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Indian equity benchmarks remained under pressure in late morning session, impacted by heavy selling at Banking and Consumer discretionary counters along with mixed cues from other Asian markets. Domestic sentiments remained pessimistic, amid reports that with the price situation remaining at 'unacceptably and uncomfortably' high level, members of the RBI's Monetary Policy Committee underlined the need for preventing upward drift of inflation and bringing it down to the target band, as per minutes of its recent policy meeting.

The street paid no heed towards a report stating that labour ministry has said that retirement fund body -- Employee Provident Fund Organization (EPFO) added 18.36 lakh new subscribers in June 2022, registering 43 per cent rise as compared to the year-ago period. EPFO had added 12.83 lakh net new subscribers in June 2021.

On the global front, Asian markets were trading mixed, after Malaysia's trade surplus rose less than expected in July, as exports and imports rose at a softer pace. The data from the statistical office showed that the trade balance logged a surplus of MYR 15.5 billion in July. The trade surplus grew 14.3 percent from the same month last year. Exports increased 38.0 percent yearly in July, after a 38.8 percent growth in June.

The BSE Sensex is currently trading at 59032.20, down by 613.95 points or 1.03% after trading in a range of 58949.10 and 59402.50. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.03%, while Small cap index was down by 0.69%.

The only gaining sectoral indices on the BSE were Power up by 1.02%, Utilities up by 0.92% and FMCG up by 0.49%, while Bankex down by 1.67%, Consumer discretionary down by 1.34%, Basic Materials down by 1.32%, Auto down by 1.22% and Healthcare down by 1.17% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.27%, Hindustan Unilever up by 0.51%, Nestle up by 0.37% and Dr. Reddy's Lab up by 0.31%. On the flip side, Asian Paints down by 2.93%, Kotak Mahindra Bank down by 2.63%, Ultratech Cement down by 2.14%, Axis Bank down by 2.13% and Tata Steel down by 1.91% were the top losers.

Meanwhile, CRISIL Ratings in its latest report has said that the digital lending norms announced by the Reserve Bank of India (RBI) on August 10, 2022, aim to usher in orderly growth and financial stability, check malpractices, strengthen transparency, and protect customer interests. However, it said they would raise operational intensity and compliance costs for lenders in the near term. It said that is because digital lenders have built their entire customer journey via technology-enabled means, including credit underwriting using alternative data sources and artificial intelligence.

According to the report, some of the rules that kick in with immediate effect will have a major impact on the way non-banking financial companies (NBFCs) have been operating in this space. The regulations on direct transfer of disbursements/repayments between borrowers and lenders will impact the 'buy now, pay later' services and prepaid instruments being offered. Business models will have to be tweaked to conform with the new regulations. Another important change is the restriction imposed on scrubbing/reading the smartphones of borrowers. This was a typical part of the underwriting regimen for digital consumer loans, and it will have to be rejigged now.

The report further stated that while overall, the revised norms are expected to enhance levels of corporate governance, transparency and disclosure, clarifications on the use of first-loss default guarantees, which are, still under further examination, bear watching. This aspect is an important feature of the business models for some of the digital lenders today. The new regulatory framework — centred around the digital lending ecosystem of regulated entities (REs) and lending service providers (LSPs) engaged by them to extend various permissible credit facilitation services — directs that all loan disbursements and repayments must strictly flow between the bank accounts of borrower and lender, without any pass-through to the account of LSP or third parties.

The CNX Nifty is currently trading at 17573.70, down by 184.75 points or 1.04% after trading in a range of 17544.25 and 17690.05. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were ITC up by 1.19%, Britannia up by 0.96%, Hindustan Unilever up by 0.57%, Coal India up by 0.51% and Tata Consumer Products up by 0.35%. On the flip side, Asian Paints down by 3.14%, Apollo Hospital Ent. down by 2.88%, Divi's Lab down by 2.78%, Kotak Mahindra Bank down by 2.64% and Hero MotoCorp down by 2.21% were the top losers.

Asian markets were trading mixed; Nikkei 225 slipped 135.83 points or 0.47% to 28,794.50, Taiwan Weighted dropped 163.64 points or 1.06% to 15,245.14, Jakarta Composite lost 80.29 points or 1.12% to 7,092.14 and KOSPI fell 31.01 points or 1.24% to 2,461.68. On the flip side, Shanghai Composite gained 12.22 points or 0.38% to 3,270.30, Straits Times advanced 20.80 points or 0.64% to 3,267.31 and Hang Seng increased 39.49 points or 0.2% to 19,812.52.

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