Morning Alert *Domestic consumption demand, Govt capex lent s | Equity99

Morning Alert

*Domestic consumption demand, Govt capex lent support to India Inc's credit profile: ICRA*
Rating agency ICRA on Monday said domestic consumption demand, government's infrastructure spending and healthy balance sheets lent support to India Inc's credit profile in the 2023-24 fiscal, even though rise in borrowing cost, sluggish exports and certain global events posed challenges. In the just-concluded fiscal year, ICRA upgraded two entities for every entity downgraded, in continuation of the upgrade momentum that had been set in motion in FY22. Aviation, hospitality, auto and auto components, and banks were the few sectors in 2023-24 where the rating upgrades were induced mostly by industry tailwinds. The domestic rating agency said India Inc bore direct and the indirect effects of multiple challenges in FY24, including inflation, rise in borrowing costs, sub-par monsoon, supply-effects of the continued war between Russia and Ukraine, start of another conflict between Israel and Palestine, the Red Sea crisis, and sluggish exports. Yet, these did not feel heavier as domestic consumption demand across several sectors, government spending on public infrastructure, and healthy balance sheets lent support to the credit profiles of entities, ICRA said.

*Credit quality outlook of India Inc positive in first half of FY25: Crisil Ratings*
Crisil Ratings on Monday said the credit quality outlook for Indian corporates remains positive for the April-September period of the 2024-25 fiscal year with upgrades continuing to outpace downgrades. In the last fiscal year, Crisil gave 409 rating upgrades and 228 downgrades. Some export-linked sectors, such as textile and seafood, saw a higher downgrade rate due to subdued global demand or high-cost inventory that impacted profitability. "India Inc's credit quality outlook is positive for the first half of fiscal 2025 with upgrades expected to outnumber downgrades. Multiplier effect of government capex will continue to drive infrastructure and linked sectors. Healthy balance sheets will continue to support the credit quality outlook, with capex funding seen prudent," Crisil Rating said. It said the outstanding bank credit is expected to cross Rs 200 lakh crore by March 2025, from Rs 172 lakh crore a year ago, even though there would be moderation in the rate of credit growth. The Indian economy with a GDP growth of 6.8 per cent is expected to remain the fastest-growing large economy in the current fiscal. The growth will, however, moderate from 7.6 per cent expected in 2023-24 as high interest rates and lower fiscal impulse to growth will temper demand, according to Crisil.

*Global market action*
Dow Jones – Down by 0.60% or 240.52 points
Gift Nifty – Down by 0.24% or 56.00 points

*FII/DII activities*
FII – Sold 522.30 Cr worth of shares
DII – Bought 1,208.42 Cr worth of shares.

*Stocks with high delivery percentage*
Sun Pharma – 86.10 %
Tata Consumer Products– 83.97 %
Pidilite Industries– 75.65 %
Chola Investment– 74.08 %
PI Industries – 73.99%


*Primary market activities*

Listing today
Naman In-Store (India) (NSE SME) – Subscribed 309.03 times

*Commodities updates*
Gold – Rs 68,262/10gm, Silver – Rs 75,487/kg, Brcrude – Rs 7,027/barrel, Copper – Rs 766/kg.

*Corporate News*

Aditya Birla Fashion and Retail eyeing to demerge its Madura Fashion & Lifestyle business into separate listed entity

Elpro International has acquired 28,790 equity shares of Multi Commodity Exchange for Rs 10 crore

Hero Motocorp sells 56 lakh units of motorcycles and scooters in FY’24

Sancode Technologies acquires additional 1% shareholding in existing Joint Venture Company “Sanfin Technologies”

Veerhealth Care gets order worth Rs 57.36 lakh from Apollo Healthco