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Domestic indices trim some losses in late morning deals
Jan-03-2025

Domestic equity indices trimmed some of their losses in late morning deals on account of buying in Tata Motors, Titan, Indusind, Maruti Suzuki and NTPC. Some support came in as foreign institutional investors net bought Indian equities worth Rs 1,506.75 crore on Thursday. Some optimism also came as Commerce and Industry Minister Piyush Goyal said the implementation process of free trade agreement (FTA) between India and the four-nation European bloc EFTA is progressing fast and is expected to come into force before the end of this year. However, markets continued to trade lower owing to rising cure oil prices. On the BSE sectoral front, traders were seen pilling up positions in Oil & Gas, Consumer Durables, Energy, PSU and Metal, while selling was witnessed in IT, TECK, Bankex, Realty and Healthcare. 

On the global front, Asian markets were trading mostly in green despite weak cues from the US markets overnight. However, China markets fell with bond yields hitting record lows after the People’s Bank of China is reportedly planning interest rate cuts at an appropriate time. The country’s 7-day reverse repo rate is currently set at 1.5%. In the stocks specific development, Western Carriers (India) climbed after the company has secured a material handling order worth Rs 139 crore from Vedanta.

The BSE Sensex is currently trading at 79694.71, down by 249.00 points or 0.31% after trading in a range of 79274.77 and 80072.99. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.07%, while Small cap index up by 0.65%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.09%, Consumer Durables up by 1.02%, Energy up by 0.88%, PSU up by 0.85% and Metal up by 0.83%, while IT down by 1.06%, TECK down by 0.88%, Bankex down by 0.42%, Realty down by 0.36% and Healthcare down by 0.28% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 3.53%, Titan up by 2.38%, Indusind Bank up by 1.65%, Maruti Suzuki up by 1.65% and NTPC up by 1.27%. On the flip side, Tech Mahindra down by 1.74%, HDFC Bank down by 1.55%, ICICI Bank down by 1.46%, TCS down by 1.25% and Infosys down by 1.17% were the top losers.

Meanwhile, credit rating agency ICRA in its latest report has said 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.

In its recent report, ICRA highlighted that with the banks focusing on reducing their CD ratio and reducing their exposures to unsecured retail and non-banking financial companies (NBFCs), the overall credit growth has moderated in the past few months. Consequently, credit and deposit growth has almost aligned with each other and ICRA expects the trend to continue. It said the persisting high interest rates and the slowdown in credit growth, especially towards high-yielding advances will impact the margins of the banking sector.

The report said the capital ratios of several banks remain comfortable, and no major growth-related capital requirement is expected for FY26. Nevertheless, the implementation of the expected credit loss (ECL) framework and increased provisioning for project finance in the medium term is likely to be monitorable. On the asset quality front, it said fresh NPA generation rate is expected to see a relative increase in FY25 and FY26 but the credit costs would see only a mild rise because of lower legacy net NPAs.

The CNX Nifty is currently trading at 24113.20, down by 75.45 points or 0.31% after trading in a range of 24000.25 and 24196.45. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 3.52%, ONGC up by 2.86%, Titan up by 2.43%, Indusind Bank up by 1.72% and Maruti Suzuki up by 1.54%. On the flip side, Hero MotoCorp down by 2.12%, Wipro down by 2.11%, Tech Mahindra down by 1.68%, HDFC Bank down by 1.49% and ICICI Bank down by 1.33% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 80.51 points or 0.41% to 19,703.83, Jakarta Composite gained 4.07 points or 0.06% to 7,167.28, KOSPI increased 42.17 points or 1.73% to 2,441.11 and Taiwan Weighted added 117.07 points or 0.51% to 22,949.13. However, Shanghai Composite weakened 23.65 points or 0.73% to 3,238.91 and Straits Times fell 5.11 points or 0.13% to 3,795.70. 
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