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Volatility remains over Dalal Street
Mar-07-2025

Volatility continued over Dalal Street in late morning session, amid ongoing concerns over U.S. tariffs, however Sensex and Nifty managing to keep their heads above water, supported by buying at Industrials and Energy counters. Some relief came after Anna Bjerde, managing director of operations at the World Bank said that India could emerge as a developed country by 2047, provided it sustains high economic growth. Bjerde said she sees an economically uncertain world for some more time. Besides, the government has launched the New Credit Assessment Model based on the scoring of digital footprints of MSMEs. This credit assessment model will leverage the digitally fetched and verifiable data available in the ecosystem and devise automated journeys for MSME Loan appraisal using objective decisioning for all loan applications and model-based limit assessment for both Existing to Bank (ETB) as well as New to Bank (NTB) MSME borrowers.

Asian markets were trading mixed, as China's exports growth eased more than expected at the start of the year and imports logged an unexpected sharp decline amid mounting trade tensions. Exports grew at a slower pace of 2.3 percent annually in the January to February period, following a 10.7 percent rise in December. Exports were expected to climb 5.0 percent. 

The BSE Sensex is currently trading at 74406.47, up by 66.38 points or 0.09% after trading in a range of 74038.03 and 74586.43. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged by 0.42%, while Small cap index was up by 1.37%.

The top gaining sectoral indices on the BSE were Industrials up by 1.48%, Energy up by 1.24%, Capital Goods up by 1.16%, Telecom up by 0.83% and Basic Materials up by 0.82%, while IT down by 0.88%, TECK down by 0.57%, Utilities down by 0.33%, Consumer Durables down by 0.21% and FMCG down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 3.58%, Adani Ports & SEZ up by 1.45%, Nestle up by 1.23%, Tata Motors up by 1.15% and Ultratech Cement up by 0.85%. On the flip side, Indusind Bank down by 2.63%, Zomato down by 1.91%, Infosys down by 1.83%, NTPC down by 1.33% and HCL Tech. down by 1.00% were the top losers.

Meanwhile, in a major boost to credit accessibility for Micro, Small, and Medium Enterprises (MSMEs), the government has launched the New Credit Assessment Model based on the scoring of digital footprints of MSMEs. This credit assessment model will leverage the digitally fetched and verifiable data available in the ecosystem and devise automated journeys for MSME Loan appraisal using objective decisioning for all loan applications and model-based limit assessment for both Existing to Bank (ETB) as well as New to Bank (NTB) MSME borrowers.

The digital footprints used by the model may include Name and Pan authentication using NSDL, Mobile and email verification using OTP, API fetch of GST data through service providers, Bank Statement Analysis using account aggregator, ITR upload and verification, API enabled commercial and consumer bureau fetch and due diligence using CICs, fraud checks, Hunter checks through APIs, among others.

This model will provide various benefits to MSMEs including submission of application from anywhere through online mode, reduced paperwork and Branch visit, instant in-principle sanction through digital mode, seamless processing of credit proposals, end to end straight through process (STP), reduced turnaround time (TAT), Credit decision based on objective data/ Transactional behaviour and credit history, no Physical collateral securities for loans covered under CGTMSE, among others.

The credit assessment model for MSMEs based on digital footprints is expected to be a significant improvement over the traditional assessment of credit eligibility based only on asset or turnover criteria. That will also cover MSMEs without a formal accounting system.

The CNX Nifty is currently trading at 22548.80, up by 4.10 points or 0.02% after trading in a range of 22464.75 and 22633.80. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 3.32%, Bajaj Auto up by 1.84%, Bharat Electronics up by 1.58%, Adani Ports & SEZ up by 1.17% and Coal India up by 1.08%. On the flip side, Indusind Bank down by 2.85%, Infosys down by 2.10%, NTPC down by 1.83%, Shriram Finance down by 1.61% and HCL Tech. down by 1.27% were the top losers.

Asian markets were trading mixed; Shanghai Composite weakened 3.3 points or 0.1% to 3,377.80, KOSPI dropped 11.49 points or 0.45% to 2,564.67, Nikkei 225 slipped 799.27 points or 2.12% to 36,905.66 and Taiwan Weighted lost 139.36 points or 0.62% to 22,576.07, while Hang Seng advanced 18.63 points or 0.08% to 24,388.34, Jakarta Composite gained 41 points or 0.62% to 6,658.85 and Straits Times rose 1.26 points or 0.03% to 3,918.3.
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