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Benchmarks add some losses in morning deals
Oct-21-2021

Indian equity benchmarks added some losses and continued to trade in red in morning deals, amid weak cues from their global peers. Traders overlooked India Ratings and Research’s (Ind-Ra) report stated that it witnessed a continuous recovery in the average current collection efficiency to 80 percent in August 2021 from 79 percent in July 2021 across its 143 rated securitisation transactions. It noted that there has been a 10 percentage point increase in the collection efficiency since May 2021 for all the outstanding transactions, after reducing by 13.4 percentage points from March-May 2021.  Market participants also paid no heed towards the labour ministry stating that retail inflation for farm workers and rural labourers eased to 2.89 per cent and 3.16 per cent, respectively, in September, mainly due to lower prices of certain food items. Sectorally, Metal sector stocks remained in focus as rating agency ICRA revised its non-ferrous metals sector outlook to positive from stable on the back of robust prices and improving demand despite a near-term concern of coal availability and increased cost of production for the non-ferrous metal companies. On the global front, Asian markets were trading mostly in red as investors weighed corporate earnings, elevated inflation and risks from China’s property sector.

The BSE Sensex is currently trading at 61131.52, down by 128.44 points or 0.21% after trading in a range of 61059.29 and 61621.20. There were 12 stocks advancing against 18 stocks declining on the index.

The broader index was trading in red; the BSE Mid cap index fell 0.21%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.31%, PSU up by 1.09%, Utilities up by 0.71%, Power up by 0.69% and Bankex up by 0.56%, while IT down by 1.32%, Consumer Durables down by 1.20%, TECK down by 1.16%, Telecom down by 0.61% and Consumer Discretionary down by 0.54% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 2.28%, Power Grid Corporation up by 1.16%, HDFC up by 1.03%, NTPC up by 0.68% and SBI up by 0.64%. On the flip side, Tech Mahindra down by 2.51%, HCL Technologies down by 2.15%, TCS down by 1.35%, Indusind Bank down by 1.24% and Reliance Industries down by 1.13% were the top losers.

Meanwhile, India Ratings and Research (Ind-Ra) in its latest report has said that it witnessed a continuous recovery in the average current collection efficiency to 80 percent in August 2021 from 79 percent in July 2021 across its 143 rated securitisation transactions. It noted that there has been a 10 percentage point increase in the collection efficiency since May 2021 for all the outstanding transactions, after reducing by 13.4 percentage points from March-May 2021. 

The agency said there is likely to have been a further improvement in September 2021 collections. Securitisation involves transactions where credit risks in assets are redistributed by repackaging them into tradable securities with different risk profiles. It may give investors of various classes an access to exposures which they otherwise might be unable to access directly. It said there is an improvement in the current collections across asset classes, except in unsecured business loans and tractor loans.

With the festive season, the agency expects demand to pick-up, not only for the non-discretionary sector, but also for discretionary products. It noted that this will allow small businesses to perform better. It also said that the rural area impacted substantially from the second Covid-19 wave, there is still a downward pressure on collections for its rated tractor loan transactions. It added that prospects for the agricultural sector and rural demand looks promising, which could help borrowers in the near term.

The CNX Nifty is currently trading at 18232.35, down by 34.25 points or 0.19% after trading in a range of 18217.35 and 18384.20. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Indian Oil Corporation up by 3.26%, Kotak Mahindra Bank up by 2.11%, BPCL up by 1.90%, ONGC up by 1.61% and HDFC up by 1.04%. On the flip side, Tech Mahindra down by 2.57%, HCL Tech. down by 2.26%, TCS down by 1.43%, Hero MotoCorp down by 1.24% and Indusind Bank down by 1.17% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 461.06 points or 1.58% to 28,794.49, Hang Seng decreased 75.76 points or 0.29% to 26,060.26, Jakarta Composite lost 3.92 points or 0.06% to 6,652.08, KOSPI fell 1.43 points or 0.05% to 3,011.70 and Straits Times trembled 0.30 points or 0.01% to 3,197.78.

On the flip side, Shanghai Composite gained 16.62 points or 0.46% to 3,603.62 and Taiwan Weighted strengthened 24.66 points or 0.15% to 16,912.48.
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