Stock Market Latest Updates: Sensex tanks over 1,000 points, Nifty below 9,000-mark; except pharma, all other sectoral indices end in red

India’s avoidable coal imports to be brought down to zero

India is planning to bring ‘‘avoidable coal imports’’ to zero by 2023-24 amid abundance of fuel stock due to subdued demand by the power sector in the wake of the coronavirus-driven lockdown, according to a source.

The source, on the condition of anonymity, said the “government is planning to bring down to zero the country’’s avoidable coal import by 2023-24”.

This comes at a time when the country’’s coal imports increased marginally by 3.2 percent to 242.97 million tonnes (MT) in the just-concluded financial year 2019-20.

Of the total, 110 MT of fuel was unavoidable import, while the remaining nearly 130 MT is avoidable import, the source said.

Employees facing movement curbs, plants not operating at full capacity: HUL

FMCG major Hindustan Unilever Limited (HUL) on Tuesday said its factories, though operational, are unable to operate at full capacity as its employees continue to face restriction in movement from local authorities in various states amid coronavirus-induced nationwide lockdown.

The company is working with local authorities and state governments to ease out movement restrictions.

“Most of our factories, many of our distribution centres and majority of our suppliers are operating, but not at their full capacity," a spokesperson of HUL told PTI.

Elaborating further the spokesperson said, “we continue to face local or state restrictions in the movement of our people who are working in essential goods supply chain."

Over 1,300 firms get nod to resume work in Maharashtra

Over 1,300 companies, including manufacturing units, foundries, textile firms, have received the Maharashtra Industrial Development Corporation’’s (MIDC) certification to resume their operations amid the COVID-19 lockdown.

The MIDC is the state government’s nodal agency to facilitate industries in terms of land allotment, permissions and policy making.

“We received registration of some 3,000 industries across the state, of which 1,300 have received certification from the state to resume production, processing or manufacturing,” a senior MIDC official told PTI.

As many as 20,000 employees will report to work at these companies, of which 60 per cent will get accommodations near their plants, the official said.

Kia Motors plans to offer financial support to dealers

Kia Motors on Tuesday said it has come up with various initiatives to financially support its dealer partners amid difficult business environment due to COVID-19 pandemic.

The company said it has formulated a programme to help its dealers steer through the challenging phase, which includes multiple initiatives to sustain and improve cash flow to the dealer partners.

The automaker said it would provide support in terms of interest cost of dealer stock, including vehicles in physical and transit stock.

Besides, unutilised dealer funds lying with the company have already been remitted back to their current accounts, it added.

Hero MotoCorp rises over 1%

Sensex down 984 points, Nifty falls 279 points 

The benchmark indices made the recovery in a slow manner as Sensex was trading 984.08 points or 3.11 percent lower at 30,663.92 while the Nifty was down 278.80 points or 3.01 percent at 8,983.05 at around 3.15 pm.

NSE cautions trading members about Zoom video conferencing app, cyber threats

Leading stock exchange NSE has cautioned trading members about video conferencing app Zoom and cyber threats amid increased usage of the platform in the wake of nationwide lockdown to contain coronavirus pandemic.

Many organisations have switched to work-from-home due to outbreak of the pandemic with employees using online communication platforms, including Zoom, Microsoft Teams, for remote meetings and webinars.

It has been observed that some of these apps are not secured and are vulnerable to be exploited thus revealing users identity, location or content of the discussion, the National Stock Exchange (NSE) said in a circular.

The exchange requested all trading members to undertake appropriate actions as applicable to their environment.

Ferrari rolls out coronavirus testing to get staff ready for work

Workers at Ferrari are signing up en masse for voluntary coronavirus screening so they can return to work as soon as possible in an ambitious scheme that could serve as a blueprint for manufacturers desperate to resume production.

Under its ‘Back on Track’ project, Ferrari staff, families and suppliers first take blood tests to see if they’re clear and will then be given an app which will alert them if they’ve been in close contact with any scheme members who contract COVID-19.

As manufacturers in Europe and North America scramble to find ways to restart their businesses while keeping the virus out of production sites, Ferrari’s scheme to test workers and track possible cases of COVID-19 is being closely watched.

Cash-strapped Virgin Australia collapses, enters voluntary administration

Australia’s second biggest airline, Virgin Australia, collapsed on Tuesday, putting 16,000 jobs under threat as the cash-strapped carrier announced that it entered voluntary administration to recapitalise the business after being battered by the coronavirus pandemic, which has crippled the global airline industry.

The move came after the airline, which suspended almost all flights last month following wide-spread travel bans, failed to secure A$1.4 billion (USD 887.60 million) loan from the federal government.

