Benchmarks continue to trade in red in morning deals

Indian equity benchmarks continued to trade in red in morning deals, amid weakness across global markets. Traders remained cautious as Crisil Research said that India Inc is staring at the third consecutive quarter of a year-on-year drop in profit margins for the April-June 2022 period. It added that operating profit margins have likely fallen by 2-3 percentage points for the June quarter as compared to the year-ago period. Some concern also came as exchange data showed foreign institutional investors (FIIs) remained net sellers on Monday as they offloaded shares worth Rs 170.51 crore. Market participants also remained on sidelines ahead of the industrial growth for May and retail inflation figures for June to be out later in the day. Meanwhile, the Reserve Bank asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency. On the global front, Asian markets are trading mostly in red amid worries that an energy crisis in Europe and China's COVID woes will tip the U.S. and Europe into a recession.

The BSE Sensex is currently trading at 54188.01, down by 207.22 points or 0.38% after trading in a range of 54054.47 and 54230.69. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.15%, while Small cap index up by 0.15%.

The top gaining sectoral indices on the BSE were Utilities up by 1.89%, Power up by 1.83%, Telecom up by 1.73%, Oil & Gas up by 0.52% and Energy up by 0.39%,, while Metal down by 1.54%, Basic Materials down by 0.71%, FMCG down by 0.49%, Consumer Durables down by 0.46% and Consumer Discretionary down by 0.43% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.01%, Bharti Airtel up by 0.74%, Dr. Reddy's Lab up by 0.54%, Axis Bank up by 0.45% and TCS up by 0.25%. On the flip side, Tata Steel down by 1.61%, Titan Company down by 1.57%, Asian Paints down by 1.27%, HCL Technologies down by 1.20% and HDFC down by 1.20% were the top losers.

Meanwhile, Icra Ratings in its latest report has said that securitisation volumes originated by Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) have almost doubled to around Rs 33,000 crore in the first quarter of the current financial year (Q1FY23). The growth in volumes reflects a 1.9 times increase when compared to Rs 17,200 crore of securitised assets in Q1 FY22 and a 4.4 times increase compared to Rs 7,500 crore in Q1 FY21.

It stated the volume of such transactions is expected to cross Rs 1.5 lakh crore in FY23. It mentioned Securitisation of mortgage-backed loans dominated with around 46 per cent share in total securitisation volumes followed by vehicle loan segment accounting for approximately 26 per cent and microfinance at about 11 per cent.

It added the number of originators who securitised their assets in Q1 FY23 increased sharply to 70 from 46 in Q1 FY22. Securitisation is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or Collateralised Debt Obligations (CDOs).

The CNX Nifty is currently trading at 16141.45, down by 74.55 points or 0.46% after trading in a range of 16103.35 and 16156.85. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 2.75%, NTPC up by 1.76%, Adani Ports &SEZ up by 1.32%, Bharti Airtel up by 0.67% and Dr. Reddy's Lab up by 0.60%. On the flip side, Hindalco down by 3.00%, Titan Company down by 1.83%, Tata Steel down by 1.61%, UPL down by 1.38% and Asian Paints down by 1.30% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 512.73 points or 1.91% to 26,299.57, Taiwan Weighted dropped 368.73 points or 2.57% to 13,971.80, Hang Seng decreased 255.11 points or 1.21% to 20,869.09, KOSPI fell 33.88 points or 1.45% to 2,306.39, Shanghai Composite declined 33.38 points or 1.01% to 3,280.20 and Straits Times advanced 1.39 points or 0.04% to 3,132.65.

On the flip side, Jakarta Composite soared 9.54 points or 0.14% to 6,731.69.