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Key gauges extend gains in morning deals
Jan-30-2025

Indian equity benchmarks extended gains in morning deals, led by gains in Realty, Capital Goods and PSU stocks. Traders took support with the finance ministry’s statement that the government launched a new credit guarantee scheme for the MSME sector covering loans up to Rs 100 crore in line with the FY25 Budget announcement. Some support also came as RBI's index that measures the adoption of online transactions showed digital payments across the country registered an 11.11 per cent year-on-year rise as on September 2024. RBI's Digital Payments Index (RBI-DPI) for September 2024 stands at 465.33 as against 445.5 for March 2024. 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 markets are trading mixed after the Federal Reserve held rates unchanged, with Chair Jerome Powell saying officials were not in a hurry to lower borrowing costs. 

The BSE Sensex is currently trading at 76855.27, up by 322.31 points or 0.42% after trading in a range of 76426.83 and 76898.63. There were 24 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.59%, while Small cap index was up by 1.09%.

The top gaining sectoral indices on the BSE were Realty up by 2.26%, Capital Goods up by 1.68%, PSU up by 1.55%, Oil & Gas up by 1.55% and Utilities up by 1.55%, while Consumer Durables down by 1.09% and Auto down by 0.17% were the few losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 2.94%, Bajaj Finance up by 2.67%, Indusind Bank up by 1.80%, Larsen & Toubro up by 1.73% and Bharti Airtel up by 1.51%. On the flip side, Tata Motors down by 6.44%, ITC Hotels down by 4.54%, Zomato down by 0.79%, Infosys down by 0.63% and Ultratech Cement down by 0.32% were the top losers.

Meanwhile, S&P Global Market Intelligence in its latest report has said that Indian banks are facing margin pressure as loan growth slows amid high interest rates. It 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. This is a sharp slowdown from the 22.5 per cent growth recorded in the previous fiscal year.

It said ‘Indian banks face margin pressures as loan growth slows amid high interest rates... Net interest margins at most lenders are expected to edge lower, the estimates show. Weaker NIMs are expected as deposit rates catch up and monetary easing looms.’ However, despite the slowdown in loan growth, it stated that the Indian banks continue to report higher net profits, although at a slower pace.

Moreover, it suggested that net interest margins (NIMs) of most banks are likely to decline in the coming months as deposit rates catch up and monetary easing comes into play. Many banks have adjusted their lending strategies, reducing consumer loans while focusing more on mobilising retail deposits to strengthen their balance sheets. The Reserve Bank of India (RBI) has maintained its benchmark interest rates at a high level, even as central banks in the US and Europe began easing their monetary policies in 2024.

The CNX Nifty is currently trading at 23290.90, up by 127.80 points or 0.55% after trading in a range of 23139.20 and 23311.15. There were 45 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Power Grid Corporation up by 2.94%, Hindalco up by 2.85%, Bajaj Finance up by 2.59%, ONGC up by 2.12% and Cipla up by 2.09%. On the flip side, Tata Motors down by 6.52%, Infosys down by 0.64%, Ultratech Cement down by 0.22%, ICICI Bank down by 0.19% and Sun Pharma down by 0.01% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 3.6 points or 0.01% to 39,418.38, while Jakarta Composite plunged 97.49 points or 1.36% to 7,068.57.
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