In a statement, Virgin Australia said the group has entered into voluntary administration to ‘recapitalise the business and help ensure it emerges in a strong financial position on the other side of the COVID-19 crisis’.

The group’s board of directors has appointed accounting firm Deloitte as voluntary administrators.

Northern Railway to deliver its first order of 2,000 masks

Having made face masks out of fabric meant for employees’’ uniforms, the Northern Railway has bagged its first order of 2,000 masks that are washable, cheap and even available in orange, the colour worn by trackmen on duty.

A Delhi Residents Welfare Association is the Northern Railway’s first paying client and received the first batch of these masks on Tuesday.

With the government making wearing of masks mandatory in public and at the workplace, these come at a cost Rs 5.94 each against the market price of Rs 7.50 and could well serve to meet the rising demand of masks in the coming days.

Profits of China’s state-owned firms fall 59.7% y/y in first quarter

Profits of China’s state-owned firms plunged 59.7 percent in the first three months of 2020 from a year earlier to 329.16 billion yuan ($46.46 billion), the finance ministry said on Tuesday, as the coronavirus crisis ravaged the economy.

TCS partners with Telangana State Council of Higher Education

A strategic business unit of Tata Consultancy Services (TCS) has partnered with the Telangana State Council of Higher Education (TSCHE) to prepare college students for future job readiness.

Under the partnership, a set of curated courseware will be made available free of cost to four lakh students across 1,500 institutions of higher education in the state effective this academic year.

The courses cover a plethora of topics that will improve the employability quotient of students and equip them to compete in the job market after they graduate.

PE, VC investments in India may dip up to 60% in 2020 due to COVID-19: EY

Private equity and venture capital investments in India may decline up to 60 percent in 2020 due to COVID-19 pandemic, according to a report by consulting firm EY.  

Fund raising activity, which typically influences future investments, has also gone ‘cold’, if one were to look at March’s data of private equity (PE) and venture capital (VC) funds having raised only $85 million, EY said in a statement.

In the past few years, fund raising activity has been touching record highs, and grew 28 percent to $48 billion in 2019. However, there have been concerns on the same after the emergence of the pandemic, which is set to lead to a unprecedented impact on economic activity due to lockdowns and social distancing.

EY projected Indian PE and VC investments at $19-26 billion in 2020, which is a 45-60 percent decline over the 2019 figures.

Support from govts essential to protect jobs, preserve aviation industry, say ITF, IATA

International Transport Workers’ Federation (ITF) and the International Air Transport Association (IATA) have called for support from governments to the aviation industry, to protect jobs and ensure that air services can be maintained.

The economic situation facing the aviation industry is severe. Air passenger demand is down 80 percent. Airlines are facing a liquidity crisis which threatens the viability of 25 million jobs directly and indirectly dependent upon aviation, including jobs in the tourism and hospitality sectors.

In a joint statement, ITF and IATA called for governments to ensure that the protection of health workers caring for those with COVID-19 is prioritised.

Sensex down 1,043 points, Nifty holds 8,900-mark

The benchmark indices recovered slightly as Sensex was trading 1043.18 points or 3.30 percent lower at 30,604.82 while the Nifty was down 277.40 points or 3 percent at 8,984.45 at around 2.30 pm.

IndusInd Bank, Bajaj Finance, Axis Bank and Tata Steel were the major losers in the Sensex pack.

I-T Dept sends e-mails to 1.72 lakh assessees over outstanding tax dues

The Income Tax Department has sent e-mails to 1.72 lakh assessees, including start-ups, companies and individuals, who have outstanding tax demands as well as tax refunds asking them to provide as update on the payment.

Since 8 April, the Central Board of Direct Taxes (CBDT) has been fast-tracking refund payments to help taxpayers in the COVID-19 pandemic situation and has till date issued nearly 14 lakh refunds involving an amount of over Rs 9,000 crore to various taxpayers including individuals, Hindu Undivided Families (HUFs), proprietors, firms, corporate, start-ups, and micro, small and medium enterprises (MSMEs).

The CBDT in a statement said its e-mail seeking clarification from all those who are entitled to get tax refund but also have outstanding tax to pay cannot be misconstrued as harassment.

Rupee plummets to record low of 76.84 at close

Gold futures surge on domestic demand

Gold prices on Tuesday rose by Rs 471 to Rs 46,185 per 10 gram in futures trade as speculators created fresh positions on firm spot demand.

On the Multi Commodity Exchange, gold contracts for June traded higher by Rs 471, or 1.03 percent, at Rs 46,185 per 10 gram in a business turnover of 16,693 lots.

