Bourses trade in green in late afternoon session

Indian equity markets continued to trade with gains in late afternoon session. However, gains were limited amid ongoing monetary policy committee (MPC) meeting. The Reserve Bank of India (RBI) is widely expected to keep rates unchanged for the seventh consecutive meeting. Meanwhile, the government has broadly met the tax collection target of over Rs 34.37 trillion for fiscal year 2023-24 (FY24) on the back of robust economic activity and improved compliance. On the global front, all Asian markets are trading lower as strong U.S. data dented rate cut hopes and oil extended gains amid rising tension in the Middle East, clouding the inflation outlook. European markets were trading mostly in green as investors awaited Eurozone inflation data and Fed Chair Jerome Powell's comments later in the day for further clues on the timing and speed of interest rate cuts.

The BSE Sensex is currently trading at 74025.60, up by 121.69 points or 0.16% after trading in a range of 73540.27 and 74151.21. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.60%, while Small cap index was up by 1.16%.

The top gaining sectoral indices on the BSE were Utilities up by 1.32%, TECK up by 1.17%, IT up by 1.16%, Power up by 1.09% and PSU was up by 1.02%, while Realty down by 2.17%, Auto down by 0.16% and FMCG was down by 0.12% were the few losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.05%, Bharti Airtel up by 1.95%, Axis Bank up by 1.57%, Tech Mahindra up by 1.46% and Bajaj Finance up by 1.27%. On the flip side, Nestle down by 2.54%, Kotak Mahindra Bank down by 1.23%, Bajaj Finserv down by 0.97%, Indusind Bank down by 0.83% and Maruti Suzuki down by 0.81% were the top losers.

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has showed that the resolution of cases under the Corporate Insolvency Resolution Process (CIRP) increased notably, with the percentage of cases closed through the approval of resolution plans reaching 29% in Q3 FY24 as against 17% in Q3 FY23. 

As per the report, the uptick in resolutions is believed to be linked to several structural enhancements initiated by the Insolvency and Bankruptcy Board of India (IBBI), such as the addition of adjudicating members and efforts to streamline the process through continuous engagement with stakeholders; however, the sustainability of such reforms still needs to be tested.

Meanwhile, Corporate Insolvency Resolution Process is a recovery mechanism for creditors. If a corporate becomes insolvent, a financial creditor, an operational creditor, or the corporate itself may initiate CIRP. After making an application then CIRP is initiated.

The CNX Nifty is currently trading at 22473.45, up by 20.15 points or 0.09% after trading in a range of 22346.50 and 22521.10. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 2.70%, TCS up by 2.18%, Divi's Lab up by 2.04%, Bharti Airtel up by 1.92% and Axis Bank up by 1.83%. On the flip side, Nestle down by 2.70%, HDFC Life Insurance down by 1.56%, Bajaj Auto down by 1.49%, Kotak Mahindra Bank down by 1.32% and Dr. Reddy's Lab down by 1.16% were the top losers.

All Asian markets were trading lower; Nikkei 225 slipped 387.06 points or 0.98% to 39,451.85, Hang Seng declined 206.42 points or 1.23% to 16,725.10, Taiwan Weighted lost 128.97 points or 0.63% to 20,337.60, Jakarta Composite plunged 65.71 points or 0.92% to 7,171.27, KOSPI dropped 46.19 points or 1.71% to 2,706.97, Straits Times fell 23.97 points or 0.74% to 3,223.75 and Shanghai Composite was down by 5.66 points or 0.18% to 3,069.30.

European markets were trading mostly in green; France’s CAC rose 10.15 points or 0.12% to 8,140.20 and Germany’s DAX was up by 48.8 points or 0.27% to 18,331.93. On the flip side, UK’s FTSE 100 was down by 43.02 points or 0.54% to 7,892.07.