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Service activities decline for 3rd straight month in July due to Lockdown

Service activities decline for 3rd straight month in July due to Lockdown

Wednesday, August 4, 2021

The biggest sector of India's economy, Services, continued to contract for the third month in a row in July due to restrictions imposed by state governments to arrest the spread of the Covid-19 pandemic according to a widely tracked IHS Markit purchasing managers' index (PMI) survey. Business activity, new orders, and employment declined in July, according to a commentary associated with the survey. The latest data also pointed to an intensification of inflationary pressures across the sector, it said. New work intakes also fell for the third month running in July, albeit at a softer pace than in June. In addition to challenging conditions domestically, firms observed a further deterioration in international demand for services. New business from abroad decreased at a sharp pace that was little changed from June. Read more

Bajaj Finance shares falls 5 percent after second wave of lockdown

Bajaj Finance shares falls 5 percent after second wave of lockdown

Monday, June 7, 2021

Shares of Bajaj Finance (BAF) declined 5 percent to Rs 5,681 apiece on the BSE in Monday's intra-day trade after the NBFC issued an update about the effect of the Covid-19 wave on the financials of the firm. The share hit 52 weeks high of Rs 6,009 on June 4, 2021, and 52 weeks low of Rs 2,199 on June 12, 2020. In its mid-quarter update, the firm said B2B and auto finance businesses were most affected due to strict lockdowns in the majority of states. The lender’s business-to-business segment has been hit hard, with most shops and establishments staying shut in May. The second segment most impacted was vehicle loans, the lender said. These businesses delivered 70% of their planned volumes in April 2021 as multiple states started imposing lockdowns from mid-April. Their volumes dropped to 40% in May 2021. Read more

Indian economy is on track to grow 10% in the year that began April 1st

Indian economy is on track to grow 10% in the year that began April 1st

Monday, May 31, 2021

The resilience of the Indian economy will be tested by its ability to overcome a devastating outbreak of Covid-19, although no one is yet doubting its potential to pull off the world’s fastest pace of growth among major economies this year. The economy is on track to grow 10% in the year that began April 1, according to the median of 12 estimates compiled by Bloomberg News. That’s after several economists downgraded their forecasts in recent weeks to factor in local curbs on activity, including in India’s political and commercial hubs. Economists say the relaxation of restrictions across states will determine the strength of the rebound, while the willingness of consumers to spend will also be key. Data likely to be released today(31st May 2021) will probably show gross domestic product grew 1% in the three months ended March, making it the second straight quarter of expansion since India exited a rare recession. Read more

Second wave of Covid-19 will delay earnings recovery of India Inc: Moody's

Second wave of Covid-19 will delay earnings recovery of India Inc: Moody's

Monday, May 17, 2021

The massive second wave of coronavirus seen in India will delay earnings recovery for Indian companies, rating agency Moody's said today(17th May 2021). "The sharp rise in infections will disrupt earnings, recovery recorded by companies over the past six months," it said while adding that prolonged and wider lockdown will have a more severe effect on earnings recovery. However, the rating agency sees a limited impact of second-wave lockdowns on economic activity so far. Moody's further said restrictions on movement and lockdowns in several parts of the country will lead to weaker consumer sentiment and will hit housing and automobile sales. It said the slowdown in the construction sector will make a dent in cement demand in India and also sees transportation-fuel demand to take a hit temporarily. Read more

Banks want RBI to relax NPA norms for MSME sector underlockdown stress

Banks want RBI to relax NPA norms for MSME sector underlockdown stress

Friday, May 7, 2021

Commercial banks have requested the RBI to relax norms on the classification for non-performing loans for micro, medium, and small enterprises (MSMEs) in view of the stress the sector is facing due to lockdowns imposed by different state governments following the second Covid-19 wave. Sources said a request was made to the banking regulator to extend the non-performing asset classification norms for MSME borrowers to 180 days from 90 days now. A sub-standard loan is the first category of NPA. Bankers said the MSME sector was already reeling under pressure and now the second wave will make things extremely difficult for the sector. Read more

