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Bourses continue to trade lower in late trade
May-09-2025

Bourses continued to trade lower in late afternoon session as the escalating geopolitical tensions between India and Pakistan weighed on investor sentiments. The Indo-Pak tensions escalated after Pakistani forces conducted multiple drone and munition attacks along India’s western border. Investors overlooked report that Reserve Bank of India (RBI) relaxed norms for investments by foreign portfolio investors (FPIs) in corporate debt securities through the general route by withdrawing certain requirements to comply with the short-term investment limit and the concentration limit. The withdrawal was with a view to providing greater ease of investment to FPIs.

On the global front, Asian equity markets are trading mixed as investors parsed China's April trade data and looked ahead to crucial Sino-U.S. talks scheduled for this weekend. European equity markets were trading higher after the Bank of England reduced its interest rate by 25 basis point, as policymakers judged that higher trade tariffs warrant such action amid slowing inflation.

The BSE Sensex is currently trading at 79355.61, down by 979.20 points or 1.22% after trading in a range of 78968.34 and 80032.93. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slumped 0.54%, while Small cap index was down by 0.97%.

The few gaining sectoral indices on the BSE were Capital Goods up by 1.16%, Consumer Durables up by 0.79% and Industrials up by 0.56%, while Realty down by 2.32%, Utilities down by 2.05%, Power down by 1.62%, Bankex down by 1.16% and Energy down by 1.02% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 3.72%, Tata Motors up by 3.61%, Larsen & Toubro up by 3.12%, SBI up by 0.84% and Asian Paints up by 0.10%. On the flip side, ICICI Bank down by 3.06%, Power Grid Corporation Of India down by 2.96%, Ultratech Cement down by 2.53%, Adani Ports down by 2.41% and Bajaj Finance down by 2.19% were the top losers.

Meanwhile, with an aim to address the financing needs of innovation-driven startups, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry has expanded the Credit Guarantee Scheme for Startups (CGSS) which increases the ceiling on guarantee cover per borrower under the Scheme from Rs 10 crore to Rs 20 crore. The extent of guarantee cover provided has also been increased to 85% of the amount in default for loan amount up to Rs 10 crore and 75% of the amount in default for loan amount exceeding Rs 10 crore.

Further, the Annual Guarantee Fee (AGF) for startups in 27 Champion Sectors has been reduced to 1% p.a. from 2% p.a. The Champion Sectors have been identified by the Government under ‘Make in India’ to provide a thrust to India’s manufacturing and service capabilities. The reduction in AGF for Champion Sectors will make funding more attractive for the identified sectors and boost innovation in domestic manufacturing and self-reliance.

As a result of the increased guarantee support and coverage, the number of financial institutions coming forward to provide credit support to startups shall increase, thereby increasing overall fund flow for startups. The expanded Scheme will further reduce the perceived risks associated with lending to startups in established financial institutions, enabling greater financial flow and runway for startups to undertake research and development (R&D), experimentation, and create cutting-edge innovation and technologies.

Several operational reforms and other enabling measures identified through consultations with the startup ecosystem have also been included in the expanded CGSS to make the Scheme attractive for lenders and startups seeking funding support. The expansions and modifications are expected to give thrust to the Scheme and enable a wider range of startups to benefit to propel the country towards becoming a Viksit Bharat.

The CNX Nifty is currently trading at 23982.60, down by 291.20 points or 1.20% after trading in a range of 23935.75 and 24164.25. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 3.57%, Tata Motors up by 3.51%, Larsen & Toubro up by 3.16%, Bharat Electronics up by 2.46% and Hero MotoCorp up by 0.98%. On the flip side, ICICI Bank down by 3.16%, Power Grid Corporation of India down by 3.13%, Adani Ports down by 2.63%, Shriram Finance down by 2.56% and Ultratech Cement down by 2.54% were the top losers.

Asian markets are trading mixed; Hang Seng advanced 91.82 points or 0.4% to 22,867.74, Nikkei 225 surged 574.7 points or 1.53% to 37,503.33, Straits Times rose 23.08 points or 0.6% to 3,871.30 and Taiwan Weighted added 371.64 points or 1.78% to 20,915.04, while Jakarta Composite plunged 3.99 points or 0.06% to 6,823.76, Shanghai Composite weakened 10 points or 0.3% to 3,342.00 and KOSPI dropped 2.21 points or 0.09% to 2,577.27.

European markets were trading higher; UK’s FTSE 100 increased 36.22 points or 0.42% to 8,567.83, France’s CAC rose 41.62 points or 0.54% to 7,736.06 and Germany’s DAX gained 118.44 points or 0.5% to 23,471.13.
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