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Indian equity benchmarks traded near their intraday low points in late morning session, on the back of negative cues from other Asian markets. Traders were cautious, amid a report stating that the current price situation leaves hardly any scope for rationalisation of GST rates on goods and services. Some worries came after another report stated that the government is not planning any additional borrowing and will stick to the borrowing target fixed for the current fiscal year despite sacrificing revenue on account of reduction in duties on petroleum products and other goods.

On the global front, Asian markets were trading mostly in red, after Malaysia's consumer price inflation increased marginally in April. The data from the Department of Statistics showed that consumer prices rose 2.3 percent yearly in April, following a 2.2 percent increase in March. Prices for food and non-alcoholic beverages grew 4.1 percent annually in April and those for furnishings, household equipment and routine household maintenance rose 2.7 percent.

The BSE Sensex is currently trading at 53469.64, down by 279.62 points or 0.52% after trading in a range of 53425.25 and 54102.36. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.83%, while Small cap index was down by 1.30%.

The top gaining sectoral indices on the BSE were Bankex up by 0.35%, IT up by 0.21%, TECK up by 0.18% and Metal up by 0.11%, while Power down by 2.45%, Utilities down by 2.44%, Oil & Gas down by 1.85%, Energy down by 1.82% and Industrials down by 1.78% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 1.21%, HDFC up by 1.04%, Axis Bank up by 0.93%, TCS up by 0.74% and Wipro up by 0.70%. On the flip side, Bajaj Finance down by 2.66%, ITC down by 2.64%, Asian Paints down by 2.61%, Larsen & Toubro down by 2.42% and Reliance Industries down by 2.26% were the top losers.

Meanwhile, the power ministry is working on a scheme for electricity distribution utilities (discoms) to pay off their dues mainly towards generating company (genco), which has the potential to save Rs 19,833 crore on account of late payment surcharge. The inability of Discoms to pay dues impacts the entire value chain of the power sector. Considering this situation, the Ministry of Power is working on a scheme to mitigate the financial woes of the Distribution Companies (Discoms) that are unable to pay their dues.

Delay of payments by a discom to a genco adversely affects the cash flow of the generating firm, which needs to make provisions for input supplies like coal, and for keeping adequate working capital for day-to-day operation of power plants. As per data available on the PRAAPTI portal, as on May 18, 2022, the discoms' overdues (excluding disputed amounts and Late Payment Surcharge (LPSC)) stood at Rs 1,00,018 crore. The LPSC dues were Rs 6,839 crore. The proposed scheme would enable payment of financial dues in easy instalments by the discoms.

A one-time relaxation is being considered to be given to all the discoms wherein the amount outstanding (includes principal and LPSC) on the date of notification of the scheme will be frozen without further imposition of LPSC. The discoms will be given flexibility to pay the outstanding amount in up to 48 instalments. The liquidation of outstanding dues in deferred manner without imposition of LPSC will give discoms time to shore up their finances. At the same time, the generating company will benefit from assured monthly payments which otherwise were not forthcoming to them. However, in case of delay in payment of an instalment by a discom, the late payment surcharge shall be payable on the entire outstanding dues which otherwise was exempted.

The CNX Nifty is currently trading at 15922.70, down by 103.10 points or 0.64% after trading in a range of 15903.70 and 16129.90. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 1.22%, JSW Steel up by 1.14%, Tata Steel up by 0.95%, Axis Bank up by 0.95% and Nestle up by 0.93%. On the flip side, Adani Ports & SEZ down by 4.20%, UPL down by 3.71%, BPCL down by 3.57%, Apollo Hospital Ent. down by 2.82% and Bajaj Finance down by 2.82% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted dropped 108.59 points or 0.67% to 15,995.44, Nikkei 225 slipped 41.14 points or 0.15% to 26,636.66, Hang Seng decreased 25.47 points or 0.13% to 20,145.80 and KOSPI fell 4.48 points or 0.17% to 2,612.74. On the flip side, Shanghai Composite gained 20.35 points or 0.65% to 3,127.81 and Straits Times advanced 26.02 points or 0.82% to 3,205.60.

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