Benchmarks remain in red in morning deals

Indian equity benchmarks remained in red in morning deals, as investors were cautious ahead of the kick start of the three-day RBI policy review later in the day. Sentiments remained down-beat with a private survey showed growth in India's dominant services industry slowed sharply in July, squeezed by high inflationary pressures and weaker demand, leading to a further fall in business expectations. The S&P Global India Services Purchasing Managers' Index sank to 55.5 in July from 59.2 in June, its lowest since March. Some concern also came as the commerce ministry in its latest data has showed that exports dipped, though marginally, for the first time in 17 months in July, while trade deficit tripled to a record $31 billion fuelled by over 70 per cent rise in crude oil imports. However, losses remain capped as some support came with a private report that the corporate earnings growth during the first quarter of the current fiscal is largely led by the banking, financial services and insurance (BFSI) sector and also helped by credit cost moderation.

On the global front, Asian markets are trading mostly in green as a private-sector survey showed China's services activity grew at the fastest rate in 15 months in July as easing COVID curbs boosted consumer confidence, but foreign demand fell and companies cut staff for the seventh month in a row. The Caixin services purchasing managers' index (PM) rose to 55.5 in July, the fastest growth since April 2021, rising further from the robust reading of 54.5 in June.

The BSE Sensex is currently trading at 57973.14, down by 163.22 points or 0.28% after trading in a range of 57924.49 and 58307.33. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.70%, while Small cap index was down by 0.36%.

The few gaining sectoral indices on the BSE were IT up by 0.84% and TECK up by 0.61%, while Telecom down by 1.65%, Oil & Gas down by 1.04%, Auto down by 1.04%, Capital Goods down by 0.96% and Energy down by 0.95% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 1.28%, HCL Technologies up by 0.85%, Infosys up by 0.82%, TCS up by 0.67% and Wipro up by 0.50%. On the flip side, Kotak Mahindra Bank down by 2.09%, ITC down by 1.44%, Maruti Suzuki down by 1.42%, Mahindra & Mahindra down by 1.25% and Indusind Bank down by 1.25% were the top losers.

Meanwhile, Union Minister of State for Finance Bhagwat Kisanrao Karad has said that Rs 9.98 lakh crore of loans were sanctioned to 16.67 crore loan accounts under Pradhan Mantri Mudra Yojana (PMMY) in three years from 2015 to 2018. He stated the Pradhan Mantri Mudra Yojana helped in generation of 1.12 crore net additional employment during a period of around 3 years (from 2015 to 2018).

He said the employment generation figure is based on a sample survey conducted by the Ministry of Labour and Employment. As per findings of this survey, he stated, on an overall basis, loans under Shishu category accounted for 66 per cent of additional employment generated by establishments owned by MUDRA beneficiaries followed by Kishore (19 per cent) and Tarun (15 per cent) categories.

Further, he said, as on 1 July 2022, more than 7.66 crore loans amounting to Rs 6.12 lakh crore have been extended to New Entrepreneurs/Accounts under PMMY, since inception of the Scheme. However, data on employment opportunities created under the PMMY Scheme is not centrally maintained.

The CNX Nifty is currently trading at 17280.40, down by 65.05 points or 0.38% after trading in a range of 17262.20 and 17385.00. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Cipla up by 1.87%, Tech Mahindra up by 1.24%, HCL Tech. up by 0.89%, Infosys up by 0.74% and TCS up by 0.62%. On the flip side, Coal India down by 2.58%, Kotak Mahindra Bank down by 2.02%, Tata Motors down by 1.63%, ONGC down by 1.57% and ITC down by 1.52% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 129.03 points or 0.47% to 27,723.76, Hang Seng increased 120.34 points or 0.61% to 19,809.55, Jakarta Composite soared 22.37 points or 0.32% to 7,010.53, KOSPI rose 17.10 points or 0.7% to 2,456.72, Shanghai Composite gained 12.85 points or 0.4% to 3,199.12 and Straits Times advanced 10.12 points or 0.31% to 3,249.27.

On the flip side, Taiwan Weighted dropped 53.97 points or 0.37% to 14,693.26.