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Firm trade persists on Dalal Street
Dec-27-2024

Key barometer gauges continued their firm trade in morning session, on the back of mostly positive trade in Asian equities coupled with sustained buying by domestic institutional investors. Sentiments remained firm with the commerce ministry in its 2024 year-end review stated that the Export Credit Guarantee Corporation of India (ECGC) is aiming to reduce the export credit gap through the Whole Turnover Export Credit Insurance for Banks (WT-ECIB) scheme, which is expected to benefit about 1,000 new small exporters, in addition to the existing 8,000-odd by facilitating the availability of adequate and affordable export finance from banks for working capital. Traders overlooked the Global Trade Research Initiative (GTRI) stated that the depreciation of Indian rupee against the US dollar is expected to push the country's import bill by about $15 billion. Compared to December last year, the Indian Rupee (INR) has depreciated 2.34 per cent against the US dollar, moving from Rs 83.25 to Rs 85.20. On the global front, Asian markets are trading mostly in green as traders continue to be optimistic about more interest rate cuts by the U.S. Fed next year. 

The BSE Sensex is currently trading at 78939.04, up by 466.56 points or 0.59% after trading in a range of 78598.55 and 79043.15. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.22%, while Small cap index was up by 0.10%.

The top gaining sectoral indices on the BSE were Auto up by 2.05%, Consumer Discretionary up by 0.91%, Bankex up by 0.63%, Telecom up by 0.60% and Healthcare up by 0.43%, while Realty down by 0.26%, Capital Goods down by 0.04% and Oil & Gas down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 3.36%, Tata Motors up by 3.04%, Mahindra & Mahindra up by 2.35%, Bajaj Finance up by 2.13% and Maruti Suzuki up by 1.92%. On the flip side, Power Grid Corporation down by 0.43%, Zomato down by 0.29%, TCS down by 0.27%, HCL Technologies down by 0.23% and Larsen & Toubro down by 0.09% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its report on Trend and Progress of Banking in India 2023-24 has said that the profitability of banks has maintained an upward momentum on the sixth consecutive year in 2023-24. It said that the profitability has continued even in the first half (H1) of financial year 2024-25, with the return of assets (RoA) at 1.4 per cent and return on equity (RoE) at 14.6 per cent.

It highlighted that robust credit growth led the expansion of the consolidated balance sheet of scheduled commercial banks (SCBs) during 2023-24. By definition, consolidated balance sheet is a financial statemet of the bank which shows its liabilities, assets, equity, income, expenses and cash flows.

Further, it highlighted that the capital to risk weighted assets ratio (CRAR) of SCBs was 16.8 per cent at end-September 2024, with all bank groups meeting the regulatory minimum requirement and the common equity tier 1 (CET1) ratio requirement. The capital to risk weighted assets ratio (CRAR) is a indicator of financial stability of a bank. Besides, the asset quality of Banks has also improved, as per report, with the gross non-performing assets (GNPA) ratio falling to its lowest in 13 years at 2.7 per cent at March-end 2024 and 2.5 per cent at September-end 2024.

The combined balance sheet of urban co-operative banks (UCBs) expanded in 2023-24, with asset quality improving for the third consecutive year while capital buffers and profitability were strengthened. It mentioned while unsecured lending shrank and asset quality further improved, the non-banking financial companies (NBFC) sector saw double-digit credit growth. Moreover, it highlighted by the end of September 2024, the Gross Non-Performing Assets (GNPA) ratio had fallen to 3.4 per cent, and robust capital buffers had maintained the CRAR well above the required level.

The CNX Nifty is currently trading at 23910.35, up by 160.15 points or 0.67% after trading in a range of 23800.60 and 23938.85. There were 42 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 3.44%, Bajaj Auto up by 3.06%, Tata Motors up by 2.96%, Eicher Motors up by 2.86% and Mahindra & Mahindra up by 2.40%. On the flip side, Power Grid Corporation down by 0.37%, TCS down by 0.33%, HCL Technologies down by 0.20%, Larsen & Toubro down by 0.18% and Bharat Electronics down by 0.12% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 671.12 points or 1.7% to 40,239.18, Taiwan Weighted added 31.65 points or 0.14% to 23,278.59, Hang Seng advanced 23.51 points or 0.12% to 20,121.80, Straits Times rose 9.71 points or 0.26% to 3,771.16 and Shanghai Composite strengthened 9.81 points or 0.29% to 3,407.89.

On the flip side, KOSPI dropped 25.40 points or 1.05% to 2,404.27 and Jakarta Composite plunged 8.46 points or 0.12% to 7,057.29. 
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