Domestic equity indices erased all losses and were trading in green in late morning deals on account of hectic buying in TCS, Tech Mahindra, HCL Technologies, Infosys and Bajaj Finserv. Sentiments got boost after TCS during the December quarter (Q3FY25) recorded a healthy total contract value (TCV) of $10.2 billion. The management of company said though the company experienced negative constant-currency growth across major geographies in Q3, they are confident about better growth in CY25 than in CY24. Further, support also came in as private report said consumer price inflation in India likely fell to 5.3 per cent in December on moderating food price rises, bolstering expectations for an interest rate cut by the central bank next month amid slowing economic growth. However, broader indices underperformed their large peers with BSE Mid cap index and Small cap index falling in the range of 0.85-1.30%. On the BSE sectoral front, traders were seen pilling up positions in IT, TECK and Oil & Gas, while selling was witnessed in Healthcare, Power, Basic Materials, Utilities and Industrials.
On the global front, Asian markets were trading mostly in red as investors assessed November pay and household spending out from Japan. Real household spending in Japan fell 0.4% year on year in November, a softer fall compared to the 0.6% decline expected by street. The fall was also less than the 1.3% decline seen in October. The average real income per household stood at 514,409 yen ($3,252.98) in November, up 0.7% from the previous year. Back home, in the stock specific development, Adani Wilmar dropped after the company’s promoter, Adani Commodities, began its partial stake sale via offer for sale (OFS) on January 10, 2025.
The BSE Sensex is currently trading at 77730.86, up by 110.65 points or 0.14% after trading in a range of 77099.55 and 77900.92. There were 12 stocks advancing against 18 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index was down by 0.87%, while Small cap index down by 1.30%.
The few gaining sectoral indices on the BSE were IT up by 2.20%, TECK up by 1.87% and Oil & Gas up by 0.09%, while Healthcare down by 1.31%, Power down by 1.19%, Basic Materials down by 1.17%, Utilities down by 1.05% and Industrials down by 1.00% were the top losing indices on BSE.
The top gainers on the Sensex were TCS up by 4.79%, Tech Mahindra up by 3.29%, HCL Technologies up by 1.85%, Infosys up by 1.76% and Bajaj Finserv up by 1.25%. On the flip side, Indusind Bank down by 1.99%, Ultratech Cement down by 1.88%, Sun Pharma down by 1.81%, NTPC down by 1.62% and SBI down by 1.15% were the top losers.
Meanwhile, Financial Services Secretary M Nagaraju has said that the government would soon launch a new credit guarantee scheme for the Micro, Small and Medium Enterprise (MSME) sector covering loans up to Rs 100 crore. He said the scheme is expected to be placed before the Union Cabinet soon for its approval. MSME sector employs 50 million people.
He stated that MSMEs exports have witnessed a remarkable rise, increasing from Rs 3.95 lakh crore in 2020-21 to Rs 12.39 lakh crore in 2024-25, underscoring their critical role in boosting India's economy and strengthening global trade. The MSME sector in India has consistently demonstrated remarkable resilience and adaptability, significantly contributing to the nation's GDP over the years. The Gross Value Added (GVA) by MSMEs in India's GDP was 29.7 per cent in 2017-18, rising to 30.1 per cent in 2022-23. To promote entrepreneurship in rural India, he said the government is very keen to lend more to rural areas through its various schemes. As the country surges ahead, he said there is need to focus on four things, quality, linkages for exports, capacity building, and support to achieve the vision of Vikshit Bharat.
In Budget 2024-25, the Finance Minister Nirmala Sitharaman had announced that for facilitating term loans to MSMEs for purchase of machinery and equipment without collateral or third-party guarantee, a credit guarantee scheme will be introduced. The scheme will operate on pooling of credit risks of such MSMEs. A separately constituted self-financing guarantee fund will provide, to each applicant, guarantee cover up to Rs 100 crore, while the loan amount may be larger. She had said the borrower will have to provide an upfront guarantee fee and an annual guarantee fee on the reducing loan balance.
The CNX Nifty is currently trading at 23542.95, up by 16.45 points or 0.07% after trading in a range of 23344.35 and 23596.00. There were 18 stocks advancing against 32 stocks declining on the index.
The top gainers on Nifty were TCS up by 4.85%, Tech Mahindra up by 3.37%, Wipro up by 2.96%, HCL Technologies up by 1.87% and Infosys up by 1.73%. On the flip side, Shriram Finance down by 3.26%, Indusind Bank down by 2.03%, Adani Enterprises down by 2.00%, Sun Pharma down by 1.92% and Ultratech Cement down by 1.88% were the top losers.
Asian markets were trading mostly in red; Hang Seng declined 109.35 points or 0.57% to 19,131.54, Shanghai Composite weakened 17.43 points or 0.54% to 3,193.96, Straits Times fell 71.7 points or 1.86% to 3,790.90, KOSPI dropped 0.36 points or 0.01% to 2,521.54 and Nikkei 225 slipped 338.01 points or 0.85% to 39,267.08. However, Taiwan Weighted added 35.04 points or 0.15% to 23,116.17 and Jakarta Composite gained 39.7 points or 0.56% to 7,104.29.
