Benchmarks remain in red in morning deals

Indian equity benchmarks traded with marginal losses in morning deals, dragged by selling in TECK, IT and Banking stocks amid negative global cues. Traders remained cautious as the latest data on public debt showed that the total liabilities of the government increased to Rs 147.19 lakh crore at September-end from Rs 145.72 lakh crore at the end of June this fiscal year. In percentage terms, it reflects a quarter-on-quarter increase of 1 per cent in second quarter of 2022-23. Traders took a note of the Reserve Bank of India (RBI) in its 'Trends and Progress of Banking in India' report for FY22 has said that Indian banks' gross non-performing assets (GNPA) declined to 5.8 per cent in March 2022, but the present macroeconomic environment can impact lenders' health. It stated the GNPAs, which touched a peak in FY18 following the asset quality review, have been declining sequentially to reach 5 per cent in September 2022. On the global front, Asian markets are trading mostly in red with investors looking for direction after China took further steps towards reopening its COVID-battered economy.

The BSE Sensex is currently trading at 60815.60, down by 111.83 points or 0.18% after trading in a range of 60713.77 and 60974.84. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.11%, while Small cap index was up by 0.24%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.26%, Utilities up by 1.23%, Power up by 1.22%, Auto up by 0.49% and Realty up by 0.35%, while TECK down by 0.61%, IT down by 0.55%, Bankex down by 0.12%, Oil & Gas down by 0.11% and Telecom down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 2.37%, Power Grid Corporation up by 1.29%, Maruti Suzuki up by 1.19%, Mahindra & Mahindra up by 1.04% and NTPC up by 0.85%. On the flip side, Bajaj Finserv down by 1.35%, Bharti Airtel down by 0.88%, Infosys down by 0.85%, Reliance Industries down by 0.65% and TCS down by 0.54% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its 'Trends and Progress of Banking in India' report for FY22 has said that Indian banks' gross non-performing assets (GNPA) declined to 5.8 per cent in March 2022, but the present macroeconomic environment can impact lenders' health. It stated the GNPAs, which touched a peak in FY18 following the asset quality review, have been declining sequentially to reach 5 per cent in September 2022.

The decrease in the GNPAs was attributed to lower slippages and also a reduction in outstanding GNPAs through recoveries, upgradations and write-offs. It asserted ‘Although presently the Indian banking sector remains robust and resilient with improved asset quality and strong capital buffers, the policymakers remain mindful of dynamically evolving macroeconomic conditions that may impinge on the health of regulated entities.’

However, it mentioned the restructured assets ratio increased by 1.1 percentage points for all the borrowers and by 0.5 percentage points for large borrowers, adding that the efforts to help individuals and small businesses with the loan recast scheme has been successful.
The CNX Nifty is currently trading at 18100.45, down by 31.85 points or 0.18% after trading in a range of 18068.35 and 18146.80. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 2.27%, UPL up by 1.66%, Power Grid Corporation up by 1.22%, Maruti Suzuki up by 1.18% and Mahindra & Mahindra up by 0.90%. On the flip side, ONGC down by 1.38%, Bajaj Finserv down by 1.21%, Bajaj Auto down by 0.89%, Infosys down by 0.86% and Bharti Airtel down by 0.85% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted dropped 147.20 points or 1.03% to 14,181.23, Nikkei 225 slipped 146.10 points or 0.55% to 26,301.77, Jakarta Composite lost 60.44 points or 0.87% to 6,862.59 and KOSPI fell 48.66 points or 2.09% to 2,284.13.

On the flip side, Straits Times advanced 0.82 points or 0.03% to 3,267.20, Shanghai Composite gained 1.37 points or 0.04% to 3,096.94 and Hang Seng increased 418.93 points or 2.14% to 20,011.99.