Pressurized by feeble global cues, Indian equity benchmarks continue to trade in deep red in noon deals amid lingering worry about high inflation, rising interest rates and a possible global recession. Sentiments were dampened as rupee hits new historic low against dollar which will make import of crude oil and other commodities expensive further fueling inflation which for the past several months has remained above the Reserve Bank's upper tolerance level of 6 per cent. Also, it is likely to continue with rise in trade deficit and gradual withdrawal of funds by institutional investors. Currently, the partially convertible rupee was trading at 81.64, down 55 paise against its previous close. Traders were also worried as foreign institutional investors offloaded shares worth a net Rs 2,899.68 crore on Friday, according to data available with BSE. Counters, which featured in the list of worst performers, include Metal, Utilities and Power. The broader indices too were reeling under pressure, while the market breadth on the BSE was negative; there were 476 shares on the gaining side against 3005 shares on the losing side while 113 shares remain unchanged. On the global front all Asian markets were trading lower.
The BSE Sensex is currently trading at 57241.16, down by 857.76 points or 1.48% after trading in a range of 57038.24 and 57708.38. There were 6 stocks advancing against 24 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index lost 3.04%, while Small cap index was down by 3.43%.
The only gaining sectoral indices on the BSE were TECK up by 0.09% and IT was up by 0.08%, while Metal down by 4.80%, Utilities down by 4.43%, Power down by 4.37%, Realty down by 4.29% and PSU was down by 3.62% were the top losing indices on BSE.
The top gainers on the Sensex were Infosys up by 1.41%, Nestle up by 1.39%, HCL Tech up by 0.97%, Asian Paints up by 0.88% and Tech Mahindra was up by 0.28%. On the flip side, Power Grid down by 6.91%, Tata Steel down by 4.60%, Maruti Suzuki down by 4.22%, NTPC down by 3.99% and Bajaj Finance was down by 3.75% were the top losers.
Meanwhile, Reserve Bank of India (RBI) in its latest data has showed that banking system's credit growth at the end of the June quarter (Q1FY23) accelerated to 14 per cent as compared to the year-ago period despite hike in lending rates. The numbers based on data reported by 89 scheduled commercial banks excluding the performance of the regional rural banks are much higher than the 10.7 per cent growth in the preceding March quarter, and 5.8 per cent in the June 2021 quarter.
It stated that the growth came despite a 0.21 per cent increase in the weighted average lending rate on the outstanding loans and that this was the first quarter of a hike after ten successive quarters of a decline. It can be noted that in early May, the RBI started its rate hikes in response to the runaway inflation. Growth in personal loans at 20.8 per cent in June 2022 drove the overall system credit growth, the data said, adding that this growth came despite a 0.31 per cent increase in WALR in this segment. Credit to industry grew at 7.2 per cent in June 2022 quarter, up from 4.8 per cent in the quarter-ago period, and both term loans and working capital loans grew in double digits.
Data further indicated that share of individuals in total credit increased to 44.1 per cent in June 2022 from 43.7 per cent in the previous quarter. Credit growth for female borrowers outpaced the growth in loans availed by male customers. Private sector banks continued to record higher credit growth than their state-run rivals, and the share of private sector banks in total credit has now increased to 38 per cent from 35.3 per cent in June 2020 and 22.2 per cent in June 2015. The private sector lenders accounted for 47.8 per cent of the incremental credit during the last one year to June 30.
The CNX Nifty is currently trading at 17041.25, down by 286.10 points or 1.65% after trading in a range of 16978.30 and 17196.40. There were 8 stocks advancing against 42 stocks declining on the index.
The top gainers on Nifty were Divi's Lab up by 2.02%, Nestle up by 1.53%, Infosys up by 1.31%, HCL Tech up by 0.90% and Asian Paints was up by 0.85%. On the flip side, Power Grid down by 6.84%, Tata Motors down by 5.92%, Hindalco down by 5.68%, Eicher Motors down by 5.00% and Adani Ports was down by 4.95% were the top losers.
All Asian markets were trading lower; Hang Seng decreased 114.25 points or 0.64% to 17,819.02, Nikkei 225 slipped 722.28 points or 2.66% to 26,431.55, Taiwan Weighted dropped 340.19 points or 2.41% to 13,778.19, KOSPI fell 68.48 points or 2.99% to 2,221.52, Straits Times trembled 46.73 points or 1.45% to 3,180.37, Shanghai Composite declined 17.53 points or 0.57% to 3,070.84 and Jakarta Composite was down by 87.59 points or 1.22% to 7,090.99.
