Stock Market Latest Updates: Sensex surges over 900 points, Nifty holds 9,200-level; Axis Bank, ICICI Bank among major gainers

Rupee ends at 76.39 against dollar

TRAI raises international call termination charges to 35-65 paise/min

Telecom regulator TRAI on Friday said international call termination charges will be brought under forbearance but within prescribed range of 35 to 65 paise/min against a fixed rate of 30 paise/minute earlier — a move expected to benefit telecom operators.

International termination charge is the rate payable by an Indian International Long Distance Operator (ILDO), who carries the call from outside the country to access provider in the country in whose network the call terminates.

While the regulator has given a range with floor and a ceiling, and left it to operators to set the rate under a forbearance regime, it has, however, mandated that operators will offer non-discriminatory rate for such termination charges to everyone.

Reviewing govt order on refunds: Vistara

A day after the Centre stated that air passengers can ask for full refunds for tickets booked during the first phase of lockdown for travel up to 3 May, Vistara said it is “reviewing” the order and will comply once the government clarifies some of its aspects.

Several passengers have complained on social media against Indian airlines for giving refunds for flights cancelled due to the coronavirus lockdown and instead issuing credit vouchers for future travel.

“We are reviewing the ministry’’s notification on refunds for bookings affected in the lockdown and will comply once the authorities have clarified some aspects of it,” Vistara spokesperson said.

India imposed a lockdown for 21 days on 25 March and then extended it till 3 May.

RBI bans banks, cooperatives from paying dividends

The Reserve Bank on Friday debarred all commercial and cooperative banks from paying dividends to shareholders and promoter groups as the regulator fears the Covid-driven economic shocks would continue longer and may put the health of the financial system at risk.

The decision will hit the already scuppered finances of the Centre, given the massive shocks to the economy from the coronavirus-driven lockdown and the already falling growth rates which has brought down demand for loans and thus the profitability of banks which were anyways grappling with high bad loans.    

“It is imperative that banks conserve capital to retain their capacity to support the economy and absorb losses in an environment of heightened uncertainty. In this regard in view of the Covid-19-related economic shocks, commercial banks and cooperative banks shall not make any further dividend payouts from the profit pertaining to FY20 until further instructions,” RBI governor Shaktikanta Das said while announcing a slew of liquidity enhancing measures to prop up the economy.

Mahindra & Mahindra to raise Rs 1,000 cr via NCDs

Mahindra & Mahindra (M&M) on Friday said it will raise up to Rs 1,000 crore by issuing securities on private placement basis.

“The loans and investment committee at its meeting held on Friday approved issuance and offer of 10,000 rated, listed, unsecured, redeemable, non- convertible debentures (NCDs) of face value Rs 10,00,000 each aggregating Rs 1,000 crore on private placement basis,” M&M said in a regulatory filing.

The auto major, however, did not disclose the reasons for raising the capital.

Sensex surges over 1,000 points, Nifty close to 9,300-mark  

The market staged sharp recovery as Sensex surged 1038.28 points or 3.39 percent to 31,640.89 while the Nifty was up 292.45 points or 3.25 percent at 9,285.25 at 3.10 pm.

Axis Bank was the top gainer in the Sensex pack zooming nearly 15 percent.

AirAsia, Malaysia Airlines merger an option as COVID-19 hits industry, says minister

Merging money-losing state carrier Malaysia Airlines Bhd (MAB) with budget airline AirAsia Group Bhd is one of the options to “save” them as the COVID-19 crisis batters the industry, Malaysia’s second-most senior minister told Reuters on Friday.

The pandemic that has killed at least 143,744 people around the world has led to lockdowns in many countries, brought air travel to a virtual halt and left airlines battling for survival.

Mohamed Azmin Ali, Malaysia’s minister of international trade and industry and the government’s designated second-in-command, said deliberations would soon take place on various options to help out the country’s airline industry.

Ashok Leyland seeks govt support for MSMEs post-lockdown

Micro, small and medium enterprises, which form the backbone of Indian industry, will need to be supported by the government to kick-start the economy after lockdown is lifted, according to Ashok Leyland Managing Director and CEO Vipin Sondhi.

Measures such as easy access to working capital and liquidity through banks and NBFC’’s, providing interest free and collateral free loans; introduction of an incentive for MSME’s to help them pay salaries and wages to their employees in these times need to be considered by the government.

