Key gauges manage to trade in green in morning deals

Indian equity benchmarks erased some of their gains but managed to trade in green in morning deals, driven by buying in TECK and IT stocks and fresh foreign fund inflows. Foreign Institutional Investors (FIIs) turned buyers on Tuesday, as they bought equities worth Rs 1,440.66 crore, according to exchange data. Traders took some support with Commerce and Industry Minister Piyush Goyal’s statement that India and the US are in continuous dialogue on the proposed bilateral trade agreement, and all possibilities are there to meet the November deadline for concluding the talks. Separately, the Reserve Bank of India (RBI) has issued draft 'Reserve Bank of India (Scheduled Commercial Banks & All India Financial Institutions - Asset Classification, Provisioning and Income Recognition) Directions, 2025'. It has proposed to replace the incurred-loss-based provisioning framework with an expected credit loss (ECL) based provisioning to further strengthen credit risk management practices and promote greater comparability across financial institutions. On the global front, Asian markets are trading in red after US stocks sank to their losses. 

The BSE Sensex is currently trading at 82046.24, up by 119.49 points or 0.15% after trading in a range of 81849.98 and 82257.74. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.20%, while Small cap index was down by 0.01%.

The top gaining sectoral indices on the BSE were TECK up by 1.34%, IT up by 1.33%, Consumer Durables up by 0.90%, Oil & Gas up by 0.41% and Telecom up by 0.26%, while Realty down by 1.14%, Capital Goods down by 0.75%, Power down by 0.71%, Utilities down by 0.51% and FMCG down by 0.48% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 4.40%, Infosys up by 2.12%, TCS up by 1.76%, Bharti Airtel up by 1.33% and Tech Mahindra up by 1.29%. On the flip side, Power Grid Corporation down by 1.19%, Hindustan Unilever down by 0.96%, Tata Motors down by 0.95%, Bharat Electronics down by 0.79% and Mahindra & Mahindra down by 0.76% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has issued draft 'Reserve Bank of India (Scheduled Commercial Banks & All India Financial Institutions - Asset Classification, Provisioning and Income Recognition) Directions, 2025'. It has proposed to replace the incurred-loss-based provisioning framework with an expected credit loss (ECL) based provisioning to further strengthen credit risk management practices and promote greater comparability across financial institutions. The proposed guidelines are expected to enhance credit risk management practices and promote better comparability of reported financials across institutions. The draft also aims to align regulatory norms with internationally accepted regulatory and accounting standards. The introduction of staging criteria for asset classification under the ECL approach, while retaining the extant norms for non-performing asset (NPA) classification, is one key element of the proposed framework.

Alignment of the income recognition norms based on the Effective Interest Rate (EIR) method and broad principles on model risk management for implementing ECL models are other objectives behind changing the extant regulations. The RBI said that while the proposed directions are estimated to result in an additional one-time provisioning, the overall impact on the minimum regulatory capital requirements of banks is expected to be minimal, with all banks continuing to meet the requirements comfortably.

The proposed five-year glide path will further facilitate the transition in a non-disruptive manner. Announcing the fourth bi-monthly monetary policy of the fiscal earlier this month, RBI Governor Sanjay Malhotra said the ECL framework of provisioning with prudential floors is proposed to be made applicable to all Scheduled Commercial Banks (excluding Small Finance Banks (SFBs), Payment Banks (PBs), Regional Rural Banks (RRBs) and All India Financial Institutions (AIFIs) with effect from April 1, 2027.

In January 2023, the RBI came out with draft guidelines for the adoption of the expected credit loss approach for credit impairment. Under the ECL norms, banks would be required to classify financial assets (primarily loans, including irrevocable loan commitments, and investments classified as held-to-maturity or available-for-sale) into one of the three categories -- Stage 1, Stage 2, and Stage 3, depending upon the assessed credit losses on them at the time of initial recognition as well as on each subsequent reporting date and make necessary provisions.

The CNX Nifty is currently trading at 25132.15, up by 23.85 points or 0.09% after trading in a range of 25078.00 and 25192.50. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 4.32%, Infosys up by 1.95%, TCS up by 1.76%, Hindalco up by 1.35% and Bharti Airtel up by 1.27%. On the flip side, Bajaj Auto down by 1.27%, Nestle down by 1.27%, Power Grid Corporation down by 1.06%, Mahindra & Mahindra down by 1.03% and Hindustan Unilever down by 1.02% were the top losers.

Asian markets are trading in red; Nikkei 225 slipped 129.88 points or 0.27% to 47,821.00, Taiwan Weighted lost 122.04 points or 0.45% to 27,089.91, Jakarta Composite plunged 39.78 points or 0.49% to 8,129.50, Hang Seng declined 314.77 points or 1.17% to 26,643.00 and Straits Times fell 22.54 points or 0.5% to 4,449.72.