Sensex, Nifty Post Worst Week Since May; Nifty Bank Falls 2%

Indian equity markets posted their first weekly loss in three, after witnessing a sell-off in-line with that witnessed in global equities.

The S&P BSE Sensex ended 1.6% lower at 38,357 while the NSE Nifty 50 index ended below the mark of 11,333, down 1.7%. Maruti Suzuki India was the only stock out of the 50 Nifty constituents that ended with gains in today's session.

Banks were the major laggards in today's session. The Nifty Bank ended 2.1% lower in today's session, declining more than 450 points. The index ended 6% lower for the week, after having gained 10% in the week ending August 28. The PSU Bank index too declined 9% during the week.

Metals were the top laggards in today's session, with the index declining nearly 3% while Nifty Realty and Nifty Pharma fell over 2% each.

The FMCG and I.T. index ended 1% lower while Media and Auto, which were the only two sectoral gainers through the session, gave up gains to end lower as well.

Broader markets saw losses that were in-line with benchmarks. The midcap index ended 1.5% lower while the smallcap index declined 1%.

The India Volatility Index ended 7.1% higher at 21.95.

Market breadth remained in favour of the laggards. 570 stocks on the NSE ended with gains while 1,247 stocks posted losses.

Shares fell as much as 2.4% to Rs 187. The stock trades at the lowest in over two months.

The Reserve Bank of India revised guidelines for priority sector lending, saying that the revised rules will enable better penetration to credit deficient areas.

Among the many revisions, one such revision was the doubling of loan limits for companies in the renewable energy space.

Loan limits for renewable energy have been increased to Rs 30 crore from the earlier Rs 15 crore, the RBI statement said. Listed companies within this space include Inox Wind and Sterling & Wilson Solar.

Shares of Inox Wind are off the day's high after gaining as much as 8.8% to Rs 52. The stock however is at a 52-week high and is up for the fourth straight day.

Shares of Sterling & Wilson Solar too are up for the fourth straight day, gaining as much as 11% to Rs 285.5.

The company has shared a business update for the month of August for its subsidiary Equitas Small Finance Bank:

• Collection efficiency for Micro Finance business at 77%, Small business loans at 105% and vehicle finance at 72% in the month of August.
• Overall loans under moratorium down to 35% in August from 43% in July and 51% in June.
• Micro Finance loans under moratorium at 25% in August from 42% in July and 59% in June.
• Small business loans under moratorium at 37% in August from 40% in July and 42% in June.
• New CV Finance loans under moratorium at 47% in August from 54% in July and 65% in June.
• Used CV Finance loans under moratorium at 55% in August from 60% in July and 70% in June.

Shares are off the day's low after falling as much as 4.3% to Rs 51. The stock currently trades 0.6% lower and is down for the fifth straight day.

Benchmark indices in Europe have opened lower and extended declines for the week, in-line with global peers.

The Stoxx 600 has opened 0.8% lower with all sectors opening lower other than banks.

Asian markets have ended over 1% lower while futures on the Dow Jones are trading lower by 150 points.

Brent crude trades 1% lower at 1% lower at $43.64 while Gold is up 0.3% at 1,935.95/Oz.

Let's take a look at how benchmark indices have opened across Europe:

• Euro Stoxx 50 down 0.95% at 3,272
• DAX down 1.4% at 13,057
• CAC down 1.1% at 4,953
• FTSE 100 down 0.9% at 5,798
• IBEX 35 down 0.2% at 6,994