“It would be crucial to kick-start economic activity after this period of disruption. MSME’s are the backbone of Indian industry and form the key element of the product supply chain – be it agri-processing, textiles, or auto-ancillaries," Sondhi said in a statement.

RBI pumps Rs 1.2 lakh cr fresh currency into system in last 45 days: Shaktikanta Das

The Reserve Bank has pumped Rs 1.2 lakh crore of fresh currency into the system in last 45 days since the COVID-19 outbreak in the country, Governor Shaktikanta Das said on Friday.

Automated teller machines and business correspondents, who take banking services to far flung areas, are also working at high capacity levels to ensure financial services reach everybody, he said.

The comments on currency come amid media reports of a Rs 86,000 crore jump in currency circulation in March and also a greater tendency among people to withdraw to hoard cash amid the lockdown.

“Regional offices of the RBI have supplied fresh currency of Rs 1.2 lakh crore from 1 March till 14 April to currency chests across the country to meet increased demand for currency in the wake of the COVID-19 pandemic,” Das said in his video message over social media.

RBI eases bad loan rules, freezes dividend payout by banks

The RBI on Friday further eased bad-loan rules, froze dividend payment by lenders and pushed banks to lend more by cutting the reverse repo rate by 25 basis points, as it unveiled a second set of measures to support the economy hit hard by a coronavirus-led slowdown.

In his second televised address since the nationwide lockdown began from March 25, the Reserve Bank of India (RBI) Governor Shaktikanta Das pledged to boost liquidity and expand bank credit.

In a measure that effectively meant that bad loans or non-performing asset (NPA) classification will now happen after 180 days instead of the current policy of 90 days of payment default, the RBI announced an asset status freeze on loans that have been granted moratorium or deferment on interest/principal payment.

Indices extend gains as Sensex zooms over 700 points, Nifty above 9,200-mark 

The market extended gains as Sensex zoomed 736.58 points or 2.41 percent to 31,339.19 while the Nifty was up 218.85 points or 2.43 percent at 9,211.65 at 2.40 pm.

Axis Bank was the top gainer in the Sensex pack surging over 7 percent. Other gainers included IndusInd Bank, ICICI Bank, Maruti, TCS and Reliance.

Passenger vehicle dispatches likely to decline by 10-12% in FY21: ICRA

Domestic passenger vehicle (PV) dispatches are likely to decline by 10-12 percent in the current financial year due to COVID-19 pandemic, rating agency ICRA said on Friday.
 

ICRA said the lockdown will put financial stress on consumer’’s income level and will result in deferral of non-discretionary items like PVs.

“This is likely to delay industry’’s recovery prospects by about 6-8 months. The overall wholesale dispatches will decline by 10-12 percent this year,” the rating agency said.

Recovery in rural income and improvement in overall economic activity will remain crucial to have any meaningful improvement in retail demand off-take, it added.

Companies can now intimate exchanges about board meetings till 31 July: SEBI

Yes Bank scam: DHFL promoters Wadhawan brothers’ plea for FIR copy rejected

A special court in Mumbai has rejected the plea of DHFL promoter Kapil Wadhawan and his brother Dheeraj, seeking inspection and certified copies of the FIR registered against them in connection with the Yes Bank scam.

The plea was rejected by the court on the grounds that the matter is not urgent and the accused has liberty to apply after the lockdown is lifted, Wadhawans’’ lawyer said on Friday.

The Wadhawan brothers are named as accused in the Central Bureau of Investigation (CBI) FIR pertaining to the swindling of money by Yes Bank promoter Rana Kapoor and others.

Both Kapil and Dheeraj were absconding since the case was registered against them on 7 March, prompting the CBI to get non-bailable warrants (NBWs) against them from a special court.

Sensex surges 604 points, Nifty above 9,100-mark

The market extended gains as Sensex surged 603.71 points or 1.97 percent to 31,206.32 while the Nifty was up 176.70 points or 1.96 percent at 9,169.50 at 2.10 pm.

Discoms to suffer Rs 30,000-cr revenue loss, face Rs 50,000-cr liquidity crunch: CII

Industry body CII on Friday said discoms are likely to suffer a net revenue loss of around Rs 30,000 crore and liquidity crunch of about Rs 50,000 crore due to the coronavirus-induced nationwide lockdown.

According to government data, the discoms owe Rs 92,602 crore to Gencos as of February, 2020.

In its report released on Friday, the CII has suggested host of measures like easy credit facility for discoms (from PFC and REC) to pay off its dues to Gencos, lower tariff especially for industrial and commercial consumers and deferral of indirect taxes like electricity duty, coal cess etc.

