Markets trade flat with positive bias in late morning deals

Indian equity markets were trading flat with marginal gains in late morning deals, amid mixed cues from other Asian markets. Meanwhile, broader indices on the BSE were also trading with marginal gains. Traders were getting some encouragement with B B Swain, Secretary to the Union Ministry for Micro, Small and Medium Enterprises (MSMEs) stating that the government has acknowledged MSMEs' contribution to the country's economic growth, and the Budget 2023-24 has given a boost to the fund-starved sector with higher credit flow and by simplifying compliances. Oil marketing companies BPCL, HPCL and IOC were moving higher despite oil extended gains on optimism over China demand and signs of crude loading disruptions in Turkey.

On the global front, Asian markets were trading mixed following the broadly negative cues from US markets overnight, on continuing concerns over the outlook for interest rates and a global economic slowdown. The rising geopolitical tensions between Washington and Beijing in recent days were also weighing on the markets. Back home, in the stock specific development, Trent rallied after the company reported strong revenue growth in December quarter (Q3FY23).

The BSE Sensex is currently trading at 60750.68, up by 86.89 points or 0.14% after trading in a range of 60472.81 and 60757.70. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.09%, while Small cap index up by 0.02%.

The top gaining sectoral indices on the BSE were Industrials up by 0.50%, Capital Goods up by 0.35%, IT up by 0.34%, TECK up by 0.17% and Consumer Durables up by 0.09%, while Utilities down by 0.73%, Power down by 0.68%, Telecom down by 0.47%, Realty down by 0.45% and Bankex down by 0.19% were the losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 1.98%, Bajaj Finance up by 1.93%, Asian Paints up by 0.99%, Infosys up by 0.71% and Larsen & Toubro up by 0.66%. On the flip side, Bharti Airtel down by 1.33%, Tata Motors down by 0.81%, Axis Bank down by 0.76%, Maruti Suzuki down by 0.76% and Tata Steel down by 0.36% were the top losers.

Meanwhile, B B Swain, Secretary to the Union Ministry for Micro, Small and Medium Enterprises (MSMEs) has said that the government has acknowledged MSMEs' contribution to the country's economic growth, and the Budget 2023-24 has given a boost to the fund-starved sector with higher credit flow and by simplifying compliances. He said availability, accessibility and affordability of credit/funds are the main challenges of the sector.

Swain said the launch of a revamped credit guarantee scheme worth Rs 9,000 crore for MSMEs would enable collateral-free credit of Rs 2 lakh crore loans to small businesses. Moreover, he said by reducing the guarantee fee to 1.3 per cent, the government has eased collateral credit/funding for the MSMEs. This will go a long way to support the sector. These measures can be game changers.

He further said the MSMEs catering to the foundry industry stand benefitted from several measures the government has taken up. He said over 15,000 MSMEs (out of 5 crore from all sectors) from the foundry industry play the role of a powerful catalyst in making India one of the largest producers and exporters of casting products in the world.

The CNX Nifty is currently trading at 17881.45, up by 9.75 points or 0.05% after trading in a range of 17779.80 and 17887.75. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 2.08%, Bajaj Finance up by 1.96%, HDFC Life Insurance up by 1.81%, Grasim Industries up by 1.43% and SBI Life up by 1.11%. On the flip side, Adani Enterprises down by 8.41%, Adani Ports & SEZ down by 3.09%, Hero MotoCorp down by 1.67%, Bharti Airtel down by 1.34% and UPL down by 0.96% were the top losers.

Asian markets were trading mixed; Taiwan Weighted lost 19.46 points or 0.12% to 15,598.71, KOSPI dropped 1.45 points or 0.06% to 2,482.19 and Straits Times fell 26.37 points or 0.78% to 3,362.15. However, Hang Seng advanced 210.63 points or 0.98% to 21,494.15, Shanghai Composite strengthened 31.38 points or 0.96% to 3,263.49, Jakarta Composite gained 8.93 points or 0.13% to 6,949.05 and Nikkei 225 surged 2.18 points or 0.01% to 27,608.64.