Benchmarks remain higher in noon deal

Indian equity benchmarks maintained their gains in noon deals. Buying in Tata Steel, ICICI Bank, Infosys and JSW Steel companies’ stocks helped markets to trade above neutral lines. Traders were getting encouragement with report that pointing out the sustained growth of the Indian economy over the past decade. European Parliament think tank expert, Angelos Delivorias said that India's GDP growth exceeding that of China reflects New Delhi's emergence as a formidable economic powerhouse in the global arena. Delivorias stated ‘India has surpassed the growth rate of China, and experts think that it will continue doing so, at least in the short term.’ Traders overlooked the Reserve Bank of India’s (RBI) report stating that frequent weather shocks caused by climate change pose challenges for the monetary policy as well as downside risks to economic growth. 

On the global front, Asian markets were trading mostly in green ahead of this week's U.S. inflation data and a crucial European Central Bank meeting. Back home, logistic industry remained focused after Rating agency ICRA in its latest report has said that revenue of Indian road logistics industry will remain range-bound and grow at a slower pace of 3-6 per cent in the current financial year (FY25). It said operating profit margins are expected to remain range-bound at 10.5-12.5 per cent in FY25 as concerns on cost inflation persist.

The BSE Sensex is currently trading at 74938.49, up by 195.99 points or 0.26% after trading in a range of 74792.77 and 75124.28. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.03%, while Small cap index up by 0.28%.

The top gaining sectoral indices on the BSE were Metal up by 1.43%, Realty up by 1.09%, Basic Materials up by 0.91%, Bankex up by 0.72% and Utilities up by 0.43%, while FMCG down by 0.37%, Energy down by 0.35%, Industrials down by 0.09%, Capital Goods down by 0.05% and Oil & Gas down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 2.54%, Tata Steel up by 2.33%, Infosys up by 1.54%, JSW Steel up by 1.21% and Axis Bank up by 0.90%. On the flip side, Tech Mahindra down by 1.19%, Reliance Industries down by 0.86%, Asian Paints down by 0.79%, TCS down by 0.62% and Hindustan Unilever down by 0.57% were the top losers.

Meanwhile, Crisil Ratings in its latest report has said that co-lending assets under management (AUM) of non-banking financial companies (NBFCs) is nearing Rs 1 lakh crore after more than 5 years since the model came into being. According to the report, a study of about 100 NBFCs, accounting for over 90 per cent of the sector's AUM, showed that personal loans alone account for about a third of the AUM, followed by housing loans at 20 per cent and unsecured MSME loans and gold loans each making up 13 per cent of the pie. It noted that secured micro, small and medium enterprises (MSME) (including loan against property) and vehicle loans comprise the rest 20 per cent of the current overall co-lending book.

The report stated that under the co-lending model, banks are permitted to co-lend with all registered NBFCs based on a prior agreement. Over the medium term, growth momentum is seen healthy at 35-40 per cent annually, amidst rising interests of partners - NBFCs as well as banks. The partners, however, may increase their focus on other asset classes such as loans to MSME and home loans given higher risk weights for personal loans.

The CNX Nifty is currently trading at 22687.55, up by 21.25 points or 0.09% after trading in a range of 22668.95 and 22768.40. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 2.91%, Hindalco up by 2.66%, ICICI Bank up by 2.49%, Tata Steel up by 1.88% and Infosys up by 1.42%. On the flip side, Coal India down by 2.01%, Tech Mahindra down by 1.45%, Shriram Finance down by 1.18%, Reliance Industries down by 1.07% and TCS down by 0.97% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 426.09 points or 1.07% to 39,773.13, Taiwan Weighted added 378.5 points or 1.82% to 20,796.20, Hang Seng advanced 132.79 points or 0.79% to 16,865.64, Straits Times rose 28.66 points or 0.89% to 3,244.65 and Shanghai Composite strengthened 1.39 points or 0.05% to 3,048.44, while KOSPI dropped 12.49 points or 0.46% to 2,705.16.