India’s double-digit growth forecast in risk

India’s double-digit growth forecast in risk

Monday, April 26, 2021

Fifteen days back, the International Monetary Fund upgraded India’s economic growth forecast to 12.5% -- the quickest rate among major economies. Now, as Covid-19 cases surge the most globally, that bullish view is looking increasingly in doubt. In Delhi, India’s political capital, the streets are mostly empty and the markets nearly deserted with almost all shops closed in response to curbs put in place by the local administration to fight the pandemic. The scene is not so different in Mumbai, the financial hub. Aimed at controlling the COVID-19 spike, the Karnataka government today announced "close down" across the state for 14 days from Tuesday(27th April 2021) night. High-frequency data are already pointing to a deepening contraction in retail activity in the week through April 18 relative to its pre-pandemic January 2020 level, said a Bloomberg Economist. That’s a key risk for an economy where consumption makes up some 60% of gross domestic product.

Karnataka Government announces Close down for 14 days from tomorrow 9 Pm

Karnataka Government announces Close down for 14 days from tomorrow 9 Pm

Monday, April 26, 2021

Karnataka Chief Minister BS Yediyurappa on April 26 announced "close down" across the state for 14 days from Tuesday night from 9 PM aimed at controlling the COVID-19 spike. All essential shops will be functioning from 6 am to 10 am, after which all shops will close. "Only construction, agriculture sectors, Medical sector and manufacturing sector except garments allowed. Public transport to remain shut", said Karnataka CM. The state cabinet also decided to provide COVID-19 vaccinations free of cost at government hospitals for those between 18-45 years of age. The health department will draw the guidelines required.

Tata Motors Q2 result: Loss widens to Rs 314.5

Tata Motors Q2 result: Loss widens to Rs 314.5

Tuesday, October 27, 2020

The country's largest commercial vehicle maker Tata Motors on Tuesday reported a consolidated loss of Rs 314.5 crore for the quarter ended September 30. The CNBC-TV18 poll has estimated Rs 1,290 crore loss. The company had reported a loss of Rs 216.56 crore in the September quarter of 2019. The auto major’s total revenue from operations dropped by 18.19 per cent to Rs 53,530 crore, from 65,431.95 crores a year ago. The company’s finance costs increased by Rs 114 crore to Rs 1,950 crore in the quarter due to higher gross borrowings. The company said its revenue in the last six months had been impacted as the group’s manufacturing plants and offices had to be closed down for a considerable period of time due to the Covid-19 pandemic. The company is monitoring the situation closely taking into account directives from the governments. Read more

Kovid-19 lockdown: Borrowers to get compound interest waiver for the six-month moratorium period

Kovid-19 lockdown: Borrowers to get compound interest waiver for the six-month moratorium period

Thursday, October 22, 2020

The Union Cabinet is understood to have given its go-ahead to the compound interest waiver for borrowers for the six-month moratorium period announced by the Reserve Bank, according to government sources. The government had filed an affidavit in the Supreme Court in a case concerning the moratorium, stating that it would waive interest on interest on loans up to Rs 2 crore for a select category of borrowers. The apex court has asked the government to present a clear plan on the scheme at the next hearing on November 2. The government will now inform the court about the approval from the Cabinet and subsequent directives in this regard. The Centre expects an expenditure of Rs 5,500-6,000 crore on the proposed waiver.

What India has been spending during the pandemic

What India has been spending during the pandemic

Friday, August 7, 2020

Months of lockdown and KOVID-19 threat have altered the habits of Indian consumers: Their spending patterns reveal just how deeply concerned they are with protecting their health and fortifying their store-cupboards, warding off boredom, and keeping their homes neat and tidy. Consumers around the world are showing an increased interest in safeguarding their health and boosting their immunity. In India, that often means Ayurveda and Companies such as Dabur India Ltd. and The Himalaya Drug Co. are witnessing high demand for traditional products like chyawanprash and proprietary supplements like Septilin. Read more

Government-gauranteed $40 billion loans is too little and may not be enough to save the pandemic hit companies

Government-gauranteed $40 billion loans is too little and may not be enough to save the pandemic hit companies

