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Key gauges remain in green ahead of Union Budget
Feb-01-2025

Indian equity benchmarks continued to trade in green in morning deals, ahead of presentation of the much-anticipated Union Budget 2025-26 in Parliament. This year's Union Budget is expected to maintain the government's focus on promoting economic growth while ensuring equity. Traders took support with the Finance Ministry stating that the Ground Level Agriculture Credit (GLC) has crossed Rs 19 lakh crore in nine months of the current fiscal as against the target of Rs 27.50 lakh crore for the entire FY25. It said in order to boost the credit to the rural sector with the help of effective and hassle-free agriculture credit, the government has been fixing annual targets for GLC. Traders took a note of data released by Controller General of Accounts (CGA) showed the Centre's fiscal deficit touched 56.7 per cent of the annual target at the end of December 2024. In actual terms, the fiscal deficit -- the gap between expenditure and revenue -- was Rs 9,14,089 crore during the April-December 2024-25 period. The deficit was 55 per cent of Budget Estimates (BE) of 2023-24 in the year-ago period. 

On the sectoral front, stocks related to steel sector remained in watch as Steel Secretary Sandeep Poundrik said India needs to add 100 million tonnes (MT) of steel making capacity by 2030 on priority to avoid becoming dependent on imports. He also pointed out that slumped steel demand and over capacities globally have affected domestic industry. 

The BSE Sensex is currently trading at 77726.90, up by 226.33 points or 0.29% after trading in a range of 77434.85 and 77832.05. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.65%, while Small cap index up by 0.81%.

The gaining sectoral indices on the BSE were Capital Goods up by 1.71%, Power up by 1.49%, Utilities up by 1.45%, Industrials up by 1.44%, PSU up by 0.79% while, Oil & Gas down by 0.15%, Energy down by 0.06% were the losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.62%, Ultratech Cement up by 1.74%, Larsen & Toubro up by 1.47%, Mahindra & Mahindra up by 1.28% and Sun Pharma up by 1.25%. On the flip side, Nestle down by 0.82%, Titan down by 0.82%, HCL Tech down by 0.67%, ITC down by 0.54% and Tech Mahindra down by 0.15% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its latest data has said that bank credit growth to personal loans segment moderated to 14.9 per cent (y-o-y) as on the fortnight ended December 27, 2024 as compared with 17.6 per cent a year ago, largely due to decline in growth in 'other personal loans', 'vehicle loans' and 'credit card outstanding'. The RBI has released data on sectoral deployment of bank credit for December 2024 collected from 41 select commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all commercial banks.

On a year-on-year (y-o-y) basis, growth in non-food bank credit as on the fortnight ended December 27, 2024 moderated to 12.4 per cent as compared to 15.8 per cent for the corresponding fortnight of the previous year. According to the data, bank credit to agriculture and allied activities registered a growth of 12.5 per cent (y-o-y) as on the fortnight ended December 27, 2024 (19.4 per cent for the corresponding fortnight of the previous year).

Further, credit growth to industry remained almost flat at 7.4 per cent year-on-year.  In services sector too, credit growth moderated to 13.0 per cent (y-o-y) as on the fortnight ended December 27, 2024. The growth was 20 per cent for the corresponding fortnight of the previous year. The moderation was primarily due to decelerated growth in credit to 'non-banking financial companies' (NBFCs) and trade segments. However, credit growth (y-o-y) to 'computer software' and 'professional services' accelerated.

The CNX Nifty is currently trading at 23572.15, up by 63.75 points or 0.27% after trading in a range of 23479.05 and 23595.45. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 2.75%, Bharat Electronics up by 2.31%, Ultratech Cement up by 1.98%, Larsen & Toubro up by 1.50% and Mahindra & Mahindra up by 1.35%. On the flip side, Dr. Reddy's Lab down by 1.37%, Hero MotoCorp down by 1.24%, Nestle down by 0.92%, BPCL down by 0.86% and Titan down by 0.79% were the top losers.
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