Indian share markets finished the volatile trading session in the green zone with Midcaps and Smallcaps indices leading the rally. At the closing bell, the BSE Sensex closed higher by 86 points, whereas the NSE Nifty finished higher by 33 points. The S&P BSE Midcap ended up by 0.7% while the S&P BSE Small Cap Index ended up by 1.1%.

Among the BSE sectoral indices, stocks from banking sector & energy sector led the losses. While gains were largely seen in stocks from realty sector and consumer durables sector.

Stock markets in Asia finished mixed as of their recent closing prices. The Hang Seng gained 0.97% while the Shanghai Composite was higher by 0.04%. The Nikkei 225 was even. European markets are mixed today. The CAC 40 is up 0.97% while the DAX gains 0.15%. The FTSE 100 is off 0.17%.

The rupee was trading at Rs 64.64 against the US$ in the afternoon session. Oil prices were trading at US$ 51.24 at the time of writing.

In news from Indian bank stocks, Yes Bank Ltd share price fell 3.8% after the bank reported sharp rise in its provisioning and bad loans. Yes Bank reported a doubling of gross non-performing assets (NPAs) to Rs 20.18 billion in the March quarter, as it had to set aside an additional Rs 2.28 billion to cover potential loan losses. Yes Bank’s gross NPAs were at 1.52% at the end of the March quarter and net NPAs were at 0.81%.

Meanwhile, RBI has brought down the net NPA levels required to include the bank under PCA framework to a level of 6% now as against 10% earlier; thereby mandating the banks to increase the provision coverage on the NPAs for remaining outside the PCA framework.

According to an article in The Economic Times, based on the revised PCA framework, a total of 16 PSBs out of 21 (excluding SBI associates) and two out of 16 private banks will require taking mandatory corrective actions such as raising capital levels, restricting the dividend payments, branch expansions or face restrictions on management compensation to come out of the PCA framework.