Markets trade in fine-fettle in early deals on firm global cues

Indian equity benchmarks made gap-up opening on Thursday tracking firm cues from global peers. markets are trading in fine-fettle with gains of around a percent in early deals on account of buying in heavy buying in Realty, Metal and Consumer Durables stocks. Traders took note of report that in order to bring more discipline, transparency, and accountability into the corporate insolvency process, resolution professionals (RPs) will be required to inform the adjudicating authority about avoidance transactions of a corporate debtor, according to the amended Insolvency and Bankruptcy Board of India (IBBI) Regulations, 2016. Market participants overlooked report that increasing commodity prices forced the government’s crude oil import bill to swell by a massive 190.6% on-year basis in the first quarter to reach $24.7 billion. India’s crude oil import value during the quarter stood at 51 million tonne, up 14.7% from the previous year.

Asian markets are trading higher following the broadly positive cues overnight from Wall Street, led by a strong rebound in energy stocks and renewed optimism about economic growth. However, the upside is capped as traders remained cautious amid record infections of the highly contagious coronavirus delta variant in several markets in the region and across the world. The Japanese stock market is closed for a long weekend on Thursday and Friday for public holidays.

Back home, real estate industry stocks were in focus as Durga Shanker Mishra, Secretary, Ministry of Housing and Urban Affairs said the size of real estate sector is expected reach $1 trillion by 2030 from $200 billion at present. In scrip specific development, Havells India jumped after it reported nearly four-fold jump in its quarterly consolidated net profit.

The BSE Sensex is currently trading at 52676.25, up by 477.74 points or 0.92% after trading in a range of 52471.23 and 52682.13. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.87%, while Small cap index was up by 1.29%.

The top gaining sectoral indices on the BSE were Realty up by 2.66%, Metal up by 1.96%, Consumer Durables up by 1.94%, Bankex up by 1.30%, Basic Materials up by 1.17%, while Power down by 0.81%, Utilities down by 0.31% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.48%, Titan Company up by 2.33%, Tata Steel up by 1.81%, ICICI Bank up by 1.66% and Hindustan Unilever up by 1.56%. On the flip side, Asian Paints down by 1.08%, Power Grid Corp down by 0.95%, HCL Technologies down by 0.13% and Dr. Reddy's Lab down by 0.12% were the top losers.

Meanwhile, seeking to enhance transparency in insolvency process, Insolvency and Bankruptcy Board of India (IBBI) has amended regulations for corporate insolvency proceedings wherein a resolution professional will be required to provide details about his or her opinion about avoidance transactions pertaining to a corporate debtor. IBBI has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations.

The amendments to the regulations are aimed at enhancing the discipline, transparency, and accountability in corporate insolvency proceedings. A resolution professional is duty-bound to find out if a Corporate Debtor (CD) has been subject to avoidance transactions, namely, preferential transactions, undervalued transactions, extortionate credit transactions, fraudulent trading and wrongful trading, and file applications with the adjudicating authority seeking appropriate relief. This not only claws back the value lost in such transactions increasing the possibility of reorganisation of the CD through a resolution plan, but also disincentivises such transactions preventing stress to the CD.

For effective monitoring, the amendment requires the RP to file Form CIRP 8 on the electronic platform of the Board, intimating details of his opinion and determination in respect of avoidance transactions. The IBBI has put out the format of form CIRP 8 and it needs to be filed in respect of every CIRP ongoing or commencing on or after July 14. With the amended regulations, an insolvency professional conducting CIRP will also have to disclose all former names and registered office address(es) so changed in the two years preceding the commencement of insolvency along with the current name and registered office address of the CD, in all its communications and records.

The CNX Nifty is currently trading at 15765.65, up by 133.55 points or 0.85% after trading in a range of 15726.40 and 15770.85. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 3.28%, Hindalco up by 2.52%, JSW Steel up by 2.51%, Titan Company up by 2.26% and Tata Steel up by 1.84%. On the flip side, Asian Paints down by 1.13%, Hero MotoCorp down by 0.95%, Power Grid Corp down by 0.93%, Cipla down by 0.76% and Eicher Motors down by 0.52% were the top losers.

Asian markets were trading in green; Straits Times jumped 38.82 points or 1.24% to 3,157.82, Hang Seng surged 481.81 points or 1.77% to 27,706.39, Taiwan Weighted gained 83.77 points or 0.48% to 17,542.56, KOSPI added 35.92 points or 1.12% to 3,251.83, Jakarta Composite increased 76.56 points or 1.27% to 6,106.54 and Shanghai Composite was up by 11.64 points or 0.33% to 3,574.30.