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Weak trade persists in early afternoon session
Jul-11-2025

Indian markets continued to trade lower in early afternoon session amid tariff fears. Besides, weaker-than-expected Q1 earnings of IT major --TCS forced markets to trade lower. Traders took note of report that Special Secretary in the Department of Commerce Rajesh Agrawal has said that India needs to strengthen its shipping ecosystem to reduce vulnerability in times of global crises and promote the country's trade. He said ‘Indian flag vessels are very limited in number, and this leads to around $50 billion of trade deficit that we do have in the services sector solely due to maritime logistics.’ On the global front, Asian markets were trading mostly in green even as Malaysia's industrial output growth moderated for the second straight month in May. Industrial production rose 0.3 percent year-over-year in May, much slower than the 2.7 percent increase in the previous month. Moreover, this was the slowest growth in the current growth sequence that began in January 2024. 

The BSE Sensex is currently trading at 82514.71, down by 675.57 points or 0.81% after trading in a range of 82451.50 and 83040.74. There were 7 stocks advancing against 22 stocks declining on the index, while 1 stock remained unchanged. 

The broader indices were trading in red; the BSE Mid cap index declined 0.65%, while Small cap index was down by 0.72%.

The few gaining sectoral indices on the BSE were FMCG up by 0.73%, Healthcare up by 0.18% and Utilities was up by 0.04%, while TECK down by 1.79%, IT down by 1.64%, Auto down by 1.32%, Telecom down by 1.27% and Oil & Gas was down by 1.15% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 4.66%, Ultratech Cement up by 0.58%, Sun Pharma up by 0.51%, Axis Bank up by 0.49% and NTPC up by 0.32%. On the flip side, TCS down by 2.73%, Mahindra & Mahindra down by 2.47%, Bharti Airtel down by 2.02%, Infosys down by 1.65% and Bajaj Finserv down by 1.63% were the top losers.

Meanwhile, domestic ratings agency Crisil has said that private asset reconstruction companies' assets under management (AUM), measured in terms of security receipts, is set to decline by up to 6 per cent in FY26 to Rs 1.05 lakh crore as redemptions are outpacing acquisitions. It said this is on top of a 15 per cent decline in the AUM in FY25, pitching for a slew of changes that such entities need to adopt going forward. It also said business model realignment is imperative in a dynamic regulatory landscape.

According to the report, competition from government-supported National Asset Reconstruction Company (NARCL), which works on a guarantee-backed model, dents the competitiveness of private ARCs. It said that proposed regulatory changes under which securitisation of retail non-performing assets will be allowed, make it more challenging. With the securitisation of NPAs potentially disrupting the industry's status quo, ARCs may have to seek alternative opportunities to drive growth and profitability. With the Reserve Bank of India's (RBI) draft guidelines of April 2025 providing a framework for this new product, ARCs must prepare to pivot and adapt to a rapidly changing landscape.

The agency's suggestions come amid reports of several private ARCs either winding down or shutting operations in the country. It said acquisitions by private ARCs will remain subdued in FY26. It noted that SRs (security receipts) issued last fiscal had already reduced 29 per cent to Rs 22,000 crore from Rs 31,000 crore in FY24. It added that the decline in corporate NPAs led to slower addition of available opportunities, but there exists a large stock of NPAs on bank books, and this is where the competition by the state-run NARCL hurts private ARCs.  

The CNX Nifty is currently trading at 25164.60, down by 190.65 points or 0.75% after trading in a range of 25136.75 and 25322.45. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 4.64%, Nestle up by 0.92%, SBI Life up by 0.83%, Axis Bank up by 0.58% and Sun Pharma up by 0.51%. On the flip side, TCS down by 2.71%, Mahindra & Mahindra down by 2.45%, Apollo Hospital down by 2.38%, Wipro down by 2.38% and Bajaj Auto down by 2.25% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 324.57 points or 1.33% to 24,352.94, Taiwan Weighted added 57.78 points or 0.25% to 22,751.03, Jakarta Composite gained 30.23 points or 0.43% to 7,035.60, Straits Times rose 16.87 points or 0.41% to 4,092.57 and Shanghai Composite was up by 8.38 points or 0.24% to 3,518.06. On the flip side, KOSPI dropped 7.46 points or 0.23% to 3,175.77 and Nikkei 225 was down by 76.68 points or 0.19% to 39,569.68.
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