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Benchmarks remain in red in morning deals
Oct-04-2024

Indian equity benchmarks remained in red in morning deals, led by losses in Realty, Power, Utilities and Oil & Gas stocks. Some concern came as exchange data showed Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, offloading shares worth Rs 15,243.27 crore on a net basis in the cash segment. FIIs have sold shares worth over Rs 30,000 crore since Monday. However, losses were limited as traders took some support as CareEdge Global IFSC, a subsidiary of CARE Ratings, has assigned a BBB+ rating to India, reflecting the country’s strong post-pandemic recovery and its focus on infrastructure investments. CareEdge Global’s assessment highlights India’s resilient economic performance, projecting GDP growth in the range of 6.5-7 per cent in the coming years. On the global front, Asian markets are trading mostly higher despite broadly negative cues from global markets overnight as traders remain cautious and keep an eye on developments in the Middle East, where an escalating conflict has contributed to a sharp increase in the price of crude oil.

The BSE Sensex is currently trading at 82389.52, down by 107.58 points or 0.13% after trading in a range of 82051.86 and 82649.16. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.17%, while Small cap index was down by 0.14%.

The top gaining sectoral indices on the BSE were IT up by 0.78%, TECK up by 0.44%, Healthcare up by 0.20%, Bankex up by 0.06% and Consumer Durables up by 0.05%, while Realty down by 2.00%, Power down by 0.86%, Utilities down by 0.81%, Oil & Gas down by 0.55% and Energy down by 0.41% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 1.37%, Tata Motors up by 1.08%, Infosys up by 1.05%, Tech Mahindra up by 0.95% and HCL Technologies up by 0.81%. On the flip side, Bajaj Finance down by 1.90%, Mahindra & Mahindra down by 1.35%, Asian Paints down by 1.32%, NTPC down by 1.31% and Bajaj Finserv down by 0.97% were the top losers.

Meanwhile, CareEdge Global IFSC, a subsidiary of CARE Ratings, has assigned a BBB+ rating to India, reflecting the country’s strong post-pandemic recovery and its focus on infrastructure investments. CareEdge Global’s assessment highlights India’s resilient economic performance, projecting GDP growth in the range of 6.5-7 per cent in the coming years.

According to it, India’s general government debt is expected to gradually decrease to 78 per cent of GDP by FY30 and further to 73.5 per cent by FY35, driven by healthy nominal GDP growth. However, it noted that India’s elevated government debt levels and weak debt affordability remain key credit constraints. Further, CareEdge Global IFSC has launched its Sovereign Ratings for 39 countries, marking its entry into the Global Scale Ratings space. According to it, with this launch, it has become the first Indian credit rating agency to assess global economies, providing long-term foreign currency (LTFC) ratings. 

Mehul Pandya, Managing Director & Group CEO of CareEdge, said, ‘This is a significant milestone for us in our journey towards becoming a global knowledge-based institution. As India’s economic influence grows, it is both timely and appropriate for an Indian company to enter this domain.’ Further, he said, ‘We are convinced that it is very important to have transparency in methodology of sovereign ratings, particularly in assessing the growth potential and investment needs of economies. This reflects in the ratings assigned by us.’

In addition to India, CareEdge Global has assigned ratings to 38 other countries. Top-rated countries include Germany, the Netherlands, Singapore, and Sweden, all rated AAA. Other highly rated nations include Australia, Canada, and the USA with AA+ ratings. Several other major economies like France, Japan, and the UK received AA- ratings, while China was assigned an A rating. The BBB+ rating category, where India stands, also includes countries like Botswana and the Philippines.

The CNX Nifty is currently trading at 25193.25, down by 56.85 points or 0.23% after trading in a range of 25094.55 and 25294.05. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were ONGC up by 1.54%, Maruti Suzuki up by 1.40%, SBI Life Insurance up by 1.26%, Wipro up by 1.16% and Tata Motors up by 1.02%. On the flip side, BPCL down by 2.36%, Shriram Finance down by 2.17%, Bajaj Finance down by 2.01%, Mahindra & Mahindra down by 1.72% and Hero MotoCorp down by 1.50% were the top losers.

Asian markets are trading mostly higher; Hang Seng advanced 386.67 points or 1.72% to 22,500.18, Straits Times rose 5.91 points or 0.17% to 3,583.34, KOSPI increased 8.21 points or 0.32% to 2,569.90 and Nikkei 225 surged 92.96 points or 0.24% to 38,645.02.

On the flip side, Jakarta Composite plunged 43.55 points or 0.58% to 7,500.28 and Taiwan Weighted lost 40.45 points or 0.18% to 22,349.94.
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