Domestic indices continue to trade higher in late morning deals

Domestic equity indices continued to trade in green in late morning deals as market participants indulged in enlarging their positions. Buying in Maruti Suzuki, Tata Motors, Bajaj Finserv, HCL and Tata Steel helped the markets to trade higher. Falling crude oil prices in overnight supported domestic sentiments. Some support came in as Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Amardeep Singh Bhatia said that the government is looking at a target of $100 billion foreign direct investment (FDI) inflows per annum in the coming years, in line with India’s thrust towards the Make in India programme. However, broader indices underperformed their large peers with BSE Mid cap index and Small cap index falling in the range of 0.30-0.50%. On the BSE sectoral front, traders were seen pilling up positions in IT, Metal, TECK, Auto and Basic Materials, while selling was witnessed in Consumer Durables, Power, Oil & Gas, Capital Goods and Utilitie.

On the global front, Asian markets were trading mostly in green, with markets in the region led by Hong Kong’s Hang Seng index and mainland Chinese markets extending gains. Back home, in the stock specific development, PB Fintech dropped after the company indicated that it may foray into the healthcare space.

The BSE Sensex is currently trading at 85396.19, up by 226.32 points or 0.27% after trading in a range of 85106.74 and 85462.62. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.48%, while Small cap index down by 0.30%.

The top gaining sectoral indices on the BSE were IT up by 0.53%, Metal up by 0.50%, TECK up by 0.44%, Auto up by 0.38% and Basic Materials up by 0.17%, while Consumer Durables down by 1.34%, Power down by 0.60%, Oil & Gas down by 0.58%, Capital Goods down by 0.46% and Utilities down by 0.39% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 3.61%, Tata Motors up by 1.93%, Bajaj Finserv up by 1.83%, HCL up by 1.31% and Tata Steel up by 1.11%. On the flip side, Mahindra & Mahindra down by 1.39%, NTPC down by 0.99%, Power Grid down by 0.54%, Titan down by 0.31% and Larsen & Toubro down by 0.22% were the top losers.

Meanwhile, Credit rating agency ICRA in its latest report has said that the organised gold loans (GL) by banks and non-banking financial companies (NBFCs) are likely to exceed Rs 10 trillion in the current financial year (FY25) and are set to reach Rs 15 trillion by March 2027. It highlighted that banks remain dominant driven by their gold jewellery-backed agriculture loans. At the same time, NBFCs hold the pole position in retail gold loans and are expected to expand at 17-19% in FY25. The moderation in competitive intensity is leading to some expansion in the loan yields of the NBFCs, however their yields are expected to be lower by 200-300 bps than the peak levels seen 4-5 years back.

The rating agency said overall organised GL expanded at a compounded annual growth rate (CAGR) of 25% over the period FY20-FY24, driven by banks, which expanded these loans at a higher CAGR of 26%, while the NBFCs expanded theirs at 18% during the same period. Bank GL growth was driven by agriculture loans backed by gold jewellery, which grew at a CAGR of 26% during FY20-FY24, while their retail GLs grew by 32% on a lower base. Consequently, the share of the NBFCs reduced during this period, which were largely focussed on retail GLs for consumption or business purposes.

According to the report, public sector banks (PSBs) accounted for about 63% of the overall GL in March 2024, up from 54% in March 2019, while the NBFC and private banks’ shares moderated by equal measure during this period. The NBFCs, however, continue to hold a stable share in the retail GL over the last 3-4 years. ICRA expects NBFC GL to expand at 17-19% in FY2025 and projects it to grow at a CAGR of 14-15% during FY2026-FY2027.

The CNX Nifty is currently trading at 26067.80, up by 63.65 points or 0.24% after trading in a range of 25998.40 and 26087.80. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 3.54%, Tata Motors up by 2.01%, Bajaj Finserv up by 1.71%, HCL up by 1.29% and Tata Consumer up by 1.27%. On the flip side, Hero MotoCorp down by 1.86%, ONGC down by 1.72%, Mahindra & Mahindra down by 1.44%, Divi's Lab down by 1.04% and BPCL down by 0.88% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 547.22 points or 2.86% to 19,676.32, Shanghai Composite strengthened 52.81 points or 1.82% to 2,949.12, Straits Times rose 17.1 points or 0.48% to 3,600.37, KOSPI increased 62.41 points or 2.4% to 2,658.73, Nikkei 225 surged 949.86 points or 2.51% to 38,820.12 and Taiwan Weighted added 47.47 points or 0.21% to 22,809.07. However, Jakarta Composite plunged 17.64 points or 0.23% to 7,723.26.