Friday, July 10, 2020

After months of lockdown, India reopened for business in June but for thousands of small entrepreneurs, the blow has been devastating. Businesses from textiles to sports goods and furniture are shuttered or working at a bare minimum. Govt's programme to help small businesses back on their feet through $40 billion of government-guaranteed loans is too little and may not be enough to save the many companies that form the backbone of India's economy, nearly three dozen entrepreneurs Reuters spoke to across the country said. Some said their business was so hamstrung by the pandemic that taking on new debt made little sense. They would rather the government had helped them by cutting the goods and service tax or waive off the interest on loans. Read more

Tata Motors slips nearly 7% after reporting a weak number in March quarter

Tata Motors slips nearly 7% after reporting a weak number in March quarter

Tuesday, June 16, 2020

Shares of Tata Motors slipped nearly 7 per cent to Rs 92 on the BSE after posting a consolidated net loss of Rs 9,863.73 crore in the fourth quarter ended March 31 (Q4FY20). Analysts had projected a net loss of Rs 1,300 crore. The consolidated profit for the March quarter FY19 was at Rs 1,117.5 crore and Rs 1,738.3 crore in Q3 FY20. Revenue from operations dropped 27.7 per cent to Rs 62,492.96 crore during the quarter, as standalone business fell 48 per cent to Rs 9,733 crore during the quarter YoY. For the full financial year 2019-20, Tata Motors reported a consolidated net loss of Rs 11,975.23 crore and total revenue from operations stood at Rs 2,61,067.97 crore. Hit by pandemic, company’s flagship subsidiary, Jaguar Land Rover (JLR) suffered a loss of £501 million in the March quarter and £422 million for the full year on revenues of £5.4 billion and £23 billion, respectively.

M&M Q4 results: Reports Rs 3,255 crore loss

M&M Q4 results: Reports Rs 3,255 crore loss

Friday, June 12, 2020

Mahindra & Mahindra on Friday posted a consolidated net loss of Rs 3,255 crore for the quarter ended March 31. It had reported a net profit of Rs 969 crore in the corresponding quarter last year. The company's revenue also declined 35 per cent on a year-on-year (YoY) basis to Rs 9,004.72 crore from Rs 13,807.88 crore reported in the corresponding quarter last year. The Board has recommended a dividend of Rs 2.35 per share of face value Rs 5. The sales were affected due to the lower industry volumes in both automotive and tractor segments due to lockdown due to the COVID-19 situation. Mahindra & Mahindra reported a standalone loss of ₹2,510 crores for Q4FY20 on account of booking impairment provision for certain long-term investment to the tune of ₹2,780 crores during the period. M&M’s standalone net profit was at ₹841 crores in the year-ago period. Read more

PVR, Inox Leisure share prices plunge up to 11% after reporting Q4 loss

PVR, Inox Leisure share prices plunge up to 11% after reporting Q4 loss

Tuesday, June 9, 2020

Shares of entertainment exhibition companies PVR and Inox Leisure declined up to 11 per cent on the BSE on Tuesday after reporting weak earnings for the quarter ended March 2020 (Q4FY20), impacted by the outbreak of Covid-19 in the last month of the quarter.PVR share price slipped up to 8 per cent to touch the day’s low of Rs 1,064 apiece on BSE, while Inox Leisure share price fell 11 per cent to Rs 248 a piece in today’s session. PVR reported a consolidated net loss of Rs 74.61 crore for the fourth quarter ended March 31The company had posted a net profit of Rs 46.75 crore in the January-March quarter a year ago. Consolidated revenues were down 22 per cent YoY at Rs 662 crore as compared to Rs 846 crore during the corresponding period of last year.PVR expenses were at Rs 731.84 crore in the fourth as against Rs 771.27 crore a year ago. The board of directors of PVR has approved the fundraising of up to Rs 300 crore through a rights issue. Read more

Five states leading Indian economy to recovery

Five states leading Indian economy to recovery

Tuesday, June 2, 2020

Five Indian states contributing nearly 27% of the country’s gross domestic product are leading a recovery in the economy as it slowly emerges from the world’s biggest lockdown, a study shows. Kerala, Punjab, Tamil Nadu, Haryana, and Karnataka have seen a pickup in activity, based on an analysis of indicators such as power consumption, traffic movement, the arrival of farm products at wholesale markets and Google mobility data, etc. Some of the most industrialized states such as Maharashtra and Gujarat were trailing because of tough measures still in place to contain the Covid-19 pandemic, the study showed. India will begin a phased lifting of the nationwide lockdown from June 8, allowing shopping malls, restaurants, and places of worship to reopen in areas where virus infections are under control. Read more

