Key gauges continue to trade in green in morning deals

Indian equity benchmarks trimmed some gains but continued to trade in green in morning deals, on the back of revived global sentiments. Sentiments remained positive with report that Goods and services tax (GST) collections in September are likely to be about Rs 1.45 trillion, and the monthly average mop-up in FY23 could be around Rs 1.55 trillion. Some support also came as rating agency Icra retained its previous growth forecast of 7.2 per cent for the current fiscal, citing revival in contact-intensive services and a pick-up in government and private expenditure. However, gains remain capped as some concern came with data available on the NSE showed that foreign institutional investors (FIIs) net offloaded shares worth Rs 2,772.49 crore on September 28, 2022. Meanwhile, capital markets regulator Sebi came out with guidelines pertaining to preferential issues and institutional placement of units by emerging investment vehicles -- REIT and InvIT. However, sustained selling by foreign portfolio investors likely to dampen sentiments in markets .

On the global front, Asian markets are trading mostly in green after the Bank of England (BoE) said it would buy long-dated government bonds on 'whatever scale is necessary' to address dysfunction in the gilt market. Back home, battery industry stocks remained in watch with a private report stating that India's Li-ion battery demand will grow from the current stage of 3 GWh to 20 GWh by 2026 and 70 GWh by 2030. It added that this will need over $10 billion to boost cell manufacturing and raw material refining to serve the local demand.

The BSE Sensex is currently trading at 56872.96, up by 274.68 points or 0.49% after trading in a range of 56872.21 and 57166.14. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.69%, while Small cap index was up by 1.19%.

The top gaining sectoral indices on the BSE were Metal up by 2.22%, Utilities up by 1.27%, Energy up by 1.23%, Power up by 1.20% and FMCG up by 1.20%, while IT down by 0.05% was the lone losing index on BSE.

The top gainers on the Sensex were Tata Steel up by 2.52%, Sun Pharma up by 2.52%, ITC up by 2.34%, NTPC up by 1.80% and Dr. Reddy's Lab up by 1.75%. On the flip side, Asian Paints down by 2.23%, TCS down by 0.63%, Tech Mahindra down by 0.34% and Titan Co down by 0.15% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its report on 'Basic Statistical Return on Credit by Scheduled Commercial Banks (SCBs) in India March 2022' has said that the share of industrial loans in total credit has been gradually declining over the last decade while that of personal loans is on the rise. Both industrial and personal loans had nearly 27 per cent credit share each in March 2022. Loans to the industrial sector recorded 4.7 per cent growth in 2021-22 after witnessing a decline in the previous year.

Further, it said as credit demand from the retail segment has become more distinct in recent years, the portion of small-sized loans is also going up steadily. The share of loans up to Rs one crore has surged to nearly 48 per cent in March 2022 from around 39 per cent five years ago, whereas the share of loans above Rs 10 crore fell to nearly 40 per cent from around 49 per cent over the same period, notwithstanding the price effect on loan-size over time.

The share of loans bearing less than 7 per cent interest rate rose to 23.6 per cent in March 2022 compared to 15.1 per cent a year ago. It also said the declining share of public sector banks (PSBs) to total bank credit has continued. PSBs' share in total credit by SCBs stood at 54.8 per cent in March 2022 compared to 65.8 per cent five years ago and 74.2 per cent ten years ago.

On the other hand, it stated the share of private sector banks nearly doubled to 36.9 per cent over the last ten years. Bank branches in urban, semi-urban, and rural areas maintained double-digit annual growth in credit in March 2022, whereas credit growth for metropolitan branches increased significantly to 9.2 per cent from 1.4 per cent in the previous year. Maharashtra (26.2 per cent), the National capital territory (NCT) of Delhi (11.3 per cent), Tamil Nadu (9.2 per cent) and Karnataka (6.8 per cent) together accounted for over half of the credit extended by banks.

The CNX Nifty is currently trading at 16956.75, up by 98.15 points or 0.58% after trading in a range of 16953.25 and 17026.05. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.60%, ONGC up by 2.94%, Sun Pharma up by 2.65%, Tata Steel up by 2.57% and ITC up by 2.31%. On the flip side, Asian Paints down by 2.22%, Hero MotoCorp down by 1.06%, Bajaj Auto down by 0.65%, TCS down by 0.57% and Tech Mahindra down by 0.36% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 277.50 points or 1.06% to 26,451.48, Hang Seng increased 216.01 points or 1.25% to 17,466.89, Taiwan Weighted strengthened 101.05 points or 0.75% to 13,567.12, KOSPI rose 26.39 points or 1.22% to 2,195.68, Straits Times advanced 31.17 points or 1% to 3,147.48 and Shanghai Composite gained 8.26 points or 0.27% to 3,053.33.

On the flip side, Jakarta Composite lost 7.16 points or 0.1% to 7,069.87.