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Markets continue to trade flat in morning deals
Feb-05-2025

Indian equity benchmarks continued to trade flat in morning deals, as investors remained cautious ahead of the Reserve Bank of India's monetary policy meeting this week. Some concern also came as business survey showed growth in India's dominant services sector was the slowest in over two years in January amid cooling demand but remained historically strong and led to a substantial rate of hiring. The HSBC final India Services Purchasing Managers' Index, compiled by S&P Global, fell to 56.5 in January from 59.3 in December, a tad lower than a preliminary estimate of 56.8 but comfortably ahead of the 50-mark separating contraction from growth. However, traders took some support with S&P Global Ratings’ statement that the Budget for 2025-26 will boost India's growth over the next few years via domestic demand through income tax cuts and the country will achieve the targeted 4.4 per cent fiscal deficit despite hiking I-T rebate. 

On the global front, Asian markets are trading mostly in red after Chinese shares opened lower as caution prevailed among investors with trade tensions rising between the world’s two largest economies. Back home, on the sectoral front, stocks related to insurance sector remained in watch Moody's Ratings said increasing foreign investment limit in the insurance sector to 100 per cent from 74 per cent is likely to attract more global players in the growing Indian insurance market.

The BSE Sensex is currently trading at 78478.39, down by 105.42 points or 0.13% after trading in a range of 78406.55 and 78735.41. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.07%, while Small cap index was up by 1.35%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.69%, Metal up by 1.57%, Utilities up by 1.53%, Power up by 1.49% and PSU up by 1.41%, while FMCG down by 0.80%, Auto down by 0.28%, Realty down by 0.10% and Consumer Durables down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.28%, Tata Motors up by 1.28%, Zomato up by 1.22%, Power Grid Corporation up by 1.10% and Tata Steel up by 1.09%. On the flip side, Asian Paints down by 3.86%, Nestle down by 2.65%, Titan Company down by 2.44%, Sun Pharma down by 1.45% and Bajaj Finserv down by 1.20% were the top losers.

Meanwhile, in a bid to provide easy credit for MSME exporters, Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi has said that the government is formulating schemes which will promote alternate financing instrument through strengthening factoring services and offer assistance to deal with non-tariff measures imposed by other countries.  

These schemes are being formulated under the export promotion mission, announced in the Union Budget for 2025-26. In Union Budget for 2025-26, the government has planned an Export Promotion Mission with an outlay of Rs 2250 crore, under which these schemes are being formulated to promote India’s exports. The schemes are expected to be rolled out in about 4-5 months.

The Export factoring services are widely used financing instrument globally. However, due to high factoring costs involving higher rates of interest, higher risk premiums and lack of parity with subvention schemes these services have low adoption in India. Sarangi said the cross-border factoring should attain a certain scale to reach about 3 per cent of merchandise exports (in line with the global average).

The CNX Nifty is currently trading at 23774.35, up by 35.10 points or 0.15% after trading in a range of 23726.50 and 23807.30. There were 32 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were BPCL up by 2.95%, Trent up by 2.43%, Hindalco up by 2.32%, Bharat Electronics up by 2.23% and Shriram Finance up by 2.19%. On the flip side, Asian Paints down by 3.64%, Nestle down by 2.29%, Titan Company down by 2.20%, Tata Consumer Product down by 1.39% and Sun Pharma down by 1.12% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 142.93 points or 0.69% to 20,647.03, Straits Times fell 5.46 points or 0.14% to 3,817.55, Jakarta Composite plunged 34.07 points or 0.48% to 7,039.39 and Shanghai Composite weakened 11.75 points or 0.36% to 3,238.85.

On the flip side, Nikkei 225 surged 52.37 points or 0.13% to 38,850.74, Taiwan Weighted added 412.75 points or 1.81% to 23,206.71 and KOSPI increased 26.52 points or 1.07% to 2,508.21.
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