Lockdown in wealthy nations jolts money flows to millions

Lockdown in wealthy nations jolts money flows to millions

Monday, June 1, 2020

Lockdowns imposed by wealthy nations to slow the spread of the novel coronavirus, and the jolt those restrictions have delivered to their economies, are severing a vital lifeline for many often vulnerable people around the world: the billions of dollars in remittances sent home by relatives working abroad. Roughly one in nine of the global population receives remittances, or about 800 million people, according to the United Nations. Early data show severe drops have already taken place. The World Bank has said it expects global remittances to low- and middle-income nations to fall by $109 billion, or almost a fifth, in 2020 to $445 billion. The bank projects the pandemic will cut into the wages and employment of migrant workers, who tend to be the most vulnerable when there is an economic downturn in host countries. Read more

Lockdown Aftermath: Govt may need to pump Rs 1.5 trn into state banks

Lockdown Aftermath: Govt may need to pump Rs 1.5 trn into state banks

Thursday, May 28, 2020

India may need to inject up to Rs 1.5 trillion ($19.81 billion) into its state-owned lenders as their pile of soured assets is expected to double during the coronavirus pandemic, three government and banking sources told Reuters. The government initially considered a budget of around Rs 250 billion for bank recapitalisations but that has risen significantly with loan defaults likely to rise as businesses take a severe hit from nationwide lockdowns to tackle the coronavirus. "The situation is very grim," sources said, adding that banks would require fresh funds soon. Indian banks were already saddled with Rs 9.35 trillion of non-performing assets at the end of September 2019 or roughly 9.1% of their total assets at the time. One source said it was unlikely the central government would be able to fund the entire capital injection itself and may rely on indirect measures such as issuing bonds as a means of recapitalisation, a method which it has used previously.

IndiGo, SpiceJet shares fall on no relief package,lockdown extension

IndiGo, SpiceJet shares fall on no relief package,lockdown extension

Monday, May 18, 2020

Aviation stocks Indigo and SpiceJet tanked as much as 11 per cent on the BSE on Monday after the government's Rs 20 trillion economic packages disappointed to deliver immediate liquidity support to the bleeding airlines and another extension of the lockdown. The share price of SpiceJet fell 5% to trade at Rs 43.45 per share while that of IndiGo tanked 11.3% to trade at Rs 882 apiece. The aviation industry has been one of the worst affected with the business under a complete shut down at present. Finance Minister Nirmala Sitharaman announced three measures for the sector, on Saturday, India would rationalise its air space for civil aviation purposes which, at present, is capped at 60 per cent. Besides, she said six airports will be privatised, private companies will make an additional investment of Rs 12,000 crore on 12 airports auctioned before, and tax structure will be rationalised for the Maintenance, Repair and Overhaul (MRO) industry. Read more

NDMA extends the lockdown beyond Sunday till 31st May

NDMA extends the lockdown beyond Sunday till 31st May

Monday, May 18, 2020

The Union home ministry issued nine-page guidelines listing the dos and don'ts during the lockdown 4.0 that has been clamped in the country to cut the chain of coronavirus infection. Prohibition on all public gatherings, closure of schools, malls and restaurants, and suspension of flight and Metro services will remain in force till May 31 as the government on 17th May (Sunday) extended the ongoing countrywide lockdown to combat the Covid-19 spread. All domestic, international air travel of passengers, except domestic air ambulance, will remain prohibited. Metro rail services, schools, colleges will remain closed till May-end, the guidelines issued by the Ministry of Home Affairs (MHA) said. Read more

Eastern states can leverage Covid lockdown into an opportunity

Eastern states can leverage Covid lockdown into an opportunity

Sunday, May 10, 2020

Every entrepreneurial decision is made on a cost-benefit analysis and there is always a point from where a business strategy that appeared impractical and risky begins to look appealing. The disruption caused by the coronavirus pandemic could be one such point, for the states like Orissa, Bihar, Jharkhand etc.provided these states that supply much of the migrant labour to industries in states like Tamil Nadu, Andhra Pradesh, and Karnataka have the foresight and political will to reform their industrial environment. It is evident from many accounts that many migrant workers who have fled to their home states will not return. Read more

