After opening the day in green, share markets in India continued the momentum throughout the day and ended the day in green. Sectoral indices were mixed, with stocks in the IT sector and stocks in the banking sector leading the gains.

At the closing bell, the BSE Sensex stood higher by 293 points (up 0.8%) and the NSE Nifty closed up by 97 points (up 0.9%). The BSE Mid Cap index ended the day up 0.5%, while the BSE Small Cap index ended the day up by 0.6%.

Asian stock markets finished in green. As of the most recent closing prices, the Hang Seng was up by 0.2% and the Shanghai Composite was up by 1.4%. The Nikkei 225 was flat%. Meanwhile, European markets too were trading in green. The FTSE 100 was up by 0.5%, The DAX, was up by 0.1% while the CAC 40 was up by 0.2%.

The rupee was trading at Rs 67.15 against the US$ in the afternoon session. Oil prices were trading at US$ 70.44 at the time of writing.

In news from stocks in the banking sector. State Bank of India (SBI) has decided to take a tough stand against big loan defaulters.

Rajnish Kumar, the SBI chairman said that banks will force insolvent companies into liquidation if potential bidders try to suppress prices under the bankruptcy process.

The Reserve Bank of India (RBI) was empowered through an ordinance in May last year to direct banks to initiate insolvency proceedings against borrowers for resolution of stressed assets. The regulator shortlisted 12 companies with a total debt of over Rs 2 trillion in June for bankruptcy proceedings, about 25% of all non-performing bank loans. They included Essar Steel, Bhushan Steel, Lanco Infratech, ABG Shipyard, Bhushan Power and Alok Industries.

The RBI then issued another list of 28 defaulters for debt resolution.

The current law allows a maximum 270 days for resolution – an initial 180 days and 90 days of extra time on top of that. The resolution process for these debt-ridden companies are at various stages, with bids having been submitted for some of them.

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