Bourses suffer with deep losses in late afternoon session

Indian benchmarks suffered with deep losses in late afternoon session as sentiments across the world dampened after Fed Chair Jerome Powell said overnight that the Fed will deliver more interest rate increases next year despite a possible recession in the U.S., with rates expected to peak above 5%. Investors now turned their attention to outcome of rate decisions by the Bank of England and the European Central Bank (ECB). Domestic traders overlooked financialisation of savings is growing in the country, and the assets under management will grow to nearly three-fourths of GDP in five years to FY2027. IT, TECK and Metal sectors stocks were trading lower. On the global front, all Asian markets were trading lower hit by concerns over rising COVID-19 infections in China and disappointing economic data and the U.S. Federal Reserve projecting higher interest rates for a longer period. European markets were trading lower as nervous investors awaited an interest rate decision from the bloc's central bank, a day after the U.S. Federal Reserve signalled it would keep hiking rates further.

The BSE Sensex is currently trading at 62173.23, down by 504.68 points or 0.81% after trading in a range of 62109.20 and 62624.81. 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 0.52%, while Small cap index was down by 0.06%.

The only gaining sectoral indices on the BSE were Oil & Gas up by 0.50% and Energy was up by 0.05%, while IT down by 1.62%, TECK down by 1.56%, Metal down by 1.31%, Consumer Durables down by 1.15%, FMCG down by 0.62% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 0.37%, Mahindra & Mahindra up by 0.33%, NTPC up by 0.32%, Axis Bank up by 0.13% and Bajaj Finance up by 0.07%. On the flip side, Tech Mahindra down by 3.18%, Titan Company down by 2.14%, Infosys down by 2.02%, TCS down by 1.60% and Tata Steel down by 1.19% were the top losers.

Meanwhile, advising FinTechs to pay close attention to governance, business conduct, data protection, customer centricity, regulatory compliance and risk mitigation frameworks, The Reserve Bank of India (RBI) Governor Shaktikanta Das has reiterated that the RBI will continue to adopt a participative and consultative approach for facilitating innovations in the financial sector.

In a meeting with FinTechs and Industry Associations, the RBI Governor also said that FinTech initiatives and start-ups are important segments of aspirational India. He said that they are playing a transformative role in the financial system through digital innovations and innovative means of delivery of financial services.

Governor Shaktikanta Das also highlighted the proactive and supportive role of the Reserve Bank of India in providing conducive policy environment for responsible innovation. Meanwhile, in a meeting, the participants shared their inputs and suggestions to enhance and deepen the role of FinTechs and the related ecosystem in the country.

The CNX Nifty is currently trading at 18525.60, down by 134.70 points or 0.72% after trading in a range of 18497.15 and 18652.90. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Britannia up by 1.39%, SBI Life up by 1.15%, Hero MotoCorp up by 1.08%, HDFC Life Insurance up by 0.75% and ONGC up by 0.58%. On the flip side, Tech Mahindra down by 3.34%, Titan Company down by 2.11%, Infosys down by 1.99%, TCS down by 1.64% and JSW Steel down by 1.61% were the top losers.

All Asian markets were trading lower, Hang Seng decreased 304.86 points or 1.55% to 19,368.59, Nikkei 225 slipped 104.51 points or 0.37% to 28,051.70, Jakarta Composite lost 49.89 points or 0.73% to 6,751.86, KOSPI fell 38.28 points or 1.6% to 2,360.97, Straits Times trembled 11.77 points or 0.36% to 3,266.80, Shanghai Composite declined 7.88 points or 0.25% to 3,168.65 and Taiwan Weighted was down by 5.23 points or 0.04% to 14,734.13.

European markets were trading lower, UK’s FTSE 100 decreased 52.68 points or 0.7% to 7,443.25, France’s CAC decreased 75.32 points or 1.12% to 6,655.47 and Germany’s DAX was down by 128.02 points or 0.89% to 14,332.18.