Markets remain higher in early noon deals

Indian equity benchmarks remained higher in early afternoon deals, with both Sensex and Nifty holding notable gains, aided by positive cues from other Asian markets along with heavy buying at IT and TECK counters. Sentiments remained positive, after Finance Minister Nirmala Sitharaman emphasised the significant strides India has made in reducing inequality over the last decade. The minister noted that India’s policies have been pivotal in bridging inequality across various segments of society, with a comprehensive approach to financial inclusion, poverty alleviation, and infrastructure development. 

On the global front, Asian markets were trading mostly in green, after Singapore's consumer price inflation moderated further in September to the lowest level in three-and-a-half years, mainly driven by a steeper fall in private transport costs. The data published by the Monetary Authority of Singapore and the Ministry of Trade and Industry showed that the consumer price index rose 2.0 percent on a yearly basis in September, slower than the 2.2 percent stable rate of increase in August.  Moreover, this was the lowest inflation rate since March 2021, when prices had risen 1.3 percent.

The BSE Sensex is currently trading at 80501.51, up by 280.79 points or 0.35% after trading in a range of 79891.68 and 80646.31. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.98%, while Small cap index was up by 1.23%.

The top gaining sectoral indices on the BSE were IT up by 2.39%, TECK up by 1.64%, Consumer Durables up by 1.01%, Telecom up by 0.91% and Consumer discretionary up by 0.80%, while Power down by 0.84%, Utilities down by 0.63%, Capital Goods down by 0.43%, PSU down by 0.41% and Realty down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 5.74%, Bajaj Finserv up by 2.72%, Tech Mahindra up by 2.33%, TCS up by 1.60% and Infosys up by 1.57%. On the flip side, NTPC down by 1.65%, Adani Ports & SEZ down by 1.43%, ICICI Bank down by 1.37%, Larsen & Toubro down by 0.89% and Axis Bank down by 0.75% were the top losers.

Meanwhile, domestic rating agency Crisil has said that the Reserve Bank of India’s (RBI) recent notification asking financiers to review their gold loan practices can slow down loan growth in the near-term and lead to an uptick in asset quality stress. It said potentially, this could impact gold loan disbursements during the transition phase and curb growth in the business. It can be noted that a few weeks ago, RBI had flagged certain irregular practices in loan against gold jewellery and asked lenders to comprehensively review their policies, processes and practices to identify gaps and initiate remedial measures in a time-bound manner.

According to the agency, the notification had flagged deficiencies in the monitoring of the loan-to-value (LTV) ratio, asset classification norms for overdue loan accounts, and inadequate due-diligence in monitoring the end-use of gold loans. It said reported loan delinquencies may see some uptick as entities revisit their current non-performing asset (NPA) recognition norms and/or policies and procedures for disbursing loans to existing customers. 

However, the rating agency said it was quick to add that in the gold loan business, credit cost is the more appropriate indicator of asset quality and overall credit losses are seen under control because of Indians' emotional attachment to the precious metal. It added that ability of lenders to maintain conservative LTV as well as to conduct timely auctions and recover dues also supports low ultimate credit losses.

The CNX Nifty is currently trading at 24556.50, up by 84.40 points or 0.34% after trading in a range of 24378.10 and 24604.25. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 5.67%, Bajaj Auto up by 3.16%, Bajaj Finserv up by 2.73%, Tech Mahindra up by 2.56% and Hero MotoCorp up by 1.68%. On the flip side, NTPC down by 1.80%, Adani Ports &Special down by 1.49%, ICICI Bank down by 1.38%, Eicher Motors down by 1.19% and Shriram Finance down by 1.02% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 232.67 points or 1.12% to 20,731.62, Shanghai Composite strengthened 15.85 points or 0.48% to 3,301.72, Straits Times rose 15.32 points or 0.43% to 3,602.73 and KOSPI increased 28.92 points or 1.11% to 2,599.62, while Jakarta Composite plunged 8.57 points or 0.11% to 7,780.41, Nikkei 225 slipped 307.1 points or 0.81% to 38,104.86 and Taiwan Weighted lost 200.67 points or 0.86% to 23,334.76.