Key gauges extend gains as RBI keeps repo rate unchanged

Indian equity benchmarks extended gains in morning deals, after the Reserve Bank of India's (RBI) Monetary Policy Committee decided to maintain the status quo, keeping the repo rate steady at 6.5 percent for the tenth consecutive meeting. The RBI also held its CPI inflation forecast for FY25 steady at 4.5 percent. Traders took support with Oil Minister Hardeep Singh Puri’s statement that India will be able to navigate through any oil supply shock that may result from the potential widening of the conflict in the Middle East. He said while India, the world's third largest oil importing and consuming nation, is more than 85 per cent dependent on imports to meet its crude oil needs, the situation is manageable and there is no need for concern. Sector-wise, stocks related to Gem and Jewellery remained in watch as the Gem and Jewellery Export Promotion Council (GJEPC) of India said the International Gem and Jewellery Show (IGJS) Dubai, which commenced on October 8, is expected to boost exports to the UAE by 20 per cent in this calendar year. On the global front, Asian markets are trading mixed as traders are cautious ahead of the release of key US inflation data and the Fed's latest meeting minutes later in the week for additional clues on the Fed's interest rate trajectory.

The BSE Sensex is currently trading at 81992.29, up by 357.48 points or 0.44% after trading in a range of 81692.46 and 82191.78. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.14%, while Small cap index was up by 1.49%.

The top gaining sectoral indices on the BSE were Realty up by 2.23%, Power up by 1.56%, Industrials up by 1.39%, Healthcare up by 1.35% and Capital Goods up by 1.31%, while FMCG down by 0.75% and Metal down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.59%, SBI up by 2.26%, Axis Bank up by 2.22%, Tata Motors up by 2.07% and Bajaj Finserv up by 1.91%. On the flip side, Nestle down by 3.73%, ITC down by 1.17%, Hindustan Unilever down by 1.07%, JSW Steel down by 0.88% and HDFC Bank down by 0.35% were the top losers.

Meanwhile, CRISIL Ratings in its latest report has said that schools and colleges will report 12-14% revenue growth this fiscal (FY25), riding on higher enrolments, which allows for upward fee revisions, and students scouting for new course offerings. The growth will be despite the high base following three consecutive years of high-teen growth.

It stated improved enrolments and better utilisation of assets should cover increasing salary costs for faculty and other ancillary expenses for new courses and, thereby, aid in maintaining the operating margin at around 28%. Additionally, as existing courses and seats remain highly utilised, educational institutes will continue to make capital expenditure (capex) to improve infrastructure and enhance intake capacities. However, strong cash flow (from higher revenue and timely realisation of fees) limits reliance on debt for capex and supports the credit risk profile.

An analysis of 96 educational institutes rated by CRISIL Ratings, accounting for almost Rs 20,000 crore fee income, indicates as much. Enrolments for the educational institutes in the K-12 segment, largely schools, will continue to rise due to two reasons – rising demand for high-quality education and improved affordability as income levels rise. Besides, it mentioned the government aims to increase the gross enrolment ratio for higher education to 50% by 2035, from under 30% currently, by promoting new institutions while expanding and improving current institutions and increasing penetration among the addressable population. Even as intake capacity increases, utilisation rates for schools and higher-education institutes may improve to 86-87% by this fiscal from 85% last fiscal.

The CNX Nifty is currently trading at 25139.40, up by 126.25 points or 0.50% after trading in a range of 25031.35 and 25190.35. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 4.19%, Bajaj Finance up by 2.71%, Trent up by 2.68%, SBI up by 2.30% and Axis Bank up by 2.17%. On the flip side, Nestle down by 3.79%, Britannia Industries down by 1.30%, ITC down by 1.20%, Hindustan Unilever down by 1.16% and ONGC down by 1.01% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 334.37 points or 0.86% to 39,271.91, Taiwan Weighted added 187.04 points or 0.83% to 22,798.43 and Straits Times rose 13.54 points or 0.38% to 3,589.23.

On the flip side, Jakarta Composite plunged 5.53 points or 0.07% to 7,551.61, Shanghai Composite weakened 184.94 points or 5.6% to 3,304.84 and Hang Seng declined 291.68 points or 1.41% to 20,635.11.