Markets touch day’s low levels in late afternoon session

Indian equity markets traded near day’s low levels in late afternoon session on account of selling by funds and retail investors. Traders overlooked the private report that Advance direct tax receipts from companies, limited liability partnerships (LLPs) and individuals rose by 16.8% on year for the third quarter of the current financial year. As of December 15, the third quarter advance tax payment stood at Rs 3.15 lakh crore compared with Rs 2.7 lakh crore a year ago.  On the global front, all Asian markets were trading lower as investors eyed this week's interest rate decisions from the Federal Reserve, the Bank of Japan and Bank of England for hints on where interest rates are headed in 2025. European markets were trading lower due to linger political uncertainties in Germany and France, and ahead of the release of German Ifo business climate index and ZEW economic sentiment numbers for December later in the day. 

The BSE Sensex is currently trading at 80696.78, down by 1051.79 points or 1.29% after trading in a range of 80639.97 and 81613.64. There were 2 stocks advancing against 28 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.64%, while Small cap index was down by 0.41%.

The only gaining sectoral index on the BSE was Realty was up by 0.23%, while Telecom down by 1.95%, Metal down by 1.68%, Energy down by 1.46%, Auto down by 1.39% and Bankex was down by 1.39% were the top losing indices on BSE.

The few gainers on the Sensex were ITC up by 0.39% and Hindustan Unilever up by 0.22%. On the flip side, Bharti Airtel down by 2.97%, JSW Steel down by 2.26%, Indusind Bank down by 2.09%, TCS down by 1.95% and Asian Paints was down by 1.94% were the top losers.

Meanwhile, with an aim to minimize distress selling by farmers, the government has launched the Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF). This scheme provides a corpus of Rs 1,000-crore for post-harvest finance availed by farmers against electronic negotiable warehouse receipts (e-NWRs) after depositing commodities in Warehousing Development and Regulatory Authority (WDRA) accredited warehouses.

The credit guarantee schemes are expected to enhance the availability and accessibility of finances for the targeted beneficiaries, as they play an important role in economic growth. The credit guarantee scheme for e-NWR based pledge Financing is in demand from various stakeholders, especially the banking sector. The credit guarantee scheme will serve to increase post-harvest lending against e-NWRs and thereby, play a significant role in improving farmers’ income.

This scheme majorly focuses on Small and Marginal Farmers, Women, SC, ST and Divyangjan (PwD) farmers with a minimal guarantee fee. Besides, small traders (MSMEs), FPOs are also benefited under this scheme. Loans extended to small and marginal farmers up to Rs 75 lakh will have coverage of 80 to 85% and loans extended to MSMEs/FPO’s /traders up to Rs 200 lakh will have coverage up to 75% under the scheme.

The CNX Nifty is currently trading at 24324.25, down by 344.00 points or 1.39% after trading in a range of 24313.65 and 24624.10. There were 3 stocks advancing against 47 stocks declining on the index.

The top gainers on Nifty were Cipla up by 0.30%, ITC up by 0.23% and Hindustan Unilever up by 0.16%. On the flip side, Shriram Finance down by 4.76%, Bharti Airtel down by 2.97%, Grasim Industries down by 2.54%, Hindalco down by 2.35% and Hero MotoCorp down by 2.29% were the top losers.

All Asian markets were trading lower; Jakarta Composite plunged 115.62 points or 1.59% to 7,143.01, Hang Seng declined 95.01 points or 0.48% to 19,700.48, Nikkei 225 slipped 92.81 points or 0.24% to 39,364.68, KOSPI dropped 32.16 points or 1.31% to 2,456.81, Shanghai Composite weakened 24.84 points or 0.74% to 3,361.49, Taiwan Weighted lost 21.89 points or 0.1% to 23,018.01 and Straits Times was down by 20.45 points or 0.54% to 3,800.58.

European markets were trading lower; UK’s FTSE 100 decreased 68.76 points or 0.83% to 8,193.29, France’s CAC fell 18.38 points or 0.25% to 7,338.70 and Germany’s DAX was down by 27.17 points or 0.13% to 20,286.64.