Domestic indices continue to witness bloodbath; HDFC bank falls over 3.50%

Domestic equity markets continued to witness bloodbath and were trading with cut of around one percent in late morning deals, which dragged the Sensex below its psychological 67,000 mark and Nifty traded near to 19,950 level respectively. Hectic selling in HDFC bank and Reliance Industries stocks pressured the markets to trade deeply in red. Weak cues from the global markets weighed on the domestics sentiments. Investors awaited the U.S. Federal Reserve's monetary policy announcement later in the day. Meanwhile, market sentiments were also hit amid deteriorating ties between India and Canada, as they could have a bearing on flows into India.  Besides, rising oil prices too weighed on sentiments.  

On the global front, Asian markets were trading mostly in red, following negative cues from US markets overnight, as China left its one-year and five-year loan prime rates unchanged and traders braced for the U.S. Federal Reserve’s rate decision. Back home,  on the BSE sectoral front, traders were seen pilling up position in  Utilities, Power, PSU, Consumer Durables and Auto, while selling was witnessed in Bankex, Realty, Telecom, Oil & Gas and Energy. 

The BSE Sensex is currently trading at 66974.67, down by 622.17 points or 0.92% after trading in a range of 66936.86 and 67294.16. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.20%, while Small cap index down by 0.40%.

The top gaining sectoral indices on the BSE were Utilities up by 0.49%, Power up by 0.49%, PSU up by 0.18%, Consumer Durables up by 0.06% and Auto up by 0.02%, while Bankex down by 0.96%, Realty down by 0.95%, Telecom down by 0.63%, Oil & Gas down by 0.62% and Energy down by 0.47% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 2.15%, NTPC up by 0.97%, Axis Bank up by 0.95%, Bajaj Finance up by 0.71% and Tata Motors up by 0.66%. On the flip side, HDFC Bank down by 3.75%, Reliance Industries down by 1.66%, JSW Steel down by 1.39%, Ultratech Cement down by 1.23% and Maruti Suzuki down by 1.19% were the top losers.

Meanwhile, the Global Trade Research Initiative (GTRI) in its report has said that banking issues like reluctance to process forex received through alternate channels and high processing fees are hindering the growth of e-commerce exports from India, and there is a need to bring mindset change to unlock the sector's potential. Unlocking India's e-commerce export potential to $350 billion by 2030 requires addressing banking issues that hinder growth and increase operational costs.

To initiate change, the report said both the RBI and banks must shift their mindset towards treating small-value exports differently from larger ones. This shift is essential to prevent misuse while streamlining processes. Without this fundamental change, any reforms attempted by the RBI and banks will fall short. Small e-commerce businesses often face challenges because banks are not equipped to handle low-value transactions efficiently. The key issues include reluctance to process forex through alternate channels, high processing fees, incorrect purpose code allocation, and limitations in the RBI's EDPMS (Export Data Processing and Monitoring System).

The report further suggested eight action points, such as the creation of a single window platform for e-commerce and small-value shipments, standardise bank charges, defining a time limit for banks to complete all small export-related requests by the RBI, and exempting shipment value up to $1,000 per shipment from monitoring till the single window is implemented. It also pitched for an extension of the timeline for EDPMS closure from the current nine months to 24 months and redesign the courier shipping bill to reflect correct payment terms.

The CNX Nifty is currently trading at 19953.55, down by 179.75 points or 0.89% after trading in a range of 19945.45 and 20050.65. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 2.10%, Coal India up by 1.92%, NTPC up by 1.06%, Axis Bank up by 0.93% and Bajaj Auto up by 0.84%. On the flip side, HDFC Bank down by 3.80%, BPCL down by 1.89%, Apollo Hospital down by 1.86%, Reliance Industries down by 1.67% and Britannia down by 1.61% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 62.34 points or 0.35% to 17,934.83, Taiwan Weighted lost 101.57 points or 0.61% to 16,534.75, Straits Times fell 5.74 points or 0.18% to 3,235.01, Shanghai Composite weakened 6.67 points or 0.21% to 3,118.29, KOSPI dropped 2.87 points or 0.11% to 2,556.34 and Nikkei 225 slipped 233.14 points or 0.7% to 33,009.45. However, Jakarta Composite gained 51.84 points or 0.74% to 7,032.16.