Domestic indices remain flat in late morning deals

Domestic equity markets were trading flat in late morning deals despite positive cues from the global markets. Some market participates were booking their profits after Sensex and Nifty hit record highs for last several sessions. Meanwhile, broader indices were trading in red with BSE Mid cap index and Small cap index falling in the range of 0.10-0.50%. Traders were cautious after rising crude oil prices amid concerns that growing conflict in the Middle East could hit regional supply. However, there were some encouragement in markets as the Asian Development Bank (ADB) in its Asian Development Outlook (ADO) update of September retained India's growth forecast for the current fiscal at 7 per cent and said that the economy is expected to accelerate in the coming quarters on improved farm output, and higher Government spending. On the sectoral front, traders were ween pilling up positions in Utilities, Power, Metal, Bankex and Basic Materials, while selling was witnessed in FMCG, IT, Consumer Durables, Consumer Disc and TECK.

On the global front, Asian markets were trading mostly in green following positive cues from the US markets overnight.  Sentiments remained upbeat after China's central bank unveiled its biggest stimulus since the pandemic to support the nation's economy, primarily the property sector.  Back home, in the stock specific development, Hindustan Foods jumped after the company announced that it has initiated the merger of soups, spices and seasoning manufacturing facilities in Nashik.

The BSE Sensex is currently trading at 84932.20, up by 18.16 points or 0.02% after trading in a range of 84743.04 and 84996.85. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.46%, while Small cap index down by 0.12%.

The top gaining sectoral indices on the BSE were Utilities up by 0.56%, Power up by 0.42%, Metal up by 0.20%, Bankex up by 0.13% and Basic Materials up by 0.07%, while FMCG down by 0.90%, IT down by 0.52%, Consumer Durables down by 0.40%, Consumer Disc down by 0.36% and TECK down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 3.40%, Axis Bank up by 1.11%, HDFC Bank up by 0.64%, Bajaj Finance up by 0.54% and ICICI Bank up by 0.50%. On the flip side, Tech Mahindra down by 2.06%, Tata Motors down by 1.44%, Hindustan Unilever down by 1.05%, JSW Steel down by 0.98% and SBI down by 0.76% were the top losers.

Meanwhile, Domestic rating agency ICRA in its latest report has said that the slower deposit growth will push banks to mop-up up to Rs 1.3 lakh crore from bond issuances in FY25. The bond issuances, coming amidst a continuing wedge between deposit and credit growth, will come between Rs 1.2-1.3 lakh crore and will be the highest ever for the system. It said nearly 85 per cent of the bond issuances will be by public sector banks and added that the higher appetite for infra bonds among such lenders will drive the market.

According to the report, tight liquidity conditions and credit growth continuously surpassing deposit growth has necessitated fundraising by banks from alternate sources. Banks had raised Rs 1 lakh crore from the bond issuances avenue in FY24, while the previous all-time high was reached in FY23 at Rs 1.1 lakh crore. With the mid-fiscal year mark approaching, it said banks have already raised Rs 76,700 crore from bonds till now, which is an over 225 per cent growth over the resources mobilised during the same period in FY24. 

The report said as private banks are focusing on reducing their credit-to-deposit ratio, fundraising through bonds is largely being dominated by public banks this year. Infra-bond issuances have seen higher volumes due to the government of India's focus on infrastructure spending, availability of a sizable infrastructure loan book that is eligible to be funded through this instrument and strong demand from insurance companies and provident funds for long-term issuances.

The CNX Nifty is currently trading at 25922.00, down by 18.40 points or 0.07% after trading in a range of 25891.70 and 25954.15. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 3.36%, Divi's Lab up by 1.28%, Axis Bank up by 1.10%, HDFC Bank up by 0.69% and Bajaj Finance up by 0.51%. On the flip side, LTIMindtree down by 2.17%, Tech Mahindra down by 1.99%, Tata Consumer down by 1.95%, Tata Motors down by 1.47% and Britannia down by 1.20% were the top losers.

Asian markets were trading mostly higher; Hang Seng advanced 306.72 points or 1.61% to 19,307.28, Shanghai Composite strengthened 46.93 points or 1.64% to 2,910.06, Nikkei 225 surged 75.57 points or 0.2% to 38,016.16 and Taiwan Weighted added 333.77 points or 1.49% to 22,765.55. However, Jakarta Composite plunged 97.5 points or 1.27% to 7,680.99, Straits Times fell 30.08 points or 0.83% to 3,592.66 and KOSPI dropped 10.49 points or 0.4% to 2,621.19.