According to the report, power sector, one of the essential services under the lockdown till May 3, is battling the twin issues of demand and liquidity compression.

Govt to soon clear Rs 10,000 cr ‘fund of funds’ for MSMEs: Nitin Gadkari

A Rs 10,000 crore ‘fund of funds’ will soon be approved by the government to buy up to 15 percent equity in MSMEs with high credit rating that want to list on stock exchanges and raise money from the capital markets, Union minister Nitin Gadkari said.

Gadkari also said a separate scheme was being formulated for according credit rating to MSMEs based on their annual turnover, exports and GST payments, and that the National Small Industries Corporation or another government body will control the Fund of Funds.

He said the government wants the fund’s corpus to be utilised by micro, small and medium enterprises (MSMEs) having AAA rating. The AAA rating implies high credit worthiness.

“We have submitted a proposal for a Fund of Funds of Rs 10,000 crore which has been approved by the Finance Ministry. It is going to be placed before the Cabinet and will soon be cleared,” said the minister for MSMEs.

Indices erase gains as Sensex up 460 points 

The market staged a comeback as Sensex was trading 459.83 points or 1.50 percent higher at 31,062.44 while the Nifty was up 135.15 points or 1.5 percent at 9,127.95 at 1.30 pm.

India to stage sharp V-shaped recovery in 2021-22: RBI governor Shaktikanta Das

The Reserve Bank governor Shaktikanta Das on Friday said there are a few slivers of brightness amidst the encircling gloom and hoped that India will stage a sharp V-shaped recovery in 2021-22 as projected by the International Monetary Fund (IMF).

Softening inflation, Das said would make available more policy space to the central bank to address risks to the growth going forward. The IMF has projected sizable V-shaped recoveries for 2021, close to 9 percentage points for global GDP.

It expects India to record a sharp turnaround and resume its pre-COVID pre-slowdown trajectory by growing at 7.4 percent in 2021-22.

The RBI governor said, over the last three weeks, there have been a few data releases on domestic developments (including on factory output), but they are too disjointed to allow a comprehensive assessment of the state of the economy.

Markets hold on to gains; auto, realty, financials top sectoral gainers

Indian markets at half time are still holding on to its gains, however; headline indices have cooled off from the high point of the day following that massive GAP up opening of 300 points, said Aditya Agarwala, senior technical analyst, YES Securities.

Further, bears continue to step on the accelerator as Nifty approaches key resistance zone of 9,300-9,350, he said.

“On the downside, 9,090-9,050 is immediate demand zones and it is crucial for the bulls to take the Index past the 9,190-9,200 hurdle for the short covering rallies to extend to levels of 9,300-9,350,” said Agarwala.

Broader markets have continued to outperform the headline indices throughout the week; both midcap and smallcap indices are up between 3.5-6 percent respectively this week so far, he said.

Auto, realty and financials are the top sectoral gainers today while FMCG is underperforming. European markets have opened with massive gains of almost 3 percent for all the three major Indices i.e., FTSE, CAC and DAX, said Agarwala.

Palghar industries in Maharashtra asked to prepare for operations

The district administration of Palghar in Maharashtra on Friday asked industries in the area to be prepared to start operations, in keeping with the directives issued by the ministry of home affairs (MHA).

In a letter, collector Kailas Shinde asked the industries in the rural parts of the district to keep things in order in case they are asked to begin operations on 20 April.

The collector wrote to industrial associations at Boisar, Palghar, Vasai, Wada and Dahanu, asking them to follow the directives of the MHA.

Industries in the rural areas that are permitted to operate will function with limited staff and also provide accommodation for workers or provide dedicated transport to its employees, the collector’’s letter stated.

IndiGo stocks jumps over 4%

Oil prices mixed on weak China GDP data

Oil prices were mixed on Friday after the weakest Chinese economic data in decades showed the impact of the coronavirus pandemic, offsetting some earlier gains on optimism for President Donald Trump’s early plans to revive the US economy.

Brent was up by 66 cents, or 2.4 percent, at $28.48 a barrel, while US crude for May delivery, which expires on 21 April, was down 47 cents, or 2.4 percent, at $19.40 a barrel. The more active June contract was up 74 cents, or 2.9 percent, at $26.27.

China’s economy shrank for the first time since at least 1992 in the first quarter, as the coronavirus outbreak paralysed production and spending and punched a huge hole in global demand for crude and refined products.

