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Key gauges continue to trade higher in morning deals
Jan-31-2025

Indian equity benchmarks continued to trade higher in morning deals, led by gains in Capital Goods, Industrials and Consumer Durables stocks. Along with, expectations of favourable triggers from the upcoming Union Budget 2025 aided bullish sentiments. Traders took support with domestic rating agency Crisil’s report stating that the cumulative recovery rate of security receipts (SRs) for asset reconstruction companies (ARCs) is set to jump for the second straight year on the back of better show in infrastructure sector and other factors. It stated the cumulative recovery rate of security receipts is likely to jump by up to 15 percentage points per annum, touching 75-80 per cent by FY26. On the global front, Asian markets are trading mostly in green as traders reacted positively to upbeat domestic economic data from Japan, with retail sales exceeded expectations and unemployment rate dropping.

The BSE Sensex is currently trading at 77151.95, up by 392.14 points or 0.51% after trading in a range of 76833.87 and 77195.53. 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 0.94%, while Small cap index was up by 0.96%.

The top gaining sectoral indices on the BSE were Capital Goods up by 3.37%, Industrials up by 2.79%, Consumer Durables up by 2.25%, Realty up by 1.71% and Power up by 1.44%, while Telecom down by 0.39%, Metal down by 0.35% and Bankex down by 0.11% were the only losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 4.28%, Titan Company up by 3.48%, Mahindra & Mahindra up by 1.92%, Adani Ports & SEZ up by 1.73% and Nestle up by 1.70%. On the flip side, ITC Hotels down by 4.98%, Bharti Airtel down by 1.54%, NTPC down by 0.80%, ICICI Bank down by 0.71% and Asian Paints down by 0.23% were the top losers.

Meanwhile, domestic rating agency Crisil in its latest report has said that the cumulative recovery rate of security receipts (SRs) for asset reconstruction companies (ARCs) is set to jump for the second straight year on the back of better show in infrastructure sector and other factors. It stated the cumulative recovery rate of security receipts is likely to jump by up to 15 percentage points per annum, touching 75-80 per cent by FY26.

It attributed the improvement to healthy performance of stressed assets in key infrastructure sectors like real estate, thermal power and roads; higher share of retail and low vintage assets; and lower growth in new acquisitions in comparison to incremental recoveries. It said improving performance of stressed assets in these infrastructure sectors and the deterrence effect of the Insolvency and Bankruptcy Code (IBC) are impelling debt restructuring, which is emerging as a most-preferred resolution strategy and a win-win for both promoters of the stressed assets and ARCs.

The rating agency said it analysed Rs 38,000 crore worth of security receipts to arrive at the estimates. Next fiscal, out of an expected recovery of Rs 12,000 crore for Crisil-rated SRs, about half will be from stressed assets in the real estate, thermal power and roads sectors as against 34 per cent in FY25. Its senior director Mohit Makhija said three factors responsible for the rising ARC cash flows have converged in the past 2-3 fiscal years. He elaborated that stressed residential real estate projects have turned viable as property prices rose and inventories declined in the top six cities, while thermal power plants have seen demand growing amid adequate coal availability and timely payment by discoms.

The CNX Nifty is currently trading at 23390.20, up by 140.70 points or 0.61% after trading in a range of 23277.40 and 23403.75. There were 37 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Tata Consumer Products up by 4.42%, Trent up by 4.37%, Larsen & Toubro up by 4.20%, Bharat Electronics up by 4.09% and Titan Company up by 3.49%. On the flip side, Bharti Airtel down by 1.62%, Coal India down by 0.79%, ICICI Bank down by 0.73%, NTPC down by 0.51% and Cipla down by 0.25% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 68.44 points or 0.17% to 39,582.41, Straits Times rose 58.72 points or 1.54% to 3,859.79 and Jakarta Composite gained 84.64 points or 1.18% to 7,158.12.

On the other hand, KOSPI dropped 31.32 points or 1.23% to 2,505.48.
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