Sensex, Nifty volatile; Welspun, Jubilant Life most active

Moneycontrol Bureau12:30 pm RBI: The Reserve Bank of India (RBI) has issued a clarification with respect to norms of its Scheme for Sustainable Structuring of Stressed Assets (S4A), which allows bankers to restructure debt of companies in default. Sources have CNBC-TV18 that banks will now be allowed to waive accrued penal interest according to their own policy. This interest need not necessarily include aggregate bank exposure. Penal interest is the higher interest rate charged by banks once an account becomes a non-performing asset. These norms will be applicable to all entities excluding loans to projects that are still under implementation. In an earlier notification, RBI had said that S4A norms will be applicable on entities having Rs 500 crore plus debt.Don't miss: Deutsche Bank downgrades Axis Bank, warns stress may remain high

The market is volatile as the Sensex is up 50.15 points or 0.2 percent at 28110.09 and the Nifty is up 18.00 points or 0.2 percent at 8668.30. About 1415 shares have advanced, 960 shares declined, and 171 shares are unchanged.

ITC, Axis Bank, Cipla, BHEL and Dr Reddy's Labs are top gainers while Adani Ports, Wipro, Infosys, TCS and NTPC are losers in the Sensex. Welspun, Jubilant Life are most active shares.

Oil prices edged down again in Asiana day after suffering hefty losses in response to data showing a surprise jump in US stockpiles, while hopes for a deal to limit output were dealt a blow.

The US energy department said that inventories soared 2.5 million barrels last week, confounding forecasts for a fall and fanning worries about a global supply glut.