Domestic indices continue to trade in green in late morning deals

Domestic equity markets continued to trade in green in late morning deals on account of buying by funds and retail investors. Buying in Maruti Suzuki, ITC, Mahindra & Mahindra, Larsen & Toubro and Titan companies’ stocks helped the markets to trade higher. Positive cues from the global markets supported domestic sentiments. Traders were getting encouragement as the Reserve Bank of India’s KLEMS database showed that the total number of employed people as a ratio of the total population has increased to 44.2 per cent in FY24 from 34.7 per cent in FY18, with the workforce growing by 168 million during the period at 643.3 million.  Shares of rice producing companies were in demand. Among individual stocks, L&T Foods, KRBL and Kohinoor Foods were trading higher. The upmove comes amid a report that the Indian government is looking to relax restrictions on exports of some varieties of rice to avoid a glut in the country.

On the global front, Asian markets were trading mostly in green following mostly positive cues from the US markets overnight. Back home, on the BSE sectoral front, traders were pilling up positions in  Auto, Consumer Durables, Utilities, FMCG and Consumer Disc, while selling was witnessed in Capital Goods, Industrials, Telecom, Oil & Gas and Energy. 

The BSE Sensex is currently trading at 80226.44, up by 266.06 points or 0.33% after trading in a range of 79998.56 and 80265.36. 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 0.19%, while Small cap index up by 0.18%.

The top gaining sectoral indices on the BSE were Auto up by 1.27%, Consumer Durables up by 1.17%, Utilities up by 1.03%, FMCG up by 0.93% and Consumer Disc up by 0.64%, while Capital Goods down by 0.26%, Industrials down by 0.22%, Telecom down by 0.15%, Oil & Gas down by 0.08% and Energy down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 5.82%, ITC up by 2.03%, Mahindra & Mahindra up by 1.15%, Titan up by 1.15% and Larsen & Toubro up by 1.14%. On the flip side, Kotak Mahindra Bank down by 1.08%, Reliance Industries down by 0.80%, Ultratech Cement down by 0.68%, Indusind Bank down by 0.33% and NTPC down by 0.20% were the top losers.

Meanwhile, rating agency Crisil in its latest report has said that securitisation volume rose to Rs 45,000 crore in the first quarter of the current fiscal (Q1FY25), marking around 17% on-year, like-to-like growth (adjusted for the exit of a large HFC and regulatory measures on gold loan securitisation). Over 95 originators, including NBFCs and banks, tapped the market to diversify funding sources, compared with around 80 in previous fiscal. Banks were also more active in the market as originators, with transaction volumes reaching around Rs 8,500 crore in the first quarter itself against around Rs 10,000 crore for the entire fiscal 2024.

The report stated that in terms of asset classes, the share of vehicle loan securitisation (including commercial vehicles and two-wheelers) in overall first-quarter volume surged 400 basis points (bps) year-on-year to around 41%, with continuing credit growth momentum among top NBFC originators. Share of mortgage-backed securitisation fell 900 bps to around 25% in line with the HFC exit, and regulatory measures on gold loan securitisation led to their share falling to negligible levels compared with around 7% in the first quarter of last fiscal. Microfinance accounted for around 14% against 10%, and other asset classes increased their share significantly by 800 bps to around 20%. These consisted of personal loan (11%) and business loan securitisation (9%).

According to the report, among the two routes of securitisation, pass-through certificates (PTCs) accounted for a higher share of around 53% against direct assignments (DAs) at around 47%. While PTCs dominated vehicle and personal loan securitisation, DAs accounted for majority of mortgage, microfinance, and business loan securitisation. Banks continue to be the major investors with over 90% market share in the overall securitisation market. While public sector banks increased their investment activity last quarter through acquisition of retail DA pools to grow their loan books, private and foreign banks predominantly invested in PTCs. NBFCs and other investors such as alternative investment funds, insurers and high net-worth individuals/family offices made up the rest.

The CNX Nifty is currently trading at 24383.45, up by 62.90 points or 0.26% after trading in a range of 24331.90 and 24395.35. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 5.76%, ITC up by 2.01%, Cipla up by 1.25%, SBI up by 1.16% and Larsen & Toubro up by 1.13%. On the flip side, Kotak Mahindra Bank down by 1.14%, ONGC down by 0.94%, Reliance Industries down by 0.77%, Apollo Hospital down by 0.74% and Ultratech Cement down by 0.73% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite gained 42.88 points or 0.59% to 7,293.86, Shanghai Composite strengthened 18.34 points or 0.63% to 2,940.79, Straits Times rose 15.2 points or 0.45% to 3,419.67, KOSPI increased 6.73 points or 0.24% to 2,864.49 and Nikkei 225 surged 930.08 points or 2.28% to 41,710.78. However, Taiwan Weighted lost 24.52 points or 0.1% to 23,853.63 and Hang Seng declined 11.7 points or 0.07% to 17,512.36.