Domestic indices extend opening losses in early deals; Sensex crashes over 500 points

Indian equity benchmarks made negative start on Tuesday amid sell-off in global markets coupled with rising crude oil prices overnight. Soon, domestic indices extended their losses and are trading lower with cut of around a percent each in early deals due to selling in Metal, Telecom and TECK counters. Foreign fund outflows also dented sentiments in domestic markets. Foreign institutional investors (FIIs) have net-sold shares worth Rs 538.10 crore on December 19, as per provisional data available on the NSE. Some cautiousness came in as liquidity in the banking system has slipped into a deficit for the first time in three weeks, prompting banks to borrow the largest quantum of funds from the Reserve Bank of India (RBI) in around a month and a half. 

Global cues remained lackluster with all the Asian markets trading lower, following the broadly negative cues from Wall Street overnight, as traders remain concerned aggressive monetary policy moves by central banks across the world could tip the global economy into recession next year. Traders continued to refrain from creating fresh long positions. The uncertainty over China's economic reopening as the country battles a wave of Covid infections is also weighing on the markets.

Back home, telecom stocks were under pressure as a report of sector regulator -- the Telecom Regulatory Authority of India (Trai) in the subscribers report for October 2022 said the number of telephone subscribers in India decreased from 1,171.92 million at the end of September 2022 to 1,170.45 million at the end of October 2022, thereby showing a monthly decline rate of 0.12%. In stock specific development, NBCC (India) gained after it bagged orders worth Rs 69.3 crore from Odisha Power Transmission Corporation.

The BSE Sensex is currently trading at 61263.55, down by 542.64 points or 0.88% after trading in a range of 61131.26 and 61612.73. There were 2 stocks advancing against 28 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.67%, while Small cap index was down by 0.24%.

The top losing sectoral indices on the BSE were Metal down by 1.63%, Telecom down by 1.17%, TECK down by 1.15%, IT down by 1.09%, Realty down by 1.07%, while there was no gainers on the BSE sectoral front.

The only gainers on the Sensex were Axis Bank up by 0.19% and Ultratech Cement up by 0.08%. On the flip side, Tech Mahindra down by 1.92%, HCL Technologies down by 1.73%, Larsen & Toubro down by 1.59%, Mahindra & Mahindra down by 1.58% and Asian Paints down by 1.58% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said note in circulation (NiC) has witnessed an annual growth of 7.98 per cent to Rs 31.92 lakh crore as of December 2, 2022. She said the demand for currency depends upon several macroeconomic factors, including economic growth and level of interest rates. The quantum of cash or banknotes in the economy depends on the requirement for meeting the demand for banknotes due to GDP growth, inflation, replacement of soiled banknotes and growth in non-cash modes of payment.

She stressed that the mission of the government is to move towards a less cash economy to reduce the generation and circulation of black money and to promote the digital economy. She added both the government and RBI have taken measures to promote a less cash economy and encourage digital payment.

With regard to 'Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions', she said the RBI has advised banks to ensure that merchants on-boarded by them do not pass on MDR charges to customers while accepting payments through debit cards. The minister noted the Department of Revenue advised banks to immediately refund charges collected, if any, on or after January 1, 2020, on transactions carried out using the electronic modes prescribed under section 269SU of the Act and not to impose charges on any future transactions through the prescribed modes.

The CNX Nifty is currently trading at 18251.60, down by 168.85 points or 0.92% after trading in a range of 18213.55 and 18355.20. There were 2 stocks advancing against 48 stocks declining on the index.

The only gainers on Nifty were Adani Enterprises up by 0.60% and Axis Bank up by 0.20%. On the flip side, Hindalco down by 2.71%, Eicher Motors down by 2.03%, Tech Mahindra down by 2.00%, Dr. Reddy's Lab down by 1.88% and HCL Technologies down by 1.75% were the top losers.

All the Asian markets are trading in red; Nikkei 225 slipped 739.05 points or 2.71% to 26,498.59, Straits Times declined 12.89 points or 0.40% to 3,243.72, Hang Seng plunged 254.39 points or 1.31% to 19,098.42, Taiwan Weighted lost 184.16 points or 1.28% to 14,249.16, KOSPI weakened 19.98 points or 0.85% to 2,332.19, Jakarta Composite fell 56.41 points or 0.83% to 6,723.29 and Shanghai Composite was down by 19.79 points or 0.64% to 3,087.33.