Domestic indices continue to trade in red in early noon session

Domestic equity indices continued to trade in red in early noon session on account of profit Booking. Selling in SBI, Infosys, NTPC and Kotak Mahindra dragged the markets to trade in red. Muted cues from global markets also weighed on the domestic sentiments. However, losses were limited as Assocham said India is likely to remain the fastest-growing major economy in the world in 2024 on the back of strong consumer demand leading to a pick-up in investment across sectors such as construction, hospitality and infrastructure including railways and aviation. Besides, broader indices were trading in green with  BSE Mid cap index and Small cap index gaining in the range of 0.40-0.50%. On the BSE sectoral front, traders were seen pilling up position in Telecom, Auto, FMCG, Consumer Disc and Industrials, while selling was witnessed in Oil & Gas, PSU, Energy, Bankex and IT. 

On the global front, Asian markets were trading mixed following muted cues from the US markets overnight.  Back home, in the stock specific development, Innova Captab has debuted at Rs 456.10 on the BSE, up by 8.10 points or 1.80% from its issue price of Rs 448.

The BSE Sensex is currently trading at 72272.60, down by 137.78 points or 0.19% after trading in a range of 72092.55 and 72417.01. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.42%, while Small cap index up by 0.49%.

The top gaining sectoral indices on the BSE were Telecom up by 1.58%, Auto up by 1.40%, FMCG up by 0.94%, Consumer Disc up by 0.76% and Industrials up by 0.31%, while Oil & Gas down by 0.95%, PSU down by 0.89%, Energy down by 0.86%, Bankex down by 0.64% and IT down by 0.56% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 5.40%, Hindustan Unilever up by 0.93%, Tata Steel up by 0.90%, Nestle up by 0.84% and Mahindra & Mahindra up by 0.65%. On the flip side, SBI down by 1.53%, Infosys down by 1.37%, NTPC down by 1.13%, Kotak Mahindra Bank down by 1.04% and Titan down by 0.98% were the top losers.

Meanwhile, the Reserve Bank of India’s (RBI's) Financial Stability Report (FSR) has said that net non-performing assets (NPA) ratio of banks declined to a multi-year low of 0.8 per cent at the end of September 2023 and the country's domestic financial system remains resilient. The resilience of the non-banking financial companies (NBFCs) sector improved with CRAR at 27.6 per cent, GNPA ratio at 4.6 per cent and return on assets (RoA) at 2.9 per cent, respectively, in September 2023. It noted that the gross non-performing assets (GNPA) ratio of banks also declined to a multi-year low of 3.2 per cent.

The report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system. It further said that the capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBS) stood at 16.8 per cent and 13.7 per cent, respectively, in September 2023. It added that macro stress tests for credit risk reveal that SCBs would be able to comply with minimum capital requirements, with the system-level CRAR in September 2024 projected at 14.8 per cent, 13.5 per cent and 12.2 per cent, respectively, under baseline, medium and severe stress scenarios. 

Referring to the present state of Indian economy, it said the domestic financial system remained resilient, supported by strong macroeconomic fundamentals, healthy balance sheets of financial institutions, moderating inflation, improving external sector position and continuing fiscal consolidation. However, it said the global economy faces multiple challenges, including prospects of slowing growth, large public debt, increasing economic fragmentation, and prolonging geopolitical conflicts.

The CNX Nifty is currently trading at 21739.60, down by 39.10 points or 0.18% after trading in a range of 21680.10 and 21770.30. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 5.46%, Tata Consumer Produc up by 3.34%, Britannia up by 1.89%, Adani Enterprises up by 1.51% and Adani Ports &Special up by 1.04%. On the flip side, BPCL down by 2.81%, ONGC down by 1.78%, Coal India down by 1.71%, SBI down by 1.58% and Infosys down by 1.34% were the top losers.

Asian markets are trading mixed; Hang Seng declined 23.52 points or 0.14% to 17,020.01, Nikkei 225 slipped 156.57 points or 0.47% to 33,383.05 and Jakarta Composite plunged 26.41 points or 0.36% to 7,277.48. However, Straits Times rose 33.07 points or 1.03% to 3,247.47, Shanghai Composite strengthened 13.84 points or 0.47% to 2,968.54 and Taiwan Weighted added 20.44 points or 0.11% to 17,930.81.