Key gauges continue to trade lower in morning deals

Indian equity benchmarks continued to trade lower in morning deals amid the impending expiry of the weekly options of Nifty 50 contracts and the RBI's interest-rate decision on Friday. Some concern also came as exchange data showed Foreign institutional investors (FIIs) offloaded equities worth Rs 1,682.83 crore in the capital markets on a net basis on Wednesday. Traders overlooked the State Bank of India’s (SBI) report stated that the government’s market borrowing plans for the financial year 2025-26 (FY26) appear well-placed to support fiscal policy while complementing monetary policy. For FY26, the report noted that the government has budgeted gross market borrowing through dated securities at Rs 14.8 lakh crore, while repayments are estimated at Rs 3.3 lakh crore. On the global front, Asian markets are trading mostly in green amid easing trade war fears and falling oil prices on demand concerns and data showing a large build in U.S. crude and gasoline stockpiles.

The BSE Sensex is currently trading at 78119.73, down by 151.55 points or 0.19% after trading in a range of 78064.46 and 78551.66. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.10%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.32%, IT up by 0.32%, Utilities up by 0.26%, Energy up by 0.22% and Power up by 0.14%, while Consumer Durables down by 0.80%, Realty down by 0.65%, Telecom down by 0.49%, Metal down by 0.38% and FMCG down by 0.38% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 0.82%, Bajaj Finance up by 0.77%, Infosys up by 0.72%, Zomato up by 0.61% and ICICI Bank up by 0.36%. On the flip side, Titan Company down by 1.32%, Bharti Airtel down by 1.30%, Ultratech Cement down by 1.26%, Tata Steel down by 1.23% and Mahindra & Mahindra down by 1.16% were the top losers.

Meanwhile, the Insolvency and Bankruptcy Board of India (IBBI) has amended regulations on liquidation process to ensure better fund management, simplify the auction procedure, and improving reporting requirements. These measures will improve transparency, efficiency, and accountability in the insolvency framework. According to IBBI release, the amendments, notified on January 28, 2025, with immediate effect, modify the Insolvency and Bankruptcy Board of India (Liquidation Process) regulations, 2016, and the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) rules, 2017.

Under the revised framework, the prospective bidders in the liquidation auction will now have more time -- 30 days to participate in the auction process than 14 days earlier, facilitating wider participation. Further, the liquidator is mandated to verify the eligibility of the highest bidder within three days of the auction and consult with the Stakeholder Consultation Committee (SCC) before finalising the auction. If the highest bidder is found ineligible, the next highest eligible bidder may be considered. Additionally, the auction notice must specify that the Earnest Money Deposit (EMD) of the successful bidder will be forfeited if found ineligible.

Maintaining the Corporate Liquidation Account and Corporate Voluntary Liquidation Account with scheduled banks for more efficient claim processing, the board has strengthened fund management mechanisms. With the revised framework the voluntary liquidation processes can be completed even though the uncalled capital exists, as existing safeguards are considered sufficient to protect creditors.

The board said ‘Regulations now require detailed disclosure of tax deductions by the liquidator before depositing unclaimed dividends and undistributed proceeds into the corporate liquidation account or corporate voluntary liquidation account’. Additionally, Forms have been updated to include fields for applicable provisions, tax deduction confirmation, reasons for unclaimed dividends or undistributed proceeds. The amendments also introduce a late fee of Rs 500 per form per month for delayed filings on the IBBI portal, ensuring timely compliance by insolvency professionals.

The CNX Nifty is currently trading at 23632.90, down by 63.40 points or 0.27% after trading in a range of 23618.55 and 23773.55. There were 18 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were BPCL up by 1.93%, Cipla up by 1.29%, Hero MotoCorp up by 1.23%, Dr. Reddy's Lab up by 1.05% and HDFC Life Insurance up by 0.96%. On the flip side, Trent down by 1.98%, Titan Company down by 1.39%, Bharti Airtel down by 1.37%, Bharat Electronics down by 1.30% and Tata Steel down by 1.28% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 195.3 points or 0.5% to 39,026.78, Taiwan Weighted added 117.34 points or 0.5% to 23,278.92, Hang Seng advanced 58.85 points or 0.28% to 20,655.94, KOSPI increased 20.52 points or 0.81% to 2,529.79, Straits Times rose 17.51 points or 0.46% to 3,832.88 and Shanghai Composite strengthened 24.63 points or 0.76% to 3,254.12.

On the flip side, Jakarta Composite plunged 126.54 points or 1.83% to 6,897.69.