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Markets trade tad higher in early deals; Bajaj Finance leads gainers
Jan-30-2025

Indian equity benchmarks made a cautious start on Thursday amid weak global cues. Trading activity remained somewhat subdued ahead of month expiry of Futures & Options (F&O). Soon, markets gained some traction and are trading tad higher in early deals on account buying in Realty, Power and Utilities counters. broader indices -- BSE Mid & Small cap indices are outperforming larger peers with gains of around a percent each. Traders took note of Moody's Analytics’ statement that India needs to change its fiscal and monetary policy to achieve a 6.4 per cent GDP growth in 2025 amid a weak rupee, declining foreign investment and volatile inflation.

On the global front, Asian stock markets are trading mixed, following the broadly negative cues from Wall Street overnight, after the US Fed left interest rates unchanged and noted inflation remains somewhat elevated. Traders react to a hawkish Fed policy statement. The mood remained cautious on concerns about the U.S. administration's tariff threats, and uncertainty on its trade and economic policies. Markets in China, Hong Kong, Singapore, South Korea, Malaysia and Taiwan are closed for the Lunar New Year holidays.

Back home, banking stocks are in focus as a report by S&P Global Market Intelligence said Indian banks are facing margin pressure as loan growth slows amid high interest rates. The report highlighted that the aggregate loan growth of six of India’s largest banks - both private and state-owned - is expected to decline to 12.3 per cent in the fiscal year ending March 31, 2025. In stock specific development, Bajaj Finance traded with traction on 16% rise in Q3 net profit at Rs 4,240 crore.

The BSE Sensex is currently trading at 76636.80, up by 103.84 points or 0.14% after trading in a range of 76426.83 and 76642.19. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.85%, while Small cap index was up by 1.25%.

The top gaining sectoral indices on the BSE were Realty up by 2.80%, Power up by 1.77%, Utilities up by 1.74%, Capital Goods up by 1.64% and Industrials up by 1.55%, while Consumer Durables down by 1.19%, Auto down by 0.33%, IT down by 0.06% and Bankex down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.80%, Power Grid up by 2.50%, Bajaj Finserv up by 2.20%, NTPC up by 1.48% and Adani Ports & SEZ up by 1.06%. On the flip side, Tata Motors down by 7.20%, ITC Hotels down by 2.86%, Infosys down by 0.62%, Titan Company down by 0.46% and ICICI Bank down by 0.43% were the top losers.

Meanwhile, amid a weak rupee, declining foreign investment and volatile inflation, Moody's Analytics has said India needs to change its fiscal and monetary policy to achieve a 6.4 per cent GDP growth in 2025. It expects the 2025-26 Union Budget to support domestic demand, particularly investment while aiming for a fiscal deficit of less than 4.5 per cent of GDP for the next fiscal. In 2023-24, the fiscal deficit was 5.6 per cent of GDP, which is estimated to come down to 4.9 per cent in the current fiscal.

It said ‘India is facing a bumpy road in 2025. A weakening rupee, declining foreign investment, and volatile inflation are the areas of greatest economic risk. Changes in fiscal and monetary policy, likely in the first half of the year, is needed if India is to achieve 6.4 per cent growth’. Moody's said that while India had one of the fastest-growing economies in Asia in 2024, GDP growth waned over the first three quarters. GDP growth likely picked up in the December quarter, resulting in an overall expansion of 6.8 per cent in 2024. That compares with 7.8 per cent in 2023.

Moody's Analytics said the rupee has weakened significantly since the start of the US Federal Reserve's easing cycle in September. Donald Trump's win in the US presidential race only put more pressure on the rupee as investors sold Indian assets, jumping on a greenback rally. Despite interventions by the Reserve Bank of India, the rupee lost more ground in the opening weeks of 2025, hitting a record low of Rs 86.6 to the US dollar in mid-January.

It also expects inflation to cool to 4.7 per cent in 2025 from 4.8 per cent in 2024. Food inflation should ease, but the tumbling rupee will likely add to input costs, driving up imported inflation. Currency weakness may also delay rate cuts. It added ‘India faces a challenging 2025; growth is slowing, the rupee looks set to tumble against the greenback, and headline inflation is far from the midpoint of the central bank's target range’.

The CNX Nifty is currently trading at 23222.30, up by 59.20 points or 0.26% after trading in a range of 23139.20 and 23230.15. There were 40 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 3.29%, Hindalco up by 2.39%, Power Grid up by 2.29%, Bajaj Finserv up by 2.18% and Bharat Electronics up by 1.89%. On the flip side, Tata Motors down by 7.18%, Infosys down by 0.61%, ICICI Bank down by 0.41%, Wipro down by 0.35% and SBI down by 0.29% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 134.1 points or 0.34% to 39,548.88, while Jakarta Composite plunged 117.06 points or 1.66% to 7,049.00.
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