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Bourses trade near day’s low levels in late afternoon session
Jan-03-2025

Indian markets traded near day’s low levels in late afternoon session following weak cues from European markets. Traders took note of report that 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. Investors overlooked private report that Maharashtra has attracted Rs 1.13 lakh crore in foreign direct investment (FDI) in the first six months of FY 2024-25. This figure is nearly equivalent to the total FDI the state has received annually over the last four years.

On the global front, Asian markets were trading mixed despite hopes that China will follow through on its pledges to stimulate growth in the new year. European markets were trading lower after major U.S. benchmark indexes extended a selloff for a fifth day overnight amid choppy trading.

The BSE Sensex is currently trading at 79319.63, down by 624.08 points or 0.78% after trading in a range of 79266.64 and 80072.99. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.31%, while Small cap index was up by 0.14%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.68%, Energy up by 1.35%, PSU up by 0.63%, Metal up by 0.49% and Telecom was up by 0.30%, while IT down by 1.27%, TECK down by 1.04%, Bankex down by 0.94%, Capital Goods down by 0.85% and Healthcare was down by 0.55% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 3.41%, Hindustan Unilever up by 1.56%, Nestle up by 1.41%, Titan Company up by 1.20% and Reliance Industries up by 0.92%. On the flip side, Zomato down by 3.48%, Tech Mahindra down by 2.37%, HDFC Bank down by 2.07%, ICICI Bank down by 1.96% and Adani Ports down by 1.93% were the top losers.

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained a neutral outlook on the oil and gas sector for FY26. The rating agency noted that the credit profile of downstream companies is expected to remain stable during the year, driven by a healthy demand for petroleum products and healthy marketing margins that would offset compressed gross refining margins (GRMs), yielding healthy overall EBITDA. 

According to the report titled ‘FY26 Oil and Gas Outlook: Weak Global Demand Driving Down GRMs; CGD Segment Transition Underway’, credit profile may see an addition of debt on account of under construction refinery expansion projects for all the major oil marketing companies (OMCs). The credit profile of upstream oil companies shall remain dependent on crude oil prices. 

Further, it said that EBITDA generation for upstream companies may fall with a moderation in oil prices and a reduction in production from legacy fields. However, the impact of low crude oil price is expected to be offset by the removal of special excise on the production of crude and an increase in production expected from new discoveries.

The CNX Nifty is currently trading at 24036.80, down by 151.85 points or 0.63% after trading in a range of 24000.25 and 24196.45. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were ONGC up by 5.25%, Tata Motors up by 3.38%, Hindustan Unilever up by 1.72%, SBI Life up by 1.48% and Nestle up by 1.41%. On the flip side, Wipro down by 2.90%, Tech Mahindra down by 2.37%, HDFC Bank down by 2.16%, ICICI Bank down by 1.93% and Adani Ports down by 1.89% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 136.95 points or 0.69% to 19,760.27, Taiwan Weighted added 76.24 points or 0.33% to 22,908.30, KOSPI increased 42.98 points or 1.76% to 2,441.92 and Straits Times was up by 0.05 points or 0% to 3,800.86. On the flip side, Jakarta Composite plunged 15.41 points or 0.22% to 7,147.80 and Shanghai Composite was down by 51.13 points or 1.59% to 3,211.43.

European markets were trading lower; UK’s FTSE 100 decreased 7.29 points or 0.09% to 8,252.80, France’s CAC fell 66.88 points or 0.91% to 7,326.88 and Germany’s DAX was down by 92.94 points or 0.47% to 19,931.72.
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