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Key indices extend losses in morning deals
Aug-07-2025

Indian equity benchmarks extended losses in morning deals, as US President Donald Trump slapped an additional 25 per cent duty -- doubling it to 50 per cent -- on Indian goods over New Delhi's continued imports of Russian oil. Traders remained cautious as exchange data showed Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 4,999.10 crore on Wednesday. Some concern also came as Federation of Indian Export Organisations (FIEO) stated that the US decision to impose an additional 25 per cent tariff on Indian goods is ‘extremely shocking’ and will impact 55 per cent of India's exports to America. Sector-wise, majority of auto stocks were trading lower as dealers' body FADA stated that domestic automobile retail sales declined 4 per cent year-on-year in July amid drop in demand for passenger vehicles and two-wheelers. On the global front, Asian markets are trading higher on expectations of an interest rate reduction by the Federal Reserve in September.  

The BSE Sensex is currently trading at 80105.03, down by 438.96 points or 0.54% after trading in a range of 80100.34 and 80421.84. There were 5 stocks advancing against 25 stocks declining on the index. 

The broader indices were trading in red; the BSE Mid cap index fell 0.60%, while Small cap index was down by 0.59%.

The top losing sectoral indices on the BSE were Metal down by 1.13%, Telecom down by 1.04%, Basic Materials down by 0.90%, Auto down by 0.90% and Power down by 0.88%, while there were no gaining sectoral indices on the BSE.  

The top gainers on the Sensex were Eternal up by 1.15%, ITC up by 0.47%, Power Grid Corporation up by 0.26%, Trent up by 0.24% and Titan Company up by 0.22%. On the flip side, Tata Motors down by 2.08%, Adani Ports &SEZ down by 1.99%, Kotak Mahindra Bank down by 1.01%, Tata Steel down by 0.98% and Reliance Industries down by 0.90% were the top losers.

Meanwhile, The Reserve Bank of India (RBI) has issued revised directions on co-lending arrangements (CLA) to provide specific regulatory clarity on the permissibility of such arrangements and address some of the prudential as well as conduct-related aspects. Regulated entities (REs), including banks, NBFCs, and All-India Financial Institutions, can enter into a lending arrangement with other REs for extension of credit to the borrowers, subject to compliance with the extant prudential regulations.

While there is no generic regulatory framework for such lending arrangements, co-lending involving banks and NBFCs has gained traction in the wake of a specific regulatory framework being prescribed for the purpose of priority sector lending. CLA refers to an arrangement, formalised through an ex-ante agreement, between an RE which is originating the loans and another RE which is co-lending, to jointly fund a portfolio of loans in a pre-agreed proportion, involving revenue and risk sharing.

‘Each RE under a CLA shall be required to retain a minimum 10 per cent share of the individual loans in its books,’ said the Reserve Bank of India (Co-Lending Arrangements) Directions, 2025. It further said the credit policy of a RE shall suitably incorporate provisions relating to CLAs, including the internal limit for the proportion of their lending portfolio under CLAs; target borrower segments; due diligence of the partner entities; customer service and grievance redressal mechanism.

The interest rate and any other fees/charges on the underlying loans charged to the borrower shall be based on the contractual agreement, subject to the regulatory norms applicable to the REs. According to the revised norms, all transactions (disbursements/repayments) between the REs, as well as with the borrower, shall be routed through an escrow account maintained with a bank, which could also be one of the REs involved in CLA. The directions shall come into force from January 1, 2026, or from any earlier date as decided by an RE as per its internal policy.

The CNX Nifty is currently trading at 24439.30, down by 134.90 points or 0.55% after trading in a range of 24425.10 and 24542.90. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Eternal up by 1.27%, Hero MotoCorp up by 0.94%, ITC up by 0.55%, Trent up by 0.29% and Power Grid Corporation up by 0.21%. On the flip side, Tata Motors down by 2.11%, Adani Ports &SEZ down by 1.99%, Adani Enterprises down by 1.81%, Shriram Finance down by 1.30% and JIO Financial Services down by 1.22% were the top losers. 

All Asian markets are trading higher; Nikkei 225 surged 209.14 points or 0.51 to 41,004.00, Hang Seng advanced 93.37 points or 0.37 to 25,004.00, Taiwan Weighted added 562.39 points or 2.4 to 24,009.75, Straits Times rose 32.1 points or 0.76 to 4,259.80, Shanghai Composite strengthened 5.99 points or 0.16 to 3,639.98, Jakarta Composite gained 37.02 points or 0.49 to 7,540.77 and KOSPI increased 18.84 points or 0.59 to 3,216.98.
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