Aftermath of lockdown: companies now set to face labour problem

Aftermath of lockdown: companies now set to face labour problem

Tuesday, May 5, 2020

Entrepreneurs and exporters are struggling to crank up operations just when the government has relaxed stern restrictions because labourers have imposed a virtual lockdown by returning home in droves. Apart from labourers anxious to return home after over a month of rough, jobless existence, businesses are also being squeezed by problems of logistics and transportation and financial hardships owing to the lockdown. Industry leaders said April-June quarter would be a washout even for the high and mighty but would be catastrophic for SMEs. Read more

Paycuts,lay-offs and dismissals-Lockdown aftermath

Paycuts,lay-offs and dismissals-Lockdown aftermath

Saturday, April 25, 2020

Despondency is taking hold of employees at startups in India that are shrinking operations amid the Covid-19 lockdown putting jobs on the line. Over the past four weeks, at least two dozen top companies have fired employees and contract staff according to sources. Some others have cut salaries, according to some data available. The salary cuts range from 15% to as much as 50-70%. Some have put a few of their employees on the bench. The government has been consistently urging companies to refrain from layoffs and pay cuts as they cope with economic distress. A common thread at all firms is a high level of anxiety, fear of the unknown, and pressure to outperform in a suboptimal market.

Lockdown exit plan in India will seek to sustain gains

Lockdown exit plan in India will seek to sustain gains

Friday, April 24, 2020

In India, the three-week lockdown imposed on March 25 was extended to May 3 to control the coronavirus outbreak. Now Indian govt. is working on a careful strategy to lift the lockdown without losing the gains that have been achieved through the stringent nationwide shutdown, said a senior government official. The Centre is monitoring various challenges related to the resumption of economic activities on a day-to-day and case-to-case basis, a senior govt. official said. One key obstacle is economic hubs being located in red zones, where the disease needs to be curbed. The Centre has been keeping a close watch on state and district-level administrations and trying to assist them as well as helping businesses to resume operations. The infection numbers are better than initial projections, he said. “The graph is not very alarming on the health side. India is in a much better position than what was predicted by our health authorities,” the official said.

Small-caps outperform Sensex, mid-caps during one month Lockdown period

Small-caps outperform Sensex, mid-caps during one month Lockdown period

Thursday, April 23, 2020

Small-caps have outrun the mid-and-large caps in the last one month that the country has been under lockdown, triggered by the COVID-19 pandemic. The outperformance of the small-cap segment versus these two market segments also holds good from the lows the markets hit on March 24. The S&P BSE Small-cap index has recovered 26 percent as compared to a 23 percent rise in the S&P BSE Sensex and broader market index S&P BSE Midcap index from their respective 52-week low touched on March 24. Read more

Fallout of lockdown extension: India's economy may see first contraction in 40 years

Fallout of lockdown extension: India's economy may see first contraction in 40 years

Thursday, April 16, 2020

It looks like the Indian economy may be heading for its first full-year contraction in more than four decades after the government extended the lockdown to contain the coronavirus. The lengthening of the mandatory stay-at-home period to 40 days from 21 days will result in a direct output loss of more than 8 percent over that time, according to experts. Decline in GDP for the year to March 2021 of 0.4 percent and 0.1 percent, respectively is predicted by the expert. The economy had last contracted in 1980 when GDP shrank 5.2 percent.

Dealing with Covid-19 after the lockdown

Dealing with Covid-19 after the lockdown

Monday, March 30, 2020

The government needed to take "extraordinary" and "unprecedented" measures like a nationwide lockdown for three weeks to prevent the spread of the coronavirus, said Prime Minister Narendra Modi on 30th March (Monday). The government denied a community outbreak of the disease. “It took 12 days for cases to rise from 100 to 1,000 in our country, whereas seven other developed nations having lesser population than us have seen multiple increases,” said Lav Agarwal, joint secretary in the health ministry, at a press conference in Delhi. The government made the statements as India’s cumulative coronavirus infections have breached the 1,000 mark. The country is entering a crucial phase in this outbreak, with the number of daily cases also growing in triple digits for the last three days. Read more

Tag: lockdown

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