Bourses trim gains to come off day’s high

Key Indian benchmarks trimmed most of their gains in afternoon session to come off their intraday high points, as PSU, Oil & Gas, Banking and Metal shares witnessed selling. Investors have maintained cautious approach ahead of July-September quarter GDP data to be released later in the day. Some concern also came in with a private report stating that India’s Gross Domestic Product (GDP) growth is expected to slow down to 7.4% in the July-September quarter of the current financial year, down by 0.8 percentage points from the previous quarter. However, the trade remained in positive terrain, as some optimism remained among the traders with report that the Reserve Bank of India (RBI) on November 29 relaxed rules for non-banking financial companies (NBFCs) to sell or securitise their loan books, in a bid to ease persistent stress in the sector.

On the global front, Asian markets were trading mostly in green, with investors once more looking with hope towards US President Donald Trump’s meeting with his Chinese counterpart XI Jinping at the weekend’s G20 summit in Argentina. Back home, the BSE Sensex is currently trading at 36223.37, up by 52.96 points or 0.15% after trading in a range of 36199.31 and 36389.22. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.23%, while Small cap index was up by 0.48%.

The gaining sectoral indices on the BSE were Realty up by 2.03%, IT up by 1.14%, TECK up by 1.00%, Healthcare up by 0.92% and Auto up by 0.75%, while PSU down by 0.75%, Oil & Gas down by 0.74%, Bankex down by 0.51%, Metal down by 0.41% and Capital Goods down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 4.80%, Wipro up by 2.44%, Mahindra & Mahindra up by 2.32%, Maruti Suzuki up by 1.67% and Infosys up by 1.36%. On the flip side, Tata Motors down by 2.28%, Tata Motors - DVR down by 2.08%, NTPC down by 1.62%, ICICI Bank down by 1.52% and ONGC down by 1.10% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has said that Net Stable Funding Ratio (NSFR) guidelines, which require banks to maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities, will come into effect from April 1, 2020. NSFR is defined as the amount of available stable funding (ASF) relative to the amount of required stable funding (RSF).

In the backdrop of the global financial crisis that began in 2007, the Basel Committee on Banking Supervision (BCBS) proposed certain reforms to strengthen global capital and liquidity regulations, with the objective of promoting a more resilient banking sector. The norms on NSFR are in line with global norms prescribed by the Basel Committee.

The NSFR would be applicable for Indian banks at the solo (stand-alone) as well as consolidated level. For foreign banks operating as branches in India, the framework would be applicable on stand-alone basis (for Indian operations only). As per the guidelines, the RBI may require an individual bank to adopt more stringent standards to reflect its funding risk profile and its compliance with the 'sound principles'

The CNX Nifty is currently trading at 10871.85, up by 13.15 points or 0.12% after trading in a range of 10864.45 and 10922.45. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 4.92%, Wipro up by 2.75%, Mahindra & Mahindra up by 2.24%, Indiabulls Housing Finance up by 2.05% and Maruti Suzuki up by 1.69%. On the flip side, HPCL down by 2.37%, Tata Motors down by 2.23%, Bharti Infratel down by 1.86%, NTPC down by 1.58% and ICICI Bank down by 1.49% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 increased 88.46 points or 0.4% to 22,351.06, Straits Times rose 16.36 points or 0.52% to 3,125.80, Taiwan Weighted was up by 2.67 points or 0.03% to 9,888.03, Hang Seng added 129.16 points or 0.49% to 26,580.19 and Shanghai Composite surged 13.18 points or 0.51% to 2,580.62.

On the flip side, Jakarta Composite decreased 24.33 points or 0.4% to 6,082.84 and KOSPI shed 17.24 points or 0.82% to 2,096.86.