Domestic indices trade in fine fettle in late morning deals

Domestic equity indices magnified their gains and were trading in fine fettle in late morning deals as market participants indulged in enlarging their positions. There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets also participated in the rally. BSE Mid cap index and Small cap index traded higher in range of 0.75-1.30%. Traders were getting encouragement as crude oil prices tumbled more than 4% today in global market after Israel’s retaliatory strike on Iran over the weekend bypassed Tehran’s oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East. All the sectoral indices on the BSE were trading in green led by Basic Materials, PSU, Metal, Telecom and Auto.

On the global front, Asian markets were trading mixed following weak cues from the US markets on Friday. The uncertainty about the outcome of the upcoming U.S. presidential election was weighing on market sentiment. Back home, in the stock specific development, Shriram Finance rallied after the company reported a strong performance for the second quarter of the 2024-25 financial year (Q2FY25).

The BSE Sensex is currently trading at 80233.11, up by 830.82 points or 1.05% after trading in a range of 79418.82 and 80351.49. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.76%, while Small cap index up by 1.28%.

The top gaining sectoral indices on the BSE were Basic Materials up by 1.83%, PSU up by 1.62%, Metal up by 1.56%, Telecom up by 1.54% and Auto up by 1.28%, while there were no sellers. 

The top gainers on the Sensex were Mahindra & Mahindra up by 3.54%, ICICI Bank up by 3.39%, JSW Steel up by 2.74%, Adani Ports up by 2.73% and Indusind Bank up by 2.43%. On the flip side, Axis Bank down by 1.04%, Tech Mahindra down by 0.68%, Kotak Mahindra Bank down by 0.61% and HDFC Bank down by 0.51% were the top losers.

Meanwhile, the finance ministry has said that the government has doubled the loan limit under the Pradhan Mantri Mudra Yojana (PMMY) to Rs 20 lakh to promote entrepreneurship in the country. This increase aspires to further the overall objective of the Mudra Scheme which is funding the unfunded. 

This enhancement is specifically beneficial to upcoming entrepreneurs facilitating their growth and expansion. The move is in alignment with the government's commitment in fostering a robust entrepreneurial ecosystem. As per the notification issued in this regard, the new category of Tarun Plus is for loans above Rs 10 lakh and up to Rs 20 lakh and would be available to the entrepreneurs who have availed and successfully repaid previous loans under the Tarun category. The guarantee coverage of PMMY loans up to Rs 20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU). PMMY was launched on April 8, 2015, by the government to facilitate easy collateral-free micro-credit of up to Rs 10 lakh to non-corporate, non-farm small and micro-entrepreneurs for income-generating activities.

Loans under PMMY are provided by Member Lending Institutions (MLIs) banks, Non-banking Financial Companies (NBFCs), Microfinance Institutions (MFIs), and other financial intermediaries. As per the existing scheme, banks provide collateral-free loans up to Rs 10 lakh under three categories -- Shishu (up to Rs 50,000), Kishore (between Rs 50,000 and Rs 5 lakh) and Tarun (Rs 10 lakh). 

The CNX Nifty is currently trading at 24403.65, up by 222.85 points or 0.92% after trading in a range of 24134.90 and 24440.40. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 7.04%, Adani Enterprises up by 3.77%, Mahindra & Mahindra up by 3.41%, ICICI Bank up by 3.39% and JSW Steel up by 2.70%. On the flip side, Coal India down by 2.65%, Axis Bank down by 1.19%, Bharat Electronics down by 0.81%, Tech Mahindra down by 0.70% and Kotak Mahindra Bank down by 0.62% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 48.64 points or 0.24% to 20,638.79, Shanghai Composite strengthened 9.6 points or 0.29% to 3,309.30, KOSPI increased 27.32 points or 1.05% to 2,610.59 and Nikkei 225 surged 722.32 points or 1.87% to 38,636.24. However, Jakarta Composite plunged 84.47 points or 1.11% to 7,610.19, Straits Times fell 1.46 points or 0.04% to 3,591.95 and Taiwan Weighted lost 150.38 points or 0.65% to 23,198.07.