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Indian stock markets turned red in noon deals as traders opted to book profit on private report stating that new restrictions in India due to rising Covid-19 cases could lower the nation’s economic growth by about a quarter of a percentage point in the current fiscal year. Sentiments also remain dampened on report that foreign Institutional Investors (FIIs) were stood as net sellers in the capital market as they offloaded shares worth Rs 1,926.77 crore on Thursday, exchange data showed. Sentiments also remain dented with India Ratings and Research’s statement that the Omicron variant spread will impact the January-March quarter GDP by 0.40 per cent and shave off 0.10 per cent from the FY22 growth, as many states resort to restrictions to limit infections. It added curbs in various forms such as reducing the capacity of market/market complexes and night/weekend curfews to check human mobility/contact have already started in several states, which are impacting economic activities.

On the global front, Asian markets were trading mostly in green on optimism of economic rebound and as crude oil rates improves. Back home, in scrip specific development, Tata Teleservices (Maharashtra) (TTML), the Tata Group telecom services company, has entered the list of top-100 most valued companies in terms of market captialisation in the country on the back of a strong rally. The stock hit a fresh record high at Rs 264 (up 5 per cent) and has rallied a whopping 567 per cent in the last three months.

The BSE Sensex is currently trading at 59484.60, down by 117.24 points or 0.20% after trading in a range of 59401.44 and 60130.18. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.49%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were Energy up by 0.97%, Oil & Gas up by 0.84%, Basic Materials up by 0.83%, PSU up by 0.58% and FMCG was up by 0.55%, while Capital Goods down by 0.76%, Telecom down by 0.43%, Industrials down by 0.29% and Auto was down by 0.22% were the few losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.74%, Tech Mahindra up by 1.16%, Wipro up by 1.11%, Reliance Industries up by 0.93% and Hindustan Unilever was up by 0.90%. On the flip side, Bajaj Finserv down by 1.95%, Bajaj Finance down by 1.48%, HDFC down by 1.07%, Larsen & Toubro down by 1.04% and Mahindra & Mahindra was down by 0.75% were the top losers.

Meanwhile, SBI Research in its latest report has said that emergency Credit Line Guarantee Scheme (ECLGS) launched in 2020 to provide relief to micro, small and medium enterprises (MSMEs) impacted by COVID-19 pandemic, has saved 13.5 lakh firms from going bankrupt and consequently 1.5 crore jobs.

In absolute terms, the report claimed MSME loan accounts worth Rs 1.8 lakh crore were saved from slipping into NPA during the period and this is equivalent to 14 per cent of the outstanding MSME credit being saved from becoming NPA. As per to the report, if these units had turned non-performing, then 1.5 crore workers would have become unemployed. In effect, the ECLGS saved the livelihood for 6 crore families (assuming four family members per worker including herself).

The report further suggested revamping of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for boosting credit flow to the sector. It noted that interestingly, CGTMSE portfolio have more than 55 per cent recovery rate, low portfolio delinquency, low capital requirement but still an unpopular product, and added that conversely, the non CGTMSE portfolio/ collateralised has a 25 per cent recovery rate, high portfolio delinquency implying much higher loan loss provisions with high capital requirement but still a popular portfolio.

The CNX Nifty is currently trading at 17732.55, down by 13.35 points or 0.08% after trading in a range of 17704.55 and 17905.00. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 4.21%, ONGC up by 3.28%, Tata Consumer Products up by 1.81%, Asian Paints up by 1.70% and Hindalco was up by 1.54%. On the flip side, Bajaj Finserv down by 1.91%, Bajaj Finance down by 1.58%, HDFC down by 1.04%, Larsen & Toubro down by 0.93% and Mahindra & Mahindra was down by 0.75% were the top losers.

Asian markets were trading mostly in green, Jakarta Composite soared 44.39 points or 0.67% to 6,697.74, KOSPI rose 34.15 points or 1.17% to 2,954.68, Shanghai Composite gained 5.94 points or 0.17% to 3,592.02, Hang Seng increased 387.26 points or 1.68% to 23,460.12 and Straits Times was up by 21.04 points or 0.66% to 3,205.34. On the flip side, Taiwan Weighted dropped 198.16 points or 1.08% to 18,169.76 and Nikkei 225 was down by 9.31 points or 0.03% to 28,478.56.

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