Benchmarks remain in green in morning deals

Indian equity benchmarks continued to trade with traction in morning deals, helped by falling global crude oil prices. Traders also took support with a Crisil Ratings’ latest report stating that securitisation volumes have jumped 48 per cent to over Rs 75,000 crore for the first half of the fiscal (H1FY23). It said the long track record of stable performance of securitised pools, despite several episodes of adversity, may have eased investor concerns, but some investors continue to be apprehensive. Some support also came as ICRA Ratings said after rising steeply for a month, the cost of market borrowing for states declined sharply on Tuesday with the weighted average cut-off falling by 11 basis points to 7.72 per cent from 7.83 per cent last week.

On the global front, Asian markets are trading mostly in red as traders awaited British inflation readings later in the day for clues on how hawkish central banks need to be to fight inflation. Back home, stocks related to telecom sector remained in watch as report said job postings for 5G and telecommunications have witnessed significant uptick in the last 12 months, as enterprises are looking at 5G adoption at an accelerated pace.

The BSE Sensex is currently trading at 59325.65, up by 365.05 points or 0.62% after trading in a range of 59148.52 and 59362.22. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.41%, while Small cap index was up by 0.55%.

The top gaining sectoral indices on the BSE were Energy up by 1.17%, Oil & Gas up by 0.98%, Auto up by 0.72%, Capital Goods up by 0.71% and Consumer Durables up by 0.60%, while TECK down by 0.35%, IT down by 0.34% and Healthcare down by 0.04% were the few losing indices on BSE.

The top gainers on the Sensex were HDFC up by 2.70%, Reliance Industries up by 2.05%, Power Grid up by 1.98%, Axis Bank up by 1.89% and HDFC Bank up by 1.58%. On the flip side, SBI down by 1.10%, Sun Pharma down by 0.89%, HCL Technologies down by 0.87%, Infosys down by 0.73% and Indusind Bank down by 0.54% were the top losers.

Meanwhile, a domestic rating agency Crisil Ratings in its latest report has said that securitisation volumes have jumped 48 per cent to over Rs 75,000 crore for the first half of the fiscal (H1FY23). It can be noted that securitisation activity, wherein a lender transfers its future receivables on a loan to other financier against a cut, had suffered a lot during FY22 because of the devastating second wave of the coronavirus pandemic which made loan recollections difficult.

According to the report, the long track record of stable performance of securitised pools, despite several episodes of adversity, may have eased investor concerns, but some investors continue to be apprehensive. The reticence of some investors to take fresh exposure led to some deals remaining unexecuted, shaving off nearly 10 per cent from the segment's potential growth.

The report further said mortgage-backed securitisation loans remain the largest segment among asset classes, accounting for 40 per cent of market volume, followed by commercial vehicle loans at 30 per cent and microfinance loans at 13 per cent. It said direct Assignment (DA) transactions, including mortgage, gold and microfinance loans, accounted for 62 per cent of the volume, adding that the share of Pass-Through Certificates (PTCs) declined to 38 per cent from 44 per cent a year ago. Private sector banks bought over half of the loan assets, while the state-run banks did a fourth of the volume.

The CNX Nifty is currently trading at 17597.60, up by 110.65 points or 0.63% after trading in a range of 17535.75 and 17601.25. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were HDFC up by 2.71%, Reliance Industries up by 2.45%, Bajaj Auto up by 2.15%, Axis Bank up by 1.92% and Power Grid up by 1.91%. On the flip side, SBI down by 1.08%, HCL Technologies down by 0.83%, Sun Pharma down by 0.74%, Infosys down by 0.72% and Indusind Bank down by 0.47% were the top losers.

Asian markets are trading mostly in red; KOSPI fell 3.17 points or 0.14% to 2,246.78, Shanghai Composite declined 15.78 points or 0.51% to 3,065.18, Taiwan Weighted dropped 108.84 points or 0.83% to 13,015.84 and Hang Seng decreased 198.75 points or 1.18% to 16,715.83.

On the flip side, Nikkei 225 surged 148.95 points or 0.55% to 27,305.09, Jakarta Composite soared 45.37 points or 0.66% to 6,879.86 and Straits Times advanced 11.73 points or 0.39% to 3,037.61.