Sensex jumps over 600 points, Nifty above 9,100

The market staged a comeback as Sensex jumped 602.84 points or 1.97 percent to 31,205.45 while the Nifty was up 175.45 points or 1.95 percent at 9,168.25 at 1 pm.

GVK MIAL exports 5,200 tonne air cargo since during lockdown

GVK MIAL, which manages Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA), has exported air cargo of 5,200 tonne of medicines, medical equipment, vaccines, diagnostic reagents, dangerous goods, engineering goods and chemicals since 23 March.

It also imported 3,324 tonne of freight including high volumes of commodities such as pharmaceuticals, dangerous goods, engineering goods and chemicals. 
 

On an average, the airport witnesses 8 to 9 cargo flights per day. The export flights majorly operate to countries such as USA, Germany, South Africa, France, United Kingdom.

Also, scheduled freighters and ad-hoc cargo charters continue to remain operational. CSMIA air cargo has traded a total of 3788 tonnes of pharma products within India and globally

Cathay Pacific to close 3 cabin crew bases in US; 286 staff to lose jobs

Hong Kong’s Cathay Pacific Airways will close its three cabin crew bases in the United States, the airline said on Friday, laying off 286 staff as the coronavirus pandemic has virtually halted global travel.

The carrier has grounded most of its planes because of the fall in demand, flying only a skeleton network to major destinations such as Beijing, Los Angeles, Singapore, Sydney, Tokyo and Vancouver in April and May that represents just 3 percent of normal capacity.

Appliances, electronics industry seek nod to restart production

Home appliances and consumer electronics manufacturers said they are gearing up to resume production and are in talks with local authorities for permission to operate factories which are located within or near city municipal limits.

While welcoming the government’’s guidelines for the extended lockdown and giving nod to resume production from April 20, industry body Consumer Electronics and Appliances Manufacturers Association (CEAMA) said there are still ambiguities which need to be cleared.

“Individually, each brand is seeking more clarity and approval on the guidelines. The guidelines say that we would have to open in a phased manner. All brands are gearing up to open up, wherever, it will be permitted," CEAMA president Kamal Nandi said.

He, however, added, “many places (factories) are falling under red zone and several places under municipal limits, wherever, we have clarity and approvals, we would open up.”

Indices in green as Sensex up 461 points, Nifty above 9,100

The market continued to stay in the green as Sensex was trading 461.37 points or 1.51 percent higher at 31,063.98 while the Nifty was up 136.60 points or 1.52 percent at 9,129.40 at 12.30 pm.

L&T to donate PPEs, other medical equipments

To help India fight against COVID-19 pandemic, Larsen & Toubro will provide medical aid worth Rs 40 crore comprising of PPEs, N95 masks, diagnostic kits and other medical equipments, a top company official said on Friday.

This will be in addition to the Rs 500 crore provision per month by the engineering giant for providing support to 160,000 contract labour spread across the country and donation of Rs 150 crore to the PM CARES Fund announced on 30 March.

The company will provide 45,000 PPEs, 151,000 N95 masks and 155 diagnostic kits. The value of the medical aid to combat deadly coronavirus is estimated at about Rs 40 crore.

“As a responsible corporate citizen, we are providing the PPEs, diagnostic kits, N95 masks and critical hospital equipment including ventilators that will be helpful in effectively combating the pandemic”, SN Subrahmanyan, CEO & MD, Larsen & Toubro told PTI.

Uttar Pradesh govt to woo industry disenchanted with China

Accepting the coronavirus pandemic as not just a challenge but also a big opportunity for the economy, the Uttar Pradesh government has decided to offer a special package to investors “disenchanted” with China and eager to shift base to other countries, a senior official said Friday.

“Many companies appear to be disenchanted with China. If a company or investor wants to invest in the state, chief minister Yogi Adityanath will give them a special package and facility,” additional chief secretary (home) Awanish Awasthi said.

Adityanath has asked officials to work out the package, which could be offered to investors in addition to the existing incentives, Awasthi said, adding the Industrial Development and MSME departments have also been asked to come up with a package.

S&P Ratings revises India’s FY21 GDP growth forecast to 1.8%

Britain offers freeze on auto finance repayments in pandemic

Britain’s financial watchdog has proposed a repayment freeze for consumers with auto finance leases, goods bought on high-cost credit, and pawned belongings during the coronavirus pandemic.

