By earn 
Morning Alert..
*RBI’s risk weighting hike: Mutual fund funding to NBFCs continues to grow*
The funding support from asset management companies to non-banking financial companies (NBFCs) has grown over the six months ending May 2024, following the Reserve Bank of India’s (RBI’s) hike in risk weights on bank loans to NBFCs in November 2023. According to CareEdge Ratings data, total debt funds deployed in NBFCs via commercial paper and corporate debt rose from Rs 1.6 trillion at the end of October 2023 to about Rs 2.1 trillion by the end of May 2024. Debt exposure to NBFCs, including commercial papers and corporate debt, rose by 22 per cent year-on-year (Y-o-Y) to Rs 2.09 trillion. This exposure has remained above the Rs 2 trillion mark for the second consecutive month. Mutual funds’ (MFs’) exposure through investments in commercial papers, a short-term money market instrument of NBFCs, stood at Rs 1.15 trillion in May, a level last witnessed in May 2019 — five years ago. Commercial paper exposure has consistently remained above the Rs 1 trillion mark for six consecutive months, according to the rating agency.
*Banks’ deposit growth dips to 10.6%; credit growth at 13.9% as on June 28*
Deposit growth of commercial banks further slowed down to 10.64 per cent for the fortnight ending June 28, latest data released by the Reserve Bank of India (RBI) showed. Credit growth also declined during the period. According to the data, scheduled commercial banks’ credit rose by 13.88 per cent year-on-year (Y-o-Y) to Rs 163.8 trillion as on June 28. The deposit base of banks expanded by 10.64 per cent Y-o-Y to Rs 211.95 trillion. The growth figures exclude the impact of the merger of HDFC with HDFC Bank, which came into effect on July 1, 2023. Deposit growth for the previous fortnight ending on June 14 was 12.1 per cent while credit growth was 15.6 per cent during the period. In a recent meeting with bank chief executives, RBI governor Shaktikanta Das had flagged the issue of persisting gap between credit and deposit growth.
* Global market action*
Dow Jones – Up by 0.17% or 42.50 points
FTSE – Up by 0.36% or 29.83 points
CAC – Up by 0.71% or 53.58 points
DAX – Up by 0.69% or 127.34 points
Gift Nifty – Up by 0.17% or 42.50 points
*FII/DII activities*
FII – Sold 1137.01 Cr worth of shares
DII – Bought 1676.47 Cr worth of shares.
*Stocks with high delivery percentage*
Bayer CropScience Ltd – 97.1%
Sapphire Foods India Ltd – 93.1%
Carborundum Universal Ltd – 92.4%
Ratnamani Metals & Tubes Ltd – 88.8%
CRISIL Ltd – 88.5%
*Primary market activities*
IPOs opening today
Aelea Commodities Ltd (BSE SME) – Issue size 51Cr
Sati Poly Plast Ltd (NSE SME) – Issue size 17.36Cr
Prizor Viztech Ltd (NSE SME) – Issue size 25.15Cr
Three M Paper Boards Ltd (BSE SME) – Issue size 39.83Cr
Listing today
Effwa Infra & Research Ltd (NSE SME) – Subscribed 313.65x
Ganesh Green Bharat Ltd (NSE SME) – Subscribed 229.92x
