Domestic indices continue to trade flat in late morning deals

Domestic equity indices continued to trade flat in late morning deals amid weak cues from other Asian markets. Gains in NTPC, Bajaj Finance, Maruti Suzuki, Kotak Mahindra Bank and Tech Mahindra were offset by losses in Ultratech Cement, Indusind Bank, Asian Paints, Bharti Airtel and SBI. Depreciation in Indian rupee against dollar weighed down sentiments. Rupee weakened by 17 paise to 84.47 against the dollar at the Inter-bank Foreign Exchange market on account of increased demand for the American currency from importers and banks. On the BSE sectoral front, traders were seen pilling up positions in Utilities, Power, Industrials, Capital Goods and PSU, while selling was witnessed in Realty, Oil & Gas, Healthcare, Energy and Consumer Durables.

On the global front, Asian markets were trading mostly in red after China’s industrial profits dropped by 10% in October from a year ago, in another sign that Beijing’s recent stimulus measures have yet to reverse a slump in corporate earnings. In the stock specific development, Mahindra and Mahindra (M&M) gained after its subsidiary, Mahindra Electric Automobile has launched two new electric Sports Utility Vehicles (SUVs): the XEV 9e and BE 6e. 

The BSE Sensex is currently trading at 80007.49, up by 3.43 points after trading in a range of 79844.49 and 80170.16. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.01%, while Small cap index was up by 0.71%.

The top gaining sectoral indices on the BSE were Utilities up by 1.63%, Power up by 1.43%, Industrials up by 1.00%, Capital Goods up by 0.82% and PSU up by 0.58%, while Realty down by 0.81%, Oil & Gas down by 0.48%, Healthcare down by 0.33%, Energy down by 0.23% and Consumer Durables down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.95%, Bajaj Finance up by 1.42%, Maruti Suzuki up by 1.24%, Kotak Mahindra Bank up by 0.79% and Tech Mahindra up by 0.75%. On the flip side, Ultratech Cement down by 1.19%, Indusind Bank down by 0.97%, Asian Paints down by 0.90%, Bharti Airtel down by 0.86% and SBI down by 0.62% were the top losers.

Meanwhile, National Bank for Agriculture and Rural Development (NABARD) Chairman Shaji K V has said that cooperative banks are expected to be digitised by March 2025 with a view to streamline operations and enhance the efficiency of these financial institutions. The Reserve Bank of India (RBI) has mandated all cooperative banks to adopt the Core Banking Solution (CBS) marking a significant step towards modernisation.

He said NABARD is proposing to set up a common shared services entity across the country for all rural cooperatives. Both government and the RBI have agreed in principle for this entity.  He said ‘we jointly with the central government and cooperative banks will set up a separate company for digital adoption’. This entity will also need lot of fintech collaboration and there are a lot of opportunities for fintechs to partner with both regional rural banks (RRBs) and cooperative banks. As smaller entities, most cooperative banks are currently not able to invest in technology.  

Shaji further said fintechs must look to enhance their focus on the cooperatives sector and RRBs, noting that both are engaging with technology in a larger way. He said there will be ample room for fintechs to devise tech solutions' work on the digitised database and platforms in the two areas of cooperatives and RRBs in the coming days. Observing that RRBs are the middle layer of the banking system in the country, he said these banks are engaging in technology in larger way on account of the intervention of the Department of Financial Services (DFS) in the finance ministry. He added that now, consolidation of RRBs is also being agreed in-principle by the finance ministry and this could lead to a situation of 'One State One RRB’.

The CNX Nifty is currently trading at 24205.65, up by 11.15 points or 0.05% after trading in a range of 24145.65 and 24268.85. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 5.10%, Bharat Electronics up by 2.64%, NTPC up by 2.32%, Adani Ports up by 2.32% and Bajaj Finance up by 1.40%. On the flip side, ONGC down by 1.22%, Britannia down by 1.08%, Ultratech Cement down by 1.06%, Indusind Bank down by 1.02% and Cipla down by 1.01% were the top losers.

Asian markets were trading mostly in red; Straits Times fell 8.19 points or 0.22% to 3,704.20, KOSPI dropped 17.90 points or 0.72% to 2,502.46, Nikkei 225 slipped 368.42 points or 0.97% to 38,073.58 and Taiwan Weighted lost 327.41 points or 1.46% to 22,351.35. However, Hang Seng advanced 73.24 points or 0.38% to 19,232.44 and Shanghai Composite strengthened 9.29 points or 0.28% to 3,269.05.