After opening the day in the red, share markets in India have continued their downtrend tracking the sell-off in the US stock markets. US stocks continued their downtrend, confirming a correction for the Nasdaq and erasing the Dow and the S&P 500’s gains for the year, as disappointing forecasts from chipmakers and weak home sales data fueled jitters about economic and profit growth. The Nasdaq closed around 12% lower from its August 29 record closing high. It fell 4.4% yesterday – its biggest one-day percentage decline since August 18, 2011.

Sectoral indices are trading on a negative note with stocks in the metal sector and realty sector witnessing maximum selling pressure.

The BSE Sensex is trading down by 328 points (down 1%), while the NSE Nifty is trading down by 107 points (down1%). The BSE Mid Cap index is trading down by 1.2%, while the BSE Small Cap index is trading down by 1.5%.

The rupee is trading at 73.31 to the US$.

Market participants are tracking Bharti Airtel share price, YES Bank share price, Maruti Suzuki share price, BHEL share price, JSW Steel share price, and L&T Technology Services share price as these are among the companies are announcing their quarterly results today.

In the news from the banking sector, as per a leading financial daily, the Reserve Bank of India (RBI) may consider relaxing its prompt corrective action (PCA) framework for loss-making banks.

If done so, this would mark a significant shift in the central bank’s stance.

Banks under PCA face several restrictions, including on lending, until they are nursed back to health. The government has said that credit disbursement has suffered as a number of banks are under PCA.

Note that earlier this year, in May, Finance minister Piyush Goyal had promised all possible support to the 11 state-run banks that are under the Reserve Bank of India’s (RBI) Prompt Corrective Action (PCA) framework. He had also expressed confidence that public sector banks will overcome legacy issues very soon.

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