Bourses trade at day’s low points in late afternoon session

Mirroring weak global cues, Indian equity benchmarks traded at day’s low points in late afternoon session with increasing COVID-19 cases in China hurt the confidence of investors already nervous about the Russia-Ukraine war. The broader indices, the BSE Mid cap index and Small cap index were also trading into negative territory, falling over half a percent each. Metal, Energy, Oil & Gas and IT stocks witnessed hefty losses. Traders overlooked that Unemployment rate for persons of age 15 years and above in urban areas dipped to 12.6 per cent in April-June 2021 from 20.8 per cent in the same month of the previous year. On the global front, Asian markets were trading mostly in red as traders track developments in the Ukraine war and diplomatic efforts to bring the crisis to an end while Hong Kong took a pounding after China placed Shenzhen into lockdown, fuelling a rout in the tech sector. European markets were trading lower as new data revealed that UK workers have suffered their biggest pay squeeze in eight years.

The BSE Sensex is currently trading at 55632.57, down by 853.45 points or 1.51% after trading in a range of 55632.57 and 56720.60. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.83%, while Small cap index was down by 0.90%.

The only gaining sectoral indices on the BSE were Auto was up by 0.48%, while Metal down by 4.55%, Energy down by 2.82%, Oil & Gas down by 2.57%, IT down by 2.01% and PSU was down by 1.89% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.22%, Mahindra & Mahindra up by 1.86%, Asian Paints up by 0.91%, Titan Company up by 0.85% and Ultratech Cement up by 0.49%. On the flip side, Tata Steel down by 4.48%, Kotak Mahindra Bank down by 3.52%, Reliance Industries down by 2.81%, Infosys down by 2.63% and Tech Mahindra down by 2.42% were the top losers.

Meanwhile, with an aim to create a level playing field, the Reserve Bank of India (RBI) has allowed microfinance lenders to fix interest rates on loans with a rider that those should not be usurious for the borrowers. These directions shall be effective from April 01, 2022.

As per the RBI, each regulated entity (RE) should put in place a board-approved policy regarding pricing of microfinance loans. Interest rates and other charges/ fees on microfinance loans should not be usurious. These shall be subjected to supervisory scrutiny by the Reserve Bank.

The Reserve Bank of India further noted that each RE shall disclose pricing related information to a prospective borrower in a standardised simplified factsheet. Any fees to be charged to the microfinance borrower by the RE and/ or its partner/ agent shall be explicitly disclosed in the factsheet. The borrower shall not be charged any amount which is not explicitly mentioned in the factsheet.

Besides, the factsheet shall also be provided for other loans (i.e., collateralized loans) extended to borrowers from low-income households. There shall be no pre-payment penalty on microfinance loans. Penalty, if any, for delayed payment shall be applied on the overdue amount and not on the entire loan amount.

The CNX Nifty is currently trading at 16608.25, down by 263.05 points or 1.56% after trading in a range of 16601.75 and 16927.75. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Tata Consumer up by 4.44%, Maruti Suzuki up by 2.16%, Mahindra & Mahindra up by 1.82%, Cipla up by 1.55% and UPL up by 1.18%. On the flip side, Hindalco down by 5.55%, ONGC down by 5.12%, Tata Steel down by 4.78%, Coal India down by 4.46% and JSW Steel down by 4.02% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 1116.58 points or 5.72% to 18,415.08, Taiwan Weighted dropped 336.98 points or 1.95% to 16,926.06, Shanghai Composite declined 159.56 points or 4.95% to 3,063.97, Jakarta Composite lost 34.02 points or 0.49% to 6,918.18, KOSPI fell 24.12 points or 0.91% to 2,621.53 and Straits Times was down by 1.00 points or 0.03% to 3,231.03. On the flip side, Nikkei 225 was up by 38.63 points or 0.15% to 25,346.48.

European markets were trading lower, UK’s FTSE 100 decreased 98.25 points or 1.37% to 7,095.22, France’s CAC decreased 109.06 points or 1.71% to 6,260.88 and Germany’s DAX was down by 245.30 points or 1.76% to 13,683.81.