Bourses add downward pressure in late afternoon session

Following weak from European markets, Indian equity benchmarks have magnified their losses in late afternoon session. Markets hovered near the lowest points of the day. Selling in banking counters dragged the markets lower. Traders overlooked Finance Ministry’s statement that net direct tax collection rose by 11.18 per cent to Rs 3.80 lakh crore till June 17 2023 on higher advance tax mop up. The Advance Tax collections for the April-June quarter of 2023-24 stood at Rs 1,16,776 crore as of June 17, reflecting a growth of 13.70 per cent over the same period last fiscal. On the global front, All Asian markets were trading lower as investors exercised cautious ahead of China's interest-rate decision and Fed Chair Jerome Powell's testimonies. European markets were trading lower with Franco-German lab equipment maker Sartorius leading the declines, while investors cautiously awaited further stimulus measures from China to revive demand.

The BSE Sensex is currently trading at 63101.83, down by 282.75 points or 0.45% after trading in a range of 63047.83 and 63574.69. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.04%, while Small cap index was up by 0.19%.

The top gaining sectoral indices on the BSE were Industrials up by 0.34%, Healthcare up by 0.27%, IT up by 0.17%, Consumer Durables up by 0.04% and Capital Goods was up by 0.01%, while Telecom down by 1.25%, Bankex down by 1.00%, Realty down by 0.83%, Utilities down by 0.75% and Power was down by 0.71% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.22%, Bajaj Finserv up by 1.86%, Sun Pharma up by 1.14%, TCS up by 0.94% and Tech Mahindra up by 0.86%. On the flip side, Kotak Mahindra Bank down by 1.96%, Axis Bank down by 1.49%, ICICI Bank down by 1.46%, Power Grid down by 1.28% and NTPC down by 1.17% were the top losers.

Meanwhile, SBI Research in its latest report has said that the Reserve Bank of India’s (RBI) decision to withdraw Rs 2000 banknotes from circulation as a part of its currency management is likely to boost various macroeconomic parameters. On May 19, 2023, RBI decided to withdraw the Rs 2000 denomination banknotes from circulation but said it will continue to remain as legal tender. However, RBI has advised banks to stop issuing such banknotes with immediate effect.

As per the SBI Research report, though some amount would be withdrawn following the deposit, but going by the current trends, CASA deposits are likely to increase (Rs 1.5 lakh crore) due to this measure. Citing all scheduled commercial bank (ASCB) data, the report said that it shows that there has been an increase in total deposits of Rs 3.3 lakh crore during the fortnight ended June 2, 2023.

The report further noted that the average increase in deposits during the same fortnight in the last two years was around Rs 1.5 lakh crore. Thus, taking that also into account, banks may have received additional deposits of around Rs 1.8 lakh crore during the fortnight this year. Report also said that it seems Corporates, flush with in-hand liquidity, are parking the additional funds with Banks.

The CNX Nifty is currently trading at 18733.90, down by 92.10 points or 0.49% after trading in a range of 18719.15 and 18881.45. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 2.17%, Bajaj Finserv up by 1.92%, Sun Pharma up by 1.22%, HDFC Life Insurance up by 1.21% and Tech Mahindra up by 1.09%. On the flip side, Adani Enterprises down by 4.37%, Kotak Mahindra Bank down by 1.96%, Adani Ports down by 1.69%, Axis Bank down by 1.66% and Hero MotoCorp down by 1.65% were the top losers.

All Asian markets were trading lower, Nikkei 225 slipped 335.66 points or 1.01% to 33,370.42, Hang Seng declined 127.48 points or 0.64% to 19,912.89, Straits Times fell 18.7 points or 0.58% to 3,241.33, Shanghai Composite weakened 17.52 points or 0.54% to 3,255.81, KOSPI dropped 16.29 points or 0.62% to 2,609.50, Taiwan Weighted lost 14.35 points or 0.08% to 17,274.56 and Jakarta Composite was down by 12.91 points or 0.19% to 6,685.64. 

European markets were trading lower, UK’s FTSE 100 decreased 34.86 points or 0.46% to 7,607.86, France’s CAC fell 53.29 points or 0.73% to 7,335.36 and Germany’s DAX was down by 112.05 points or 0.69% to 16,245.58.