Bourses trim losses in late afternoon session

The Indian equity benchmarks trimmed some of their losses, but continued to trade in red in late afternoon session ahead of domestic and U.S. inflation data due later in the day. The broader indices, the BSE Mid cap index and Small cap index were trading with considerable looses. Losses got restricted after Union Minister of Commerce and Industry Piyush Goyal stated that new Economic Cooperation and Trade Agreements with Australia and UAE would open infinite opportunities for Textiles, Handloom, Footwear etc. He said that Indian textile exports to Australia and UAE would now face zero duty and expressed confidence that soon Europe, Canada, UK and GCC countries would also welcome Indian textile exports at zero duty. On the global front, Asian markets were trading mixed as rising bond yields weighed on growth stocks ahead of crucial U.S. inflation data and the ECB policy meeting. European markets were trading lower, as traders monitored heavy selling in the banking sector.

The BSE Sensex is currently trading at 58659.85, down by 304.72 points or 0.52% after trading in a range of 58298.57 and 58743.50. 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 1.43%, while Small cap index was down by 1.51%.

The few gaining sectoral indices on the BSE were Bankex up by 0.46%, Power up by 0.36% and Utilities was up by 0.34%, while Metal down by 3.73%, Realty down by 2.86%, Energy down by 2.41%, Oil & Gas down by 2.25%, Basic Materials down by 2.13% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 1.29%, Axis Bank up by 1.02%, Power Grid up by 0.91%, Maruti Suzuki up by 0.89% and ICICI Bank up by 0.76%. On the flip side, Tata Steel down by 3.50%, Larsen & Toubro down by 2.09%, Tech Mahindra down by 1.96%, Wipro down by 1.77% and Bharti Airtel down by 1.54% were the top losers.

Meanwhile, keeping in view the principles of proportionality, Reserve Bank of India (RBI) has introduced certain principles, standards and procedures for mid and large non-banking financial companies (NBFCs). The revised regulatory framework for NBFCs, issued in October 2021, had indicated that such entities in the Upper Layer (NBFC-UL) and Middle Layer (NBFC-ML) would be required to have an independent Compliance Function and a Chief Compliance Officer (CCO).

As per the latest notification released by the RBI, NBFCs in the upper layer and middle layer should treat the prescriptions in the circular as a set of minimum guidelines only and accordingly frame their guidelines taking into account their corporate governance framework, the scale of operations, risk profile and organisational structure, among other factors,

Besides, RBI said that compliance function should ensure strict observance of all statutory and regulatory requirements for the NBFCs, including standards of market conduct, managing conflict of interest, treating customers fairly and ensuring the suitability of customer service.

The CNX Nifty is currently trading at 17549.35, down by 125.60 points or 0.71% after trading in a range of 17442.35 and 17594.40. There were 10 stocks advancing against 39 stocks declining on the index, while 1 stock remain unchanged. 

The top gainers on Nifty were Kotak Mahindra Bank up by 1.27%, Axis Bank up by 1.00%, Power Grid up by 0.93%, Maruti Suzuki up by 0.81% and ICICI Bank up by 0.77%. On the flip side, Hindalco down by 5.41%, Coal India down by 4.74%, Tata Steel down by 3.47%, Tata Motors down by 2.98% and Grasim Industries down by 2.71% were the top losers.

Asian markets were trading mixed, Nikkei 225 slipped 486.54 points or 1.81% to 26,334.98, Taiwan Weighted dropped 57.46 points or 0.34% to 16,990.91, Straits Times trembled 29.37 points or 0.87% to 3,334.19 and KOSPI was down by 26.34 points or 0.98% to 2,666.76. On the flip side, Jakarta Composite soared 10.99 points or 0.15% to 7,214.78, Shanghai Composite gained 46.20 points or 1.46% to 3,213.33 and Hang Seng was up by 110.83 points or 0.52% to 21,319.13.

European markets were trading lower, UK’s FTSE 100 decreased 44.87 points or 0.59% to 7,573.44, France’s CAC decreased 76.89 points or 1.17% to 6,478.92 and Germany’s DAX was down by 183.89 points or 1.3% to 14,008.89.