Markets trade higher with gains of over quarter percent

Indian equity markets were trading higher with gains of over quarter a percent in late morning deals on account buying in banking and NBFC stocks. Traders were getting encouragement after the RBI announced its decision to hold the key lending rate at the exiting 6.5 per cent. Moreover, the RBI has marginally raised its GDP growth projection for FY24 to 6.5% from earlier estimate of 6.4%. Some support also came in amid report that days after launch of the Foreign Trade Policy (FTP) for 2023, leading industry bodies have said that this policy will further boost business sentiments to reach the aspirational target of India becoming a leader in exports. On the sectoral front, Realty, Utilities, Power, Industrials and Banking witnessed the maximum gains in trade, while Metal, IT, TECK, FMCG and Consumer Durables remained the top losers on the BSE sectoral space.

On the global front, Asian markets were trading lower following the mixed cues from global markets overnight, amid concerns about the economic outlook following the release of some disappointing economic data which reignited fears of a recession. Back home, in the stock specific development, Cholamandalam Investment and Finance jumped after logging 65% YoY rise in disbursements for March quarter to about 210.2 billion Rupees.

The BSE Sensex is currently trading at 59882.94, up by 193.63 points or 0.32% after trading in a range of 59520.12 and 59925.08. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.46%, while Small cap index up by 0.47%.

The top gaining sectoral indices on the BSE were Realty up by 1.94%, Utilities up by 1.00%, Power up by 0.87%, Industrials up by 0.56% and Bankex up by 0.56%, while Metal down by 0.75%, IT down by 0.43%, TECK down by 0.34%, FMCG down by 0.27% and Consumer Durables down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.31%, Indusind Bank up by 2.01%, SBI up by 1.53%, Bajaj Finserv up by 1.30% and Mahindra & Mahindra up by 0.94%. On the flip side, HCL down by 1.09%, Tech Mahindra down by 1.07%, Nestle down by 0.70%, Titan down by 0.54% and Infosys down by 0.47% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its latest data has showed that bank credit increased by 15 per cent year-on-year (YoY) in the fiscal ended March 2023 (FY23) as against 9.6 per cent YoY in the previous financial year (FY22). FY23 credit growth is highest since 2011-12, when it was 19.3 per cent. Bank deposits expanded 9.58 per cent YoY in FY23, as against 8.9 per cent YoY growth seen in FY22.

Data further showed that bank deposit mobilisation lagged behind credit disbursements in FY23. They raised Rs 15.78 trillion through deposits in FY23, against Rs 13.51 trillion raised in FY22. The credit in absolute terms rose Rs 17.83 trillion in FY23, up from Rs 10.43 trillion in FY22. Credit offtake was strong for most of FY23, but the challenge was in garnering additional resources amid tightening liquidity in the aftermath of a change in the RBI’s stance and hike in policy repo rates.

According to the RBI’s Scheduled Bank’s Statement of Position in India, the outstanding credit stood at Rs 136.75 trillion at the end of the last fortnight of FY23 (March 24, 2023), up from Rs 118.91 trillion a year ago (March 25, 2022).

The CNX Nifty is currently trading at 17607.15, up by 50.10 points or 0.29% after trading in a range of 17502.85 and 17621.10. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 3.86%, Bajaj Finance up by 2.28%, Indusind Bank up by 1.89%, Adani Ports up by 1.68% and SBI up by 1.54%. On the flip side, ONGC down by 1.37%, HCL down by 1.12%, Tech Mahindra down by 1.07%, Nestle down by 0.79% and Coal India down by 0.74% were the top losers.

All Asian markets were trading lower; Taiwan Weighted lost 57.29 points or 0.36% to 15,810.77, Hang Seng declined 70.08 points or 0.35% to 20,204.51, Shanghai Composite weakened 0.78 points or 0.02% to 3,311.78, KOSPI dropped 32.06 points or 1.28% to 2,463.15, Jakarta Composite plunged 14.69 points or 0.22% to 6,804.99, Straits Times fell 20.35 points or 0.61% to 3,298.52 and Nikkei 225 slipped 338.33 points or 1.22% to 27,474.93.