The benchmark Indian stock indices have opened sharply down this morning amid negative global cues.

US stocks last night witnessed a sharp sell-off from the day's high amid increasing uncertainty around the spread of the coronavirus pandemic.

Join us as we follow the top business news through the day.

Coronavirus lockdowns push more people into hunger

Oil prices drop on demand recovery fears, OPEC+ easing expectations

The coronavirus pandemic continues to play spoilsport for oil's recovery.

Reuters reports: "Oil prices fell more than 2% on Tuesday on worries that new clampdowns on businesses to stem surging U.S. coronavirus cases could threaten fuel demand recovery and expectations that OPEC+ might ease output cuts from August in an upcoming meeting.

U.S. West Texas Intermediate (WTI) crude futures slid 96 cents, or 2.39%, to $39.14 a barrel by 0443 GMT, while Brent crude futures fell 88 cents, or 2.06% to $41.84.

Both benchmark contracts lost just over 1% on Monday.

California's governor on Monday ordered bars to shut and restaurants, movie theatres, zoos and museums to cease indoor operations as coronavirus cases and hospitalizations soared.

The most populous state's two largest school districts, in Los Angeles and San Diego, also said they would teach only online when classes resume in August.

California's moves follow the recent reinstatement of some restrictions in other states, such as Florida and Texas.

“With the California soft lockdown now framing the picture, July could be an even more challenging month for oil than expected with even more demand woes emanating from coronavirus-linked uncertainty,” AxiCorp market strategist Stephen Innes said in a note.

The market will be watching the next move from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, whose Joint Ministerial Monitoring Committee will meet on Wednesday to recommend the next level of cuts.

Under the existing agreement, OPEC+ is set to taper its record supply cut of 9.7 million barrels per day (bpd) to 7.7 million bpd from August through December.

The oil market is getting closer to balance as demand gradually rises, OPEC's secretary general said on Monday."

Abundant liquidity kept short-term rates  soft: RBI bulletin

The Reserve Bank of India (RBI) said it had deployed several conventional and unconventional tools to restore orderly conditions in financial markets and maintain normal functioning of financial intermediaries when COVID-19 sent financial markets in India and the world into a tailspin.

As a result, markets remained resilient, liquid and stable, establishing conditions for a finance-led recovery of the economy ahead of the revival of demand, it said in its monthly bulletin.

It said that with the onset of COVID-19, financial institutions were faced with liquidity stress, loss of access to funding and tightening of financial conditions amid disruption of cash flows and working capital cycles.

Indian shares slip as virus fears persist; banks, financial stocks drag

The Indian stock bourses are down in line with the late sell-off seen last night in US stocks.

Reuters reports: "Indian shares ticked lower on Tuesday led by losses in banking and financial stocks, as domestic coronavirus cases continued to surge, while a weak performance among Asian peers also weighed on the sentiment.

The broader NSE Nifty 50 index fell 0.68% at 10,729.75 by 0345 GMT and the benchmark S&P BSE Sensex was down 0.74% at 36,423.79.

Coronavirus cases in the world's second-most populous country rose to 906,752 as of Tuesday morning, according to the federal health ministry data https://www.mohfw.gov.in, leaving investors concerned about its impact on the Indian economy as many states and cities tighten restrictions again.

Asian shares slipped on simmering Sino-U.S. tensions and persistent coronavirus concerns among investors.

In Mumbai, banking and financial fell further after a Moody's report on Monday warned on COVID-19 related headwinds to Indian banking, which is already facing a high number of bad debt and a loan repayment moratorium which threatens to hurt revenue.

The Nifty banking index fell 1.6% and the financials index shed 1.5% in early Tuesday trading.

Among stocks, HDFC Bank and Axis Bank were the top losers, dropping 1.63% and 1.17%, respectively.

Wipro Ltd was the session's top gainer, advancing 1.36%, ahead of its quarterly earnings report scheduled for later in the evening."

HDFC Bank launches probe into auto loan practices following allegations

An inquiry into possible wrongdoing in auto lending.

PTI reports: "HDFC Bank on Monday said it has launched a probe into its auto lending practices following allegations against the conduct of a long-time executive who retired on March 31 this year.

“We would like to state that the executive concerned who was on an extension of service retired on March 31, 2020 in the normal course of his employment. The bank has a well established process of investigating every complaint that it receives and takes actions as appropriate,” an HDFC Bank spokesperson said.

The auto loan department executive could not be contacted for comments.

The allegations pertain largely to the professional conduct which raises issues about possible conflicts of interest, sources said, stressing the quality of the bank’s auto loan book is strong.

The spokesperson said the “due process” was followed in this instance and asserted that the bank has followed “highest standards of governance and propriety at all times“.

The auto loan book had stood at Rs 83,935 crore as of March 31, 2020, constituting less than a fifth of the overall retail book. The auto loans had grown by only 4.04 per cent in FY20 as against the 14.61 per cent growth in the overall retail advances. It can be noted that auto sales were also in the slow lane for much of the year.

Meanwhile, Munish Mittal, the bank’s chief information officer has decided to move on to pursue higher studies at an overseas university, sources said.

Mittal had joined the lender way back in 1996 and had been serving as the CIO since 2015, they said.

HDFC Bank shares closed 2.26 per cent down at Rs 1,080.40 apiece on BSE on Monday against gains of 0.27 per cent on the benchmark index Sensex."

‘Profitability, asset quality in Indian, ASEAN banks to worsen’

The challenging economic and credit conditions stemming from COVID-19 will weigh on ASEAN and Indian banks’ asset quality and profitability, Moody’s Investors Service said in a new report.

“In ASEAN and India, bank downgrades in 2020 have been driven by Indian banks, following the downgrade of the sovereign in June,” said Eugene Tarzimanov, Moody’s vice-president and senior credit officer.

“That said, the majority of the banks in the region are well-positioned at their ratings, despite a higher share of negative outlooks on bank ratings,” he said.

Moody’s said the asset quality and profitability will deteriorate from good levels in 2019 across most banking systems, with Singapore, Malaysia and the Philippines having the best asset quality with non-performing loans below 2%. While government support measures will offset some of the pressure on banks, they will not fully eliminate the negative impact, the report said.