Markets remain in red in late morning deals

Indian equity markets remained in red with Sensex falling over 300 points in late morning deals as market participants indulged in reducing their positions. Weak cues from global markets weighted domestic sentiments. There was cautiousness in the markets as US Bond yields extended their February gains, with the benchmark 10-year yield briefly topping 4% for the first time since November. The 1-year Treasury yield rose above 5%. Depreciation in Indian rupee against dollar too weighed down sentiments. Rupee weakened by 6 paise to 82.55 against the dollar at the Inter-bank Foreign Exchange market on account of increased demand for the American currency from importers and banks. On the global front, Asian markets were trading mostly in red as traders remained cautious amid concerns about growth and the outlook for interest rates. Back home, on the BSE sectoral front,  traders were seen pilling up position in Realty, Energy, Utilities, Oil & Gas and Industrials, while selling was witnessed in TECK, IT, Auto, FMCG and Banking stocks.

The BSE Sensex is currently trading at 59099.32, down by 311.76 points or 0.52% after trading in a range of 59025.55 and 59423.79. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.05%, while Small cap index up by 0.10%.

The top gaining sectoral indices on the BSE were Realty up by 1.04%, Energy up by 0.40%, Utilities up by 0.37%, Oil & Gas up by 0.26% and Industrials up by 0.12%, while TECK down by 1.09%, IT down by 1.00%, Auto down by 0.65%, FMCG down by 0.39% and Bankex down by 0.32% were the top losing indices on BSE.

The top gainers on the Sensex were HCL up by 0.78%, Ultratech Cement up by 0.46%, Larsen & Toubro up by 0.38%, Indusind Bank up by 0.37% and ICICI Bank up by 0.22%. On the flip side, Maruti Suzuki down by 1.86%, Axis Bank down by 1.72%, TCS down by 1.64%, Infosys down by 1.40% and Bajaj Finance down by 1.37% were the top losers.

Meanwhile, Moody's Investors Service has said that the banking sector outlook remains stable and is supported by economic growth and improved financials. It said ‘while we expect the country's real GDP growth to moderate in the fiscal year ending March 2024 (fiscal 2024), India's underlying growth potential is fundamentally strong, which will support banks' credit growth and asset quality.’

However, it said loans to small and medium-size enterprises (SMEs) continue to pose risks to banks' asset quality because this segment is the most vulnerable to rises in interest rates. Stating that asset quality of banks will be stable, it said non-performing loan (NPL) ratios will decline modestly because of recoveries and write-offs of legacy problem loans.

The US-based rating agency also said banks' profitability will stabilise after improving in the past few years as the boost from declines in loan-loss provisions wanes. It noted that banks' capital, funding and liquidity will be stable and supportive of credit growth. It also said the Indian economy will continue to grow strongly, despite external challenges, while maintaining a stable outlook for India's banking system.

The CNX Nifty is currently trading at 17373.00, down by 77.90 points or 0.45% after trading in a range of 17343.95 and 17445.80. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.03%, Hero MotoCorp up by 1.76%, BPCL up by 1.27%, HCL up by 0.85% and Dr. Reddy's up by 0.56%. On the flip side, Maruti Suzuki down by 1.87%, Axis Bank down by 1.64%, TCS down by 1.62%, Infosys down by 1.39% and Bharti Airtel down by 1.15% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 187.44 points or 0.91% to 20,432.27, Shanghai Composite weakened 2.11 points or 0.06% to 3,310.24, Straits Times fell 16.56 points or 0.51% to 3,238.52 and Nikkei 225 slipped 13.74 points or 0.05% to 27,502.79. However, Taiwan Weighted added 11.08 points or 0.07% to 15,609.57, KOSPI increased 14.32 points or 0.59% to 2,427.17 and Jakarta Composite gained 20.19 points or 0.29% to 6,865.13.