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Indian stock markets continue to trade in deep red amid fresh concerns over the increase in the number of infected COVID-19 cases contributed to the fears that the economic impact will be much larger than earlier estimates. Sentiments were also fragile with reports that ahead of its 'Bharat Bandh' call on February 26, traders' body CAIT wrote to Prime Minister Narendra Modi raising issues related to the GST regime, and alleging violation of e-commerce rules by major e-tailers. Sectoral indices on BSE were witnessing selling with IT and Auto remaining top losing indices, trading lower by over 2% each. Sell off also continued in broader indices with both mid cap and small cap indices trading down by 0.93% and 0.60% respectively. Among blue chip stocks, ONGC was top gainer up by 2.14%, while Tech Mahindra was top loser trading down by 4.78%.

On the global front, Asian markets were trading mixed as hopes for a recovery from the coronavirus pandemic with the global rollout of vaccines were countered by worries about inflation and continuing economic damage. Back home, the market breadth remained pessimistic, as there were 1779 shares on the losing side against 1066 shares on the gaining side, while 164 shares remained unchanged.

The BSE Sensex is currently trading at 50090.83, down by 798.93 points or 1.57% after trading in a range of 50074.06 and 50986.03. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.93%, while Small cap index was down by 0.60%.

The top gaining sectoral indices on the BSE were Metal up by 3.00%, Basic Materials up by 0.92%, and Telecom was up by 0.50%, while IT down by 2.22%, Auto down by 2.02%, Capital Goods down by 2.01%, TECK down by 1.95% and Utilities was down by 1.70% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 2.14%, HDFC Bank up by 1.50%, Kotak Mahindra Bank up by 0.36%, Asian Paints up by 0.05% and Bharti Airtel was up by 0.03%. On the flip side, Tech Mahindra down by 4.78%, Mahindra & Mahindra down by 4.64%, ITC down by 4.28%, Axis Bank down by 3.59% and Larsen & Toubro was down by 3.40% were the top losers.

Meanwhile, Goods and Services Tax (GST) revenue shortfall faced by states is likely to reduce by about Rs 40,000 crore in the current fiscal (FY21) on improved collections over the past four months. The sharp decline in GST collections was estimated to lead to Rs 1.80 lakh crore shortfall in GST revenues of states. This includes Rs 1.10 lakh crore revenue loss on account of GST implementation and Rs 70,000 crore on account of COVID-19 pandemic.

The centre had set up a special window to borrow funds and pass on to the states for meeting the Rs 1.10 lakh crore GST revenue loss. Improved GST collections could bring down the total shortfall amount to around Rs 1.40 lakh crore. Rs 1.10 lakh crore would be borrowed through the special window as planned and a higher mop-up would be utilised to compensate for the loss of revenue due to COVID-19. The centre has already borrowed and releases to the states Rs 1 lakh crore under the special window.

For next fiscal beginning April 1, the GST council will decide on the mechanism for compensating states in its upcoming meeting in March. The revenue loss next fiscal would be much less compared to this fiscal. However, meeting the 14 percent revenue growth would be difficult.

The CNX Nifty is currently trading at 14770.40, down by 211.35 points or 1.41% after trading in a range of 14768.55 and 15010.10. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 5.50%, JSW Steel up by 3.18%, Tata Steel up by 2.28%, ONGC up by 2.19% and Adani Ports was up by 1.73%. On the flip side, Mahindra & Mahindra down by 4.92%, Tech Mahindra down by 4.78%, ITC down by 4.28%, Axis Bank down by 3.59% and Larsen & Toubro down was by 3.43% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 138.11 points or 0.46% to 30,156.03, , Taiwan Weighted strengthened 68.78 points or 0.42% to 16,410.16, Jakarta Composite soared 68.32 points or 1.10% to 6,300.25 and Straits Times advanced 9.86 points or 0.34% to 2,890.50.

On the flip side, Shanghai Composite declined 40.30 points or 1.09% to 3,655.87, Hang Seng decreased 152.51 points or 0.50% to 30,492.22 and KOSPI fell 22.76 points or 0.73% to 3,084.86.