Domestic indices maintain gains in early noon session

Domestic equity indices maintained their gains and were trading higher over half percent in early noon session as market participants indulged in enlarging their positions. Hectic buying in Maruti Suzuki, Tata Motors, Larsen & Toubro and Tata steel helped the markets to maintain their gains. Meanwhile, broader indices outperformed their larges peers with BSE Mid cap index and Small cap index gaining in the range of 0.90-1.35%. Positive cues from global markets also supported the domestic sentiments. The sentiments were further supported by Indian rupee appreciating 11 paise to 83.16 against the dollar at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.

On the global front, Asian markets were trading mostly in green, following positive cues from US markets overnight, as traders reacted to the prospects of a rate cut by the US Fed early next year. Back home, all the sectoral indices on the BSE were trading higher led by Metal, Auto, Realty, Healthcare and Telecom. 

The BSE Sensex is currently trading at 71230.81, up by 365.71 points or 0.52% after trading in a range of 70758.34 and 71259.55. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.93%, while Small cap index up by 1.14%.

The top gaining sectoral indices on the BSE were Metal up by 1.77%, Auto up by 1.62%, Realty up by 1.61%, Healthcare up by 1.53% and Telecom up by 1.31%, while there were no losers. 

The top gainers on the Sensex were Tata Motors up by 2.69%, Maruti Suzuki up by 2.66%, Tata Steel up by 2.10%, HCL up by 1.90% and Larsen & Toubro up by 1.76%. On the flip side, HDFC Bank down by 0.58% and Reliance Industries down by 0.38% were the only losers.

Meanwhile, credit rating agency CRISIL in its latest report has said that domestic shipping companies are likely to see a further 5-7 per cent decline in revenue in the next financial year (FY25) amid normalisation of the rates. This follows a steep 23-25 per cent fall in their revenue in the current fiscal (FY23) after a 35 per cent growth in the last financial year when charter rates had surged because of geopolitical conflicts (including the Russia-Ukraine war) and higher demand from China post-pandemic. 

While the margin profile may vary widely across players operating in different segments, the report said the average operating margin may continue to moderate to 33-35 per cent in the next fiscal driven mainly by the correction in charter rates. However, it will remain higher than the pre-pandemic levels of 25-30 per cent. It said this along with modest capital expenditure (capex) plans, should sustain the healthy credit risk profiles of shipping companies. It stated that the shipping fleet of domestic companies is dominated by tankers that carry crude oil and petroleum products (contributing to around 70 per cent of total DWT), followed by dry bulk carriers carrying unpackaged commodities such as coal, iron ore and grains (around 20 per cent). It added that the balance is distributed between container ships, gas carriers and others. It said the charter rates correlate with the global demand-supply dynamics. 

According to the report, charter rates for crude oil and petroleum product tankers will be supported by growing imports by China and India; also, to be aided by better fleet utilisation given higher tonne-mile demand due to change in trade routes following the Russia-Ukraine conflict. On the supply side, it said capacity addition for tankers is expected to remain limited given the decadal-low orderbook, which will keep charter rates much higher than the pre-pandemic level of $15,000-25,000/day.  

The CNX Nifty is currently trading at 21381.00, up by 125.95 points or 0.59% after trading in a range of 21248.15 and 21390.50. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 3.14%, Tata Motors up by 2.65%, Maruti Suzuki up by 2.65%, Coal India up by 2.39% and Tata Steel up by 2.10%. On the flip side, BPCL down by 0.88%, HDFC Bank down by 0.60%, Grasim Industries down by 0.55%, Reliance Industries down by 0.36% and HDFC Life Insurance down by 0.02% were the top losers.

Asian markets weretrading mostly in green; Nikkei 225 surged 28.58 points or 0.09% to 33,169.05, Taiwan Weighted added 52.89 points or 0.3% to 17,596.63, Straits Times rose 26.92 points or 0.86% to 3,139.42, KOSPI increased 1.33 points or 0.05% to 2,601.35 and Jakarta Composite gained 30.52 points or 0.42% to 7,240.14. However, Shanghai Composite weakened 5.66 points or 0.19% to 2,913.05 and Hang Seng declined 234.17 points or 1.43% to 16,386.96.