Indian equity benchmarks trimmed some of their losses in today deals, with both Sensex and Nifty coming off their intraday low points. Losses got cut, as traders took some support with Minister of state for Micro, Small and Medium Enterprises (MSMEs) Bhanu Pratap Singh Verma’s statement that 1.31 crore people were employed in the MSMEs incorporated in the financial year 2021-22 (FY22), up by 16% as against 1.13 crore employees in the MSMEs incorporated in FY21.
However, heavy selling at metal, realty and telecom counters kept indices down. Negative cues from other Asian markets also dampened sentiments over the Dalal Street. Asian markets were trading lower, after the World Bank in a report slashed its 2022 China growth forecast to 2.7 per cent, from 4.3 per cent predicted in June, as the pandemic and weaknesses in the property sector hit the world’s second-largest economy.
Nifty futures opened at 18420.00 points against the previous close of 18499.30 and opened at a low of 18231.90 points. Nifty Future closed with an average movement of 217.10 points and a decline of around 75.35 points and 18423.95 points…!!
On the NSE, the midcap 100 index will decline 0.22% and smallcap 100 index is closing decline 0.44%. Speaking of various sectoral indices, the NSE saw gains in only IT and Metal stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.54429 fell from a high of Rs.54825 points to a low of Rs.54350 with a rise of 356 points, a trend of around Rs.54616 and March Silver opened at Rs.67776, fell from a high of Rs.69325 points to a low of Rs.67358, with a rise of 1454 points, a trend of around Rs.68966.
Meanwhile, Union Finance Minister Nirmala Sitharaman has said that scheduled commercial banks (SCBs) have written off loans amounting to Rs 10,09,511 crore during the last five financial years and the process of recovery of dues from the borrowers continues. She said recovery in NPA (non performing asset) accounts, including written-off loans, was an on-going process.
Sitharaman said according to Reserve Bank of India (RBI) data, public sector banks have recovered Rs 4,80,111 crore, including Rs 1,03,045 crore from written-off loans, during the last five financial years. The borrowers of written-off loans continue to be liable for repayment and the process of recovery of dues from the borrower in written-off loan accounts continues. She noted that banks continue to pursue recovery actions initiated in written-off accounts through various recovery mechanisms available.
The actions include filing of a suit in civil courts or in Debts Recovery Tribunals, action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, filing of cases in the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, through negotiated settlement and compromise and sale of NPAs. Therefore, write-off does not benefit the borrowers.
Technically, the important key resistances are placed in Nifty future are at 18474 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 18505 – 18575 levels. Immediate support is placed at 18303 – 18188 levels.