Bourses trade near day's low points in late afternoon session

Indian equity markets traded near day's low points in late afternoon session amid weakness across most global markets. Losses in financial, IT and FMCG shares pulled the headline indices lower. The broader indices, the BSE Mid cap index and Small cap index were also trading in red. Traders were cautious after ratings agency ICRA in its latest report has said that states are shelling out more for debt funds, with the weighted average cost for their debt auctions hardening by 9 basis points (bps) to touch 7.24 per cent, the highest level so far this fiscal, during the auctions on January 18, 2022. Compared to the previous week, the cost has gone up by 9 bps. From the first auctions in January, the cut-offs have been trending over 7 per cent. In scrip specific development, Bajaj Finance has reported a rise of 85.46% in its net profit at Rs 2,125.29 crore for third quarter ended December 31, 2021 as compared to Rs 1,145.98 crore for the same quarter in the previous year.

On the global front, Asian markets were trading mostly in red as U.S. Treasury yields hit fresh two-year highs and a global technology stock sell-off unsettled investors worrying about inflation and bracing for tighter U.S. monetary policy. European markets were trading mostly in red as U.S. Treasury yields hit new highs, while luxury stocks stood out on upbeat trading updates from Richemont and Burberry.

The BSE Sensex is currently trading at 60066.38, down by 688.48 points or 1.13% after trading in a range of 59949.22 and 60870.17. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.64%, while Small cap index was down by 0.19%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.46%, PSU up by 0.41%, Auto up by 0.31%, Metal up by 0.29% and Utilities was up by 0.22%, while IT down by 1.76%, TECK down by 1.62%, Realty down by 1.09%, Telecom down by 1.07%, Bankex down by 0.91% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 0.96%, Maruti Suzuki up by 0.80%, Axis Bank up by 0.52%, Dr. Reddy's Lab up by 0.21% and Mahindra & Mahindra up by 0.17%. On the flip side, Asian Paints down by 2.71%, Hindustan Unilever down by 2.34%, Infosys down by 2.30%, Ultratech Cement down by 1.99% and Wipro down by 1.93% were the top losers.

Meanwhile, expressing some concerns about the AUM growth of housing finance companies, credit rating agency, Crisil Ratings in its latest report has said that disruptions due to the third COVID wave could shave off as much as 200 basis points from the growth in assets under management (AUM) of housing finance companies in the current and next financial years.

According to the report, growth would still be higher compared with average of around two per cent over fiscals 2020 and 2021 though slower than the broad-based 24 per cent logged between fiscals 2011 and 2019. Of the total Housing Finance Companies' (HFCs) AUM of Rs 13.2 lakh crore as on March 31, 2021, home loans were the largest segment (71 per cent) followed by wholesale loans (18 per cent) and Loans Against Property (11 per cent).

The credit rating agency Crisil also noted that home loans will be the fastest-growing segment as lenders continue to be selective in the non-housing segment, comprising wholesale and LAP (Loan Against Property) loans.

The CNX Nifty is currently trading at 17923.05, down by 190.00 points or 1.05% after trading in a range of 17884.90 and 18129.20. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were ONGC up by 3.27%, Coal India up by 1.59%, Tata Motors up by 1.44%, UPL up by 1.22% and Tata Steel up by 1.18%. On the flip side, Asian Paints down by 2.82%, Shree Cement down by 2.61%, Adani Ports down by 2.53%, Hindustan Unilever down by 2.43% and Grasim Industries down by 2.41% were the top losers.

Asian markets were trading mostly in red, Nikkei 225 slipped 790.02 points or 2.8% to 27,467.23, Taiwan Weighted dropped 151.18 points or 0.82% to 18,227.46, Jakarta Composite lost 22.08 points or 0.33% to 6,591.98, KOSPI fell 21.96 points or 0.77% to 2,842.28, Shanghai Composite declined 11.73 points or 0.33% to 3,558.18 and Straits Times was down by 3.24 points or 0.1% to 3,276.80. On the flip side, Hang Seng was up by 15.07 points or 0.06% to 24,127.85.

European markets were trading mostly in red, UK’s FTSE 100 decreased 4.76 points or 0.06% to 7,558.79 and Germany’s DAX was down by 45.85 points or 0.29% to 15,726.71. On the flip side, France’s CAC was up by 8.97 points or 0.13% to 7,142.80.