Bourses again extend losses in late afternoon session

After trading flat, Indian equity markets once again extended their losses in late afternoon session amid weak cues from other Asian markets. Traders were cautious ahead of key macroeconomic data i.e. India Industrial Production (IIP) due later today and Consumer Price Index (CPI) going to be out on Monday. Traders took note of report that Credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has forecasted that fiscal 2026 (FY26) will be a year of headwinds for the credit market, led by externalities, length and breath of indebtedness in the retail lending space, volatile banking system liquidity and domestic growth-inflation conundrums.

On the global front, Asian markets were trading mostly in red as the U.S. jobs report loomed, China growth worries persisted, and traders remained on alert for a rising risk of Japanese authorities intervening to support the yen. European markets were trading higher as investors await U.S. non-farm payroll for some clarity about the outlook on Federal Reserve's possible moves with regard to interest rates.

The BSE Sensex is currently trading at 77316.40, down by 303.81 points or 0.39% after trading in a range of 77099.55 and 77919.70. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 2.10%, while Small cap index was down by 2.40%.

The only gaining sectoral indices on the BSE were IT up by 2.58% and TECK was up by 2.21%, while Power down by 2.96%, Utilities down by 2.62%, Healthcare down by 2.43%, PSU down by 2.40% and Realty was down by 2.32% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 5.91%, Tech Mahindra up by 3.71%, HCL Tech up by 2.60%, Infosys up by 2.41% and Bharti Airtel up by 0.62%. On the flip side, Indusind Bank down by 4.58%, Ultratech Cement down by 3.49%, NTPC down by 3.43%, Sun Pharma down by 2.68% and SBI down by 2.15% were the top losers.

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has forecasted that fiscal 2026 (FY26) will be a year of headwinds for the credit market, led by externalities, length and breath of indebtedness in the retail lending space, volatile banking system liquidity and domestic growth-inflation conundrums.

According to the report, liquidity has improved on a year-to-date basis in the current fiscal, while it will remain volatile in the next fiscal and will act as a deterrent for commercial banks in terms of addressing adverse loan-to-deposit ratios and asset liability pricing. Subsequently, volatility in the banking system may have an impact on domestic money market.

The rating agency further noted that spreads of non-banking financial companies are likely to increase further with the rising uncertainties over asset quality and it also expects moderate-to-strong deterioration in various asset classes during the year. 

It said therefore, it is obvious that the credit premium would inch up in the financial sector, applicable for both bank and capital market lending. Ind-Ra further stated that while NBFCs’ asset quality could weaken, corporates’ asset quality might remain resilient with minor moderation.

The CNX Nifty is currently trading at 23420.15, down by 106.35 points or 0.45% after trading in a range of 23344.35 and 23596.60. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were TCS up by 5.86%, Tech Mahindra up by 3.73%, Wipro up by 2.91%, HCL Tech up by 2.60% and Infosys up by 2.44%. On the flip side, Shriram Finance down by 5.13%, Indusind Bank down by 4.62%, Adani Enterprises down by 3.63%, Bharat Electronics down by 3.50% and NTPC down by 3.43% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 414.69 points or 1.06% to 39,190.40, Hang Seng declined 176.6 points or 0.93% to 19,064.29, Taiwan Weighted lost 69.27 points or 0.3% to 23,011.86, Straits Times fell 63.74 points or 1.68% to 3,798.86, Shanghai Composite weakened 42.87 points or 1.35% to 3,168.52 and KOSPI was down by 6.12 points or 0.24% to 2,515.78. On the flip side, Jakarta Composite was up by 32.25 points or 0.45% to 7,096.84.

European markets were trading higher; UK’s FTSE 100 increased 0.8 points or 0.01% to 8,320.49, France’s CAC rose 22.75 points or 0.3% to 7,513.03 and Germany’s DAX was up by 21.8 points or 0.11% to 20,338.90.