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Domestic indices remain in green in late morning deals
Jan-30-2025

Domestic equity indices remained in green in late morning deals on account of buying by funds and retail investors. Meanwhile, broader indices were also trading in green with BSE Mid cap index and Small cap index gaining in the range of 0.35-0.75%. Buying in Power Grid, Bajaj Finance, Adani Ports, Mahindra & Mahindra and Tech Mahindra companies’ stocks helped the markets to trader higher. Some support came in as crude oil prices fell overnight after data showed crude inventories in the U.S. rose in the week ended January 24. Data from the Energy Information Administration showed crude oil inventories jumped by 3.5 million barrels last week after dipping by 1.0 million barrels in the previous week. Traders took note of report that in a bid to match labour market demand and supply and enhance employment outcomes, the ministry of labour and employment launched the Occupational Shortage Index (OSI).

On the global front, Asian markets were trading mixed following negative cues from the US markets overnight. Back home, on the BSE sectoral front, traders were seen pilling up positions in Realty, Oil & Gas, Energy, Capital Goods and PSU, while selling was witnessed in Consumer Durables, IT, Auto and TECK. 

The BSE Sensex is currently trading at 76776.94, up by 243.98 points or 0.32% after trading in a range of 76426.83 and 76898.63. There were 23 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.37%, while Small cap index up by 0.73%.

The top gaining sectoral indices on the BSE were Realty up by 2.00%, Oil & Gas up by 1.82%, Energy up by 1.60%, Capital Goods up by 1.55% and PSU up by 1.52%, while Consumer Durables down by 1.31%, IT down by 0.35%, Auto down by 0.11% and TECK down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 2.92%, Bajaj Finance up by 2.80%, Adani Ports up by 1.44%, Mahindra & Mahindra up by 1.41% and Tech Mahindra up by 1.12%. On the flip side, Tata Motors down by 6.44%, ITC Hotels down by 4.98%, Zomato down by 1.30%, Infosys down by 1.14% and Ultratech Cement down by 0.57% were the top losers.

Meanwhile, the finance ministry has said 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. The introduction of Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME) aims at providing 60 per cent guarantee coverage by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs) for credit facility up to Rs 100 crore sanctioned to eligible MSMEs for purchase of equipment/machinery, 

For availing the scheme, it said the MSMEs should fulfil certain conditions which include that the borrower should be an MSME with valid Udyam Registration Number, loan amount guaranteed shall not exceed Rs 100 crore, project cost could be of higher amounts also and minimum cost of equipment /machinery is 75 per cent of project cost. Annual Guarantee Fee on loan under the scheme shall be nil during the year of sanction. It shall be 1.5 per cent p.a. of loan outstanding as on March 31 of previous year for the next three years, and thereafter, annual guarantee fee shall be 1 per cent p.a. of loan outstanding as on March 31 of previous year. The scheme will be applicable to all loans sanctioned under MCGS-MSME during the period of four years from the date of issue of operational guidelines of the scheme or till cumulative guarantee of Rs 7 lakh crore are issued, whichever is earlier. Manufacturing sector currently comprises 17 per cent of the nation's GDP and over 27.3 million workers.

The ministry said with availability of credit to expand the installed capacity of manufacturing units, it can be expected that the manufacturing will grow at a faster pace. Also, it said the need for a credit guarantee scheme for the manufacturing units, particularly for the enterprises in the medium category, has been raised by industry associations from time to time. So, it said to give a boost to manufacturing by facilitating the availability of credit for purchase of plant and machinery / equipment, 'Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is being introduced. The scheme will facilitate collateral-free loans by banks and financial institutions to MSMEs who are in need of debt capital for their expansion and growth.

The CNX Nifty is currently trading at 23265.95, up by 102.85 points or 0.44% after trading in a range of 23139.20 and 23311.15. There were 40 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 3.09%, Bajaj Finance up by 3.06%, ONGC up by 2.89%, Cipla up by 2.56% and Bharat Electronics up by 2.47%. On the flip side, Tata Motors down by 6.31%, Infosys down by 1.09%, Ultratech Cement down by 0.48%, Shriram Finance down by 0.46% and ICICI Bank down by 0.37% were the top losers.

 Asian markets were trading mixed; Nikkei 225 rose 77.54 points or 0.19% to 39,491.62, while Jakarta Composite dropped 97.49 points or 1.38% to 7,068.57.
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