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Domestic indices erase all losses in late morning deals
Feb-07-2025

Domestic equity indices erased all of their losses and were trading higher with gains of around quarter a percent in late morning deals on account of buying by funds and retail investors. Sentiments got boost after the Reserve Bank of India (RBI) has cut interest rate for the first time in nearly five years. Its Monetary Policy Committee (MPC) has reduced the repo rate by 25 basis points (bps) to 6.25 per cent, after having kept it unchanged at 6.50 per cent for eleven straight meetings, and not having lowered it since May 2020.  Some support also came in as Finance Secretary Tuhin Kanta Pandey has said that the Union Budget 2024-25 is absolutely non-inflationary. Pandey emphasized the government’s commitment to maintaining fiscal discipline while fostering economic growth. On the BSE sectoral front, traders were seen pilling up positions in Telecom, Metal, Realty, Consumer Durables and Basic Materials, while selling was witnessed in FMCG, Oil & Gas, Energy, IT and Capital Goods. 

On the global front, Asian markets were trading mixed after the International Monetary Fund said the Bank of Japan could hike interest rates again in 2025, which expects borrowing costs reaching a neutral level by the end of 2027. Back home, shares of rate sensitive sectors like financials, including banks, non banking financial companies (NBFCs) and realty were in focus after the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decided to cut repo rate by 25 basis points.

The BSE Sensex is currently trading at 78247.54, up by 189.38 points or 0.24% after trading in a range of 77730.37 and 78356.98. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.66%, while Small cap index down by 0.08%.

The top gaining sectoral indices on the BSE were Telecom up by 3.34%, Metal up by 2.29%, Realty up by 1.68%, Consumer Durables up by 1.54% and Basic Materials up by 1.06%, while FMCG down by 0.90%, Oil & Gas down by 0.60%, Energy down by 0.31%, IT down by 0.18% and Capital Goods down by 0.11% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 5.21%, Tata Steel up by 3.51%, Indusind Bank up by 1.73%, NTPC up by 1.71% and Mahindra & Mahindra up by 1.70%. On the flip side, ITC down by 1.61%, TCS down by 0.88%, Nestle down by 0.74%, SBI down by 0.71% and Hindustan Unilever down by 0.57% were the top losers.

Meanwhile, Ministry of Finance in its latest data report has showed that public sector banks (PSBs) recorded net profit growth of 31.3% year on year (y-o-y) to achieve highest ever aggregate net profit of Rs 1,29,426 crore and aggregate operating profit of Rs 2,20,243 crore, in first nine months of the financial year 2024-25 (April-December).

As per the report, PSBs also witnessed improved asset quality with significantly low Net NPA ratio at 0.59% (Aggregate net NPA outstanding of Rs 61,252 crore). They also saw aggregate business growth of 11.0% y-o-y, with improved aggregate deposit growth at 9.8% y-o-y. Besides, total aggregate business of PSBs reached Rs 242.27 lakh crore.

The report also noted that PSBs achieved robust credit growth of 12.4%, led by retail credit growth of 16.6%, agriculture credit growth of 12.9% and MSME credit growth of 12.5%. It said PSBs are adequately capitalized and well poised to meet credit demands of all sectors of the economy, with special thrust on Agriculture, MSME and Infrastructure Sector.

The CNX Nifty is currently trading at 23681.25, up by 77.90 points or 0.33% after trading in a range of 23493.60 and 23688.05. There were 31 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 5.14%, Tata Steel up by 3.30%, Trent up by 2.56%, JSW Steel up by 2.51% and Adani Enterprises up by 2.41%. On the flip side, ONGC down by 1.89%, ITC down by 1.52%, TCS down by 0.89%, SBI down by 0.70% and Nestle down by 0.52% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 199.49 points or 0.95% to 21,091.11, Shanghai Composite strengthened 42.4 points or 1.28% to 3,313.06, Straits Times rose 21.61 points or 0.56% to 3,852.03 and Taiwan Weighted added 111.84 points or 0.48% to 23,428.44. However, KOSPI dropped 13.51 points or 0.54% to 2,523.24, Nikkei 225 slipped 193.43 points or 0.5% to 38,873.10 and Jakarta Composite plunged 151.12 points or 2.25% to 6,724.42.
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