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Benchmarks continue to trade lower in morning deals
Jan-03-2025

Indian equity benchmarks continued to trade lower in morning deals, dragged by IT, TECK and Banking stocks ahead of the start of earnings season next week. Traders remained cautious with credit rating agency ICRA’s report stating that banks credit growth may ease to 9.7-10.3 per cent in FY26, weighed down by the persisting high credit-to-deposit (CD) ratio and implementation of the proposed changes in the liquidity coverage ratio (LCR) framework. ICRA has revised its credit growth estimate downwards to 10.5-11 per cent for FY25 from its earlier estimate of 11.6-12.5 per cent. Some concern also came with Chairman of the CII National Committee on EXIM, Sanjay Budhia’s statement that Indian exporters are grappling with significant liquidity challenges due to high interest rates and a decline in export finance, which are undermining their competitiveness. Sector-wise, textile companies’ stocks remained in watch as the government said India's textiles and apparel exports, including handicrafts, grew 7 per cent during the April-October period to $21.35 billion. The outbound shipments from the sector stood at $20 billion in the same period of the previous financial year, FY 2023-24. On the global front, Asian markets are trading mostly higher boosted by strong gains in materials and energy stocks on firm metal and crude oil prices. 

The BSE Sensex is currently trading at 79422.27, down by 521.44 points or 0.65% after trading in a range of 79366.88 and 80072.99. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.10%, while Small cap index was up by 0.51%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.83%, Oil & Gas up by 0.64%, PSU up by 0.48%, Consumer Discretionary up by 0.39% and Energy up by 0.38%, while IT down by 0.96%, TECK down by 0.86%, Bankex down by 0.60%, Realty down by 0.41% and FMCG down by 0.32% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 1.37%, Tata Motors up by 1.24%, Maruti Suzuki up by 1.19%, Nestle up by 0.55% and NTPC up by 0.52%. On the flip side, Tech Mahindra down by 1.65%, HDFC Bank down by 1.57%, TCS down by 1.42%, ICICI Bank down by 1.37% and ITC down by 1.11% were the top losers.

Meanwhile, the Textiles Ministry has said that India's textiles and apparel exports, including handicrafts, grew 7 per cent during the April-October period of current financial year to $21.35 billion. The outbound shipments from the sector stood at $20 billion in the same period of the previous financial year, FY 2023-24. It stated the Ready Made Garments (RMG) category with exports of $8,733 million has the largest share (41 per cent) in the total exports ($21,358 million) during the period of April-October of FY 2024-25, followed by Cotton Textiles (33 per cent, $7,082 million), Man-Made Textiles (15 per cent, $3,105 million).

Moreover, it said growth of exports was observed in all principal commodities during April-October of FY 2024-25, as compared to corresponding period of FY 2023-24, except wool and handloom, which declined by 19 per cent and 6 per cent, respectively. Meanwhile, the overall import of textiles and apparel including handicrafts declined 1 per cent during the April-October period of FY 2024-25 ($5,425 million), compared to the same period of FY 2023-24 ($5,464 million).

Further, it said the man-made textiles category with import of $1,859 million has the largest share (34 per cent) in the total imports ($5,425 million) during the period of April-October of FY 2024-25, as there is a demand-supply gap in this sector. During FY 2023-24, the import of textiles and apparel products by India stood at $8.94 billion, down by nearly 15 per cent in comparison to $10.48 billion in FY 2022-23. India was the sixth largest exporter of textiles and apparel in the world in 2023. The share of textile and apparel (T&A) including handicrafts in India's total exports stood at 8.21 per cent in FY 2023-24.

The CNX Nifty is currently trading at 24047.00, down by 141.65 points or 0.59% after trading in a range of 24032.15 and 24196.45. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.07%, Titan Company up by 1.30%, Tata Motors up by 1.14%, Trent up by 0.92% and JSW Steel up by 0.89%. On the flip side, Hero MotoCorp down by 2.30%, Wipro down by 1.93%, Tech Mahindra down by 1.76%, HDFC Bank down by 1.63% and ICICI Bank down by 1.38% were the top losers.

Asian markets are trading mostly higher; Taiwan Weighted added 124.85 points or 0.55% to 22,956.91, Hang Seng advanced 170.71 points or 0.86% to 19,794.03, KOSPI increased 41.96 points or 1.75% to 2,440.90 and Jakarta Composite gained 4.07 points or 0.06% to 7,167.28.

On the flip side, Shanghai Composite weakened 15.02 points or 0.46% to 3,247.54 and Straits Times fell 4.66 points or 0.12% to 3,796.15.
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