IGI Logo

Indian equity benchmarks trimmed some of their losses in early afternoon deals, with both Sensex and Nifty coming off their intraday low points. Losses got cut, as traders took some support with Minister of state for Micro, Small and Medium Enterprises (MSMEs) Bhanu Pratap Singh Verma’s statement that 1.31 crore people were employed in the MSMEs incorporated in the financial year 2021-22 (FY22), up by 16% as against 1.13 crore employees in the MSMEs incorporated in FY21. However, heavy selling at metal, realty and telecom counters kept indices down. Negative cues from other Asian markets also dampened sentiments over the Dalal Street. Asian markets were trading lower, after the World Bank in a report slashed its 2022 China growth forecast to 2.7 per cent, from 4.3 per cent predicted in June, as the pandemic and weaknesses in the property sector hit the world's second-largest economy.

The BSE Sensex is currently trading at 61319.04, down by 487.15 points or 0.79% after trading in a range of 61102.68 and 61612.73. There was 1 stock advancing against 29 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.86%, while Small cap index was down by 0.33%.

There was no gaining sectoral indices on the BSE, while Metal down by 1.70%, Realty down by 1.66%, Telecom down by 1.62%, Auto down by 1.35% and Utilities down by 0.93% were the top losing indices on BSE.

The only gainer on the Sensex was TCS up by 0.35%. On the flip side, Hindustan Unilever down by 2.01%, Tata Motors down by 1.94%, Mahindra & Mahindra down by 1.91%, Tata Steel down by 1.74% and Bharti Airtel down by 1.65% were the top losers.

Meanwhile, Union Finance Minister Nirmala Sitharaman has said that scheduled commercial banks (SCBs) have written off loans amounting to Rs 10,09,511 crore during the last five financial years and the process of recovery of dues from the borrowers continues. She said recovery in NPA (non performing asset) accounts, including written-off loans, was an on-going process.

Sitharaman said according to Reserve Bank of India (RBI) data, public sector banks have recovered Rs 4,80,111 crore, including Rs 1,03,045 crore from written-off loans, during the last five financial years. The borrowers of written-off loans continue to be liable for repayment and the process of recovery of dues from the borrower in written-off loan accounts continues. She noted that banks continue to pursue recovery actions initiated in written-off accounts through various recovery mechanisms available. The actions include filing of a suit in civil courts or in Debts Recovery Tribunals, action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, filing of cases in the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, through negotiated settlement and compromise and sale of NPAs. Therefore, write-off does not benefit the borrowers.

The minister said according to RBI guidelines and policy approved by banks' boards, NPAs, including those in respect of which full provisioning had been made on completion of four years, were removed from the balance sheet of the bank concerned by way of write-off. Banks evaluate and consider the impact of write-offs as part of their regular exercise to clean up their balance sheet, avail of tax benefit and optimise capital, in accordance with RBI guidelines and policy approved by their boards.

 
The CNX Nifty is currently trading at 18265.30, down by 155.15 points or 0.84% after trading in a range of 18202.65 and 18355.20. There were 2 stocks advancing against 48 stocks declining on the index.

The only gainers on Nifty were Adani Enterprises up by 0.90% and TCS up by 0.48%. On the flip side, Hindalco down by 2.67%, Eicher Motors down by 2.53%, UPL down by 2.47%, Tata Motors down by 1.95% and Mahindra & Mahindra down by 1.91% were the top losers.

All Asian markets were trading lower; Nikkei 225 slipped 669.61 points or 2.46% to 26,568.03, Taiwan Weighted dropped 263.29 points or 1.82% to 14,170.03, Straits Times trembled 4.58 points or 0.14% to 3,252.03, Shanghai Composite declined 31.02 points or 1% to 3,076.10, KOSPI fell 18.88 points or 0.8% to 2,333.29, Jakarta Composite lost 46.66 points or 0.69% to 6,733.04 and Hang Seng decreased 337.78 points or 1.75% to 19,015.03.

Above views are of the author and not of the website kindly read disclaimer