Indian equity benchmarks remained flat during morning trading as traders stayed cautious ahead of the GST Council meeting scheduled for later in the day. The meeting is expected to discuss several key issues, including taxation on insurance premiums, recommendations from the GoM on rate rationalization, and a status report on online gaming. However, some support came from RBI data, showing that India’s forex reserves surged by $2.299 billion, reaching a new high of $683.987 billion for the week ending on August 30. In the previous week, reserves had jumped by $7.023 billion, taking the total to $681.688 billion.

Additionally, Commerce and Industry Minister Piyush Goyal suggested establishing a working group on tourism between India and Mediterranean nations, highlighting the significant potential for mutual cooperation. He noted that India presents a large market for Mediterranean goods and services, driven by the deep cultural and historical ties shared between the regions.

Sensex Declines Slightly; Mid-Cap and Small-Cap Indices Under Pressure

The BSE Sensex is currently trading at 81,158.41, down 25.52 points or 0.03%, fluctuating between 80,895.05 and 81,245.57. Out of the 30 stocks, 11 advanced while 19 declined. The broader indices were in red as the BSE Mid-Cap Index fell by 0.70% and the Small-Cap Index dropped by 1.07%. FMCG was the only sectoral index to gain, up 0.47%, while PSU, Oil & Gas, Metals, Energy, and Telecom were the top losers.

The top gainers on the Sensex included Hindustan Unilever, up 1.01%, ITC, up 0.84%, Kotak Mahindra Bank, up 0.57%, ICICI Bank, up 0.53%, and Asian Paints, up 0.37%. On the downside, Tata Motors fell 1.38%, Tata Steel declined 1.26%, Adani Ports & SEZ slipped 1.03%, and NTPC and Power Grid Corporation dropped 0.82%.

Education Loans to Overseas Courses Expected to See Rapid Growth: CRISIL Report

According to a recent report by CRISIL Ratings, education loans, particularly for overseas courses, will remain one of the fastest-growing segments for non-banking financial companies (NBFCs), driven by rising demand for higher education abroad. NBFCs’ education loan assets under management (AUM) are projected to grow by 40-45%, surpassing ₹60,000 crore this fiscal year.

CRISIL noted that after a robust growth of over 80% and 70% in fiscals 2023 and 2024, respectively, NBFCs’ education loan AUM reached ₹43,000 crore as of March 31, 2024. On the asset quality front, the report mentioned that metrics should remain stable despite concerns related to specific countries. 

Ajit Velonie, Senior Director at CRISIL Ratings, remarked, “The number of Indian students studying abroad has doubled in the last five years to approximately 1.34 million, but only a tenth of these are funded by NBFCs. This indicates a significant growth potential for education loan providers.” He also emphasized that rising tuition fees, inflation, and living costs are expected to further drive demand in this segment.