Benchmarks extend losses after RBI keeps policy rate unchanged

Indian equity benchmarks extended losses in morning deals amid the RBI policy announcement, weak global cues, and weekly F&O expiry. The Reserve Bank of India (RBI) has decided to keep policy rate unchanged for third time in a row as it maintains heightened vigil on inflation. The rate increase cycle was paused in April after six consecutive rate hikes aggregating to 250 basis points since May 2022. It also directed banks to maintain incremental cash reserve ratio (ICRR) at 10 per cent, August 12 onwards, in order to reduce liquidity from the system. Traders also remained cautious with a private report that the rate of price rise for the consumer basket likely breached the central bank's upper tolerance level of 6 per cent in July. Traders overlooked exchange data showing that Foreign Institutional Investors (FIIs) turned buyers on Wednesday after continuous offloading of equities for the past several days. They bought equities worth Rs 644.11 crore on Wednesday. On the global front, Asian markets are trading mostly in red as oil prices climbed to seven-month highs, raising concerns surrounding inflation and the interest-rate outlook. Investors also await U.S. CPI data due out later in the day that might show acceleration in inflation in July.

The BSE Sensex is currently trading at 65637.03, down by 358.78 points or 0.54% after trading in a range of 65637.03 and 65956.25. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.15%, while Small cap index was up by 0.15%.

The top gaining sectoral indices on the BSE were Utilities up by 0.65% and Power up by 0.48% while, Bankex down by 0.62%, FMCG down by 0.57%, Consumer Durables down by 0.56%, Capital Goods down by 0.39% and TECK down by 0.39% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 0.43%, Power Grid Corporation up by 0.40%, Indusind Bank up by 0.31%, Ultratech Cement up by 0.28% and Wipro up by 0.28%. On the flip side, Asian Paints down by 2.35%, Tata Motors down by 1.28%, Nestle down by 1.00%, HCL Technologies down by 1.00% and ITC down by 0.97% were the top losers.

Meanwhile, the commerce ministry has said procurement through the Government e-Marketplace (GeM) portal have enabled the government to save over Rs 45,000 crore since its launch in 2016. Government e-Marketplace is India's online marketplace for public procurement.

Launched in 2016, GeM facilitates transparent and efficient procurement for government departments, organisations and PSUs. It stated ‘A hallmark of GeM's success lies in its dedication to cost savings, having enabled the government to save over Rs 45,000 crore since 2016.’ It also said that the portal has surpassed the achievements of renowned public procurement platforms such as South Korea's KONEPS and Singapore's GeBIZ. 

Further, it said central buyers, including CPSEs and allied bodies, have floated over 70 bids worth over Rs 100 crore on the portal in 2022-23. Besides, it said with nearly 6.5 million sellers and 70,000 government buyers registered on the platform as of July 2023, the cumulative GMV (Gross Merchandise Value) surpassed Rs 4.5 lakh crore, showcasing the platform's enduring impact.

The CNX Nifty is currently trading at 19539.60, down by 92.95 points or 0.47% after trading in a range of 19533.75 and 19623.60. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 1.26%, BPCL up by 0.67%, Adani Ports &SEZ up by 0.65%, NTPC up by 0.34% and Power Grid Corporation up by 0.33%. On the flip side, Asian Paints down by 2.37%, Tata Motors down by 1.24%, HCL Technologies down by 1.08%, Nestle down by 1.04% and Hindalco down by 1.04% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 241.58 points or 1.43% to 16,629.36, Hang Seng declined 183.58 points or 0.96% to 19,062.45, Shanghai Composite weakened 8.59 points or 0.27% to 3,235.90, KOSPI dropped 6.72 points or 0.26% to 2,598.40 and Straits Times fell 6.54 points or 0.2% to 3,307.25.

On the flip side, Jakarta Composite gained 15.63 points or 0.23% to 6,890.74 and Nikkei 225 surged 233.34 points or 0.72% to 32,437.67.