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has released the eligibility criteria for entities to be categorised as 'Specified User' of Credit Information Companies (CICs). RBI said the criteria sets out the requirements for the entities to become eligible as Specified User of CIC under the Credit Information Companies (Amendment) Regulations, 2021. As per the requirements, a 'specified user' should be a company incorporated in India or a statutory corporation established in the country.

It stated the governing statute of the Statutory Corporation or Memorandum of Association of the Company, as the case may be, should allow the business/activity of processing of information for the support or benefit of credit institutions. Also, the company should have a net worth of not less than Rs 2 crore as per the latest audited balance sheet, and should meet the requirement on a continuing basis. The ownership of the company shall be well diversified, as per the eligibility criteria.

Further, in case the entity is a company, it should have not less than three years of experience in running the business/activity of processing information for the support or benefit of credit institutions and shall have a clean track record. Also, the company, its promoter(s) and director(s) should not have been convicted of any offence involving moral turpitude or any economic offence. Besides, the entity should have a certification from CISA certified auditor that it has a robust and secure information technology (IT) system in place for preserving and protecting the data relating to the credit information.

The CNX Nifty is currently trading at 17697.10, down by 228.15 points or 1.27% after trading in a range of 17671.95 and 17797.95. There were 6 stocks advancing against 44 stocks declining on the index.

The top gainers on Nifty were UPL up by 2.03%, Hindalco up by 1.56%, Maruti Suzuki up by 0.83%, Bajaj Auto up by 0.70% and Bharti Airtel up by 0.54%. On the flip side, Adani Ports &SEZ down by 2.93%, HDFC down by 2.10%, Reliance Industries down by 1.91%, HDFC Bank down by 1.86% and Infosys down by 1.83% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 786.71 points or 2.68% to 28,545.45, Taiwan Weighted dropped 206.91 points or 1.12% to 18,293.05, Hang Seng decreased 82.65 points or 0.36% to 22,824.60, Jakarta Composite lost 52.62 points or 0.79% to 6,609.68, KOSPI fell 29.68 points or 1% to 2,924.29 and Shanghai Composite declined 5.68 points or 0.16% to 3,589.50.

On the flip side, Straits Times advanced 16.51 points or 0.52% to 3,179.95