The Financial Conduct Authority (FCA) said on Friday it expects car leasing firms to provide a three-month payment freeze to customers who are having temporary difficulties meeting payments due to the coronavirus.

“If customers are experiencing temporary financial difficulties due to coronavirus, firms should not take steps to end the agreement or repossess the vehicle,” the FCA said in a statement.

Payday lending firms that offer short-term loans at a high interest rate, are expected to provide a one month interest-free payment freeze.

Indices trim gains as Sensex up 442 points, Nifty holds 9,100-mark

The market continued to lose gains as Sensex was trading 442.54 points or 1.45 percent higher at 31,045.15 while the Nifty was up 125.85 points or 1.4 percent at 9,118.65 at 12.10 pm.

Boeing restarting commercial airplane production next week

Boeing Co said it will resume commercial airplane production next week in Washington state after suspending operations last month in response to the coronavirus pandemic, and the company’s chief executive told employees the aerospace industry will need financial help from the government.

“Our industry will need the government’s support, which will be critical to ensuring access to credit markets and likely take the form of loans versus outright grants,” Boeing chief executive Dave Calhoun told employees in a letter seen by Reuters.

“Our team continues to focus on the best ways to keep liquidity flowing through our business and to our supply chain until our customers are buying airplanes again,” it said.

About 27,000 Boeing workers in the Puget Sound area will return to production of the 747, 767, 777 and 787 jet programmes.

Rupee rises 45 paise to 76.42 post-RBI presser

The Indian rupee appreciated by 45 paise to 76.42 against the US dollar in intra-day trade on Friday after Reserve Bank of India governor Shaktikanta Das announced measures to ensure adequate liquidity in the system to ease the financial stress caused by the COVID-19 pandemic.

Forex traders said positive domestic equities and weakening of the American currency in the overseas also supported the rupee.

At the interbank foreign exchange, the rupee opened at 76.59, and then gained further ground and touched a high of 76.42 against the US dollar, registering a rise of 45 paise over its previous close.

On Thursday, rupee had settled at an all-time low of 76.87 against the US dollar.

European new car sales plunge by 51.8% in March: ACEA

Passenger car sales tumbled by more than 50 percent in Europe’s major markets in March as lockdowns imposed due to the new coronavirus took their toll, data showed on Friday.

In March, new car registrations dropped by 51.8 percent to 853,077 vehicles in the European Union, Britain and the European Free Trade Association (EFTA) countries, statistics from the European Auto Industry Association (ACEA) showed.

Sales fell in all EU markets, with Italy – hit particularly hard by the pandemic – reporting the biggest drop of 85.4 percent, while registrations tumbled by 37.7 percent in Germany, 72.2 percent in France and 69.3 percent in Spain.

Govt lifts curbs on exports of formulations made from Paracetamol

The government on Friday removed restrictions on exports of formulations made from Paracetamol amid outbreak of COVID-19.

However, restrictions on exports of Paracetamol active pharmaceutical ingredients (APIs) will continue on, the Directorate General of Foreign Trade (DGFT) said in a notification.

“…The formulations made from Paracetamol (including fixed-dose combinations)…are made free for export with immediate effect. However, Paracetamol APIs will remain restricted for export,” it said.

The government on 3 March had put export restrictions on 26 pharma ingredients and medicines, including paracetamol.

Japan airlines keep most domestic flights despite few takers for seats

Japan’s top airlines are operating a majority of their domestic capacity even though the coronavirus outbreak has left seats on flights mostly empty, amid a lack of clear government directives on the functioning of transport infrastructure in the crisis.

ANA Holdings Inc and Japan Airlines Co, Japan’s two biggest airlines, have cut around 90 percent of international flights but left their domestic networks relatively intact, industry data showed. The two normally fly around 800 or more domestic flights daily.

They are currently flying around two-thirds of capacity with 10 percent of the usual demand, according to the airlines. That is despite Japan declaring a one-month state of emergency in major cities on 7 April which was expanded on Thursday to include the entire country.

RBI to use all instruments to deal with COVID-19 challenges: Shaktikanta Das

Reserve Bank of India governor Shaktikanta Das on Friday assured that the central bank will use all instruments to deal with the challenges posed by the outbreak of COVID-19.

He also said that this is not the last of the announcements on financial support during the crisis, stating that the central bank will come up with responses in the future in the interest of the economy based on evolving situations.

Pointing out that the Reserve Bank of India (RBI) is monitoring all macro parameters on a continuous basis, he said, economic activity has come to standstill during lockdown.