The yellow metal for August delivery edged up by Rs 453, or 0.99 percent, to Rs 46,337 per 10 gram in a business turnover of 2,766 lots.

Fresh positions built up by participants mainly led to the rise in gold prices, analysts said.

Uncertain if any business will be back to normal by Q2: Harsh Pati Singhania

For any business, return to normalcy by the second quarter of this fiscal seems uncertain as a lot will depend on how quickly the consumers recover from the overall impact of the coronavirus outbreak and the lockdown, according to JK Organisation director Harsh Pati Singhania.

While the recovery rate would vary from industry to industry, he said the service sector would take longer time to bounce back from the COVID-19 impact.

“It is quite clear that if you look at Q1 of FY21 there would certainly be an impact… Q2 may also be affected as some businesses would have a deeper or continued impact and some businesses may see a quicker recovery. But I do not know whether any business will be back to almost normal in Q2,” Singhania told PTI.

SEBI slaps Rs 18.5 lakh fine on individual for violating insider trading, disclosure norms

Markets regulator SEBI has imposed a penalty of Rs 18.5 lakh on Abhay Javlekar for violating insider trading norms and disclosure lapses, among others, in the matter of Incap Financial Services.

In addition, he was also indulged in fraudulent trading activities in the shares of Incap.

Loan moratorium may lead to greater build-up of credit losses for banks: Moody’s

The loan moratorium extended by banking regulators in countries like India and China to deal with the liquidity crunch amid COVID-19 crisis will provide temporary relief to borrowers, but will constrain banks from taking proactive recovery actions and could lead to an even greater build-up of credit losses once the moratoriums are lifted, according to Moody’s.

In a report on Asia Pacific region, Moody’s on Tuesday said while policy stimulus will shore up credit quality for larger companies in sectors, including airline and oil and gas, Asia’s banking sector profitability will also decline from deteriorating asset quality and lower net interest margins.

“Financial regulators in China, Australia, Malaysia, India and some other Asian economies have enacted debt moratoriums to soften the liquidity crunch for businesses and households. While repayment delays will provide temporary relief to borrowers, these directives will also constrain banks’ abilities to take proactive restructuring and recovery actions. These measures also could lead to an even greater build-up of credit losses once the moratoriums are lifted,” Moody’s said.

Lockdown: No point in starting plants if people can’t buy, says Rajiv Bajaj

Sensex nosedives over 1,200 points, Nifty down 338 points

The market continued its freefall as the Sensex lost over 1,200 points while the Nifty was down over 300 points.

Sensex plunged 1,211.68 points or 3.83 percent to 30,436.32 while the Nifty was down 338.50 points or 3.65 percent at 8,923.35 at around 1.15 pm. 

Heavy selling was witnessed in oil and gas, finance, banking and energy stocks.

COVID-19 has high impact on business, economy: Survey

The COVID-19 pandemic is having a deep impact on the Indian economy and members of Indian industry. The magnitude and speed of collapse in economic activity that India has seen over the last few weeks is unprecedented and there is tremendous uncertainty about what the future holds for businesses and enterprises, said a survey.

Almost 72  percent of the respondents to the FICCI – Dhruva survey have reported that COVID-19 is having a ‘high to very high’ level of impact on their business.

Further, a substantial majority of the respondents do not foresee a positive demand outlook for their business in this fiscal, with 70 percent of the surveyed firms expecting a degrowth in sales in the fiscal year 2020-21. 

A vast majority also foresee a reduction in their business cashflows and company’s order book.

Otago researchers make contribution to COVID-19 response
 

A University of Otago molecular biologist has received new government funding of $235,746 for COVID-19 related research to develop an effective point-of-care test for the infectious disease.
 

Associate Professor Jo-Ann Stanton is one of three University of Otago researchers to receive part of the Health Research Council and Ministry of Health’s $3.8 million funding, split among 13 new research projects nationally.
 

Professor Michael Baker ($500,000) and Senior Lecturer Lesley Gray ($179,904) both from the University of Otago, Wellington, also received funding for new projects.

Volvo, Daimler to found truck fuel cell joint venture

Volvo and the truck division of Daimler have agreed to set up a joint venture to develop and produce fuel cell systems for heavy vehicles, the Swedish and German companies said Tuesday.

Daimler Truck will put all its current fuel cell activities into the joint venture, and the Volvo Group will buy a 50 percent stake in the venture for around 600 million euros ($652 million).

The joint venture will be independent and autonomous, with Daimler Truck and Volvo continuing to compete in all other business areas, the companies said.

IIM Kozhikode launches dedicated interactive platform for innovators, entrepreneurs

The Indian Institute of Management Kozhikode, announced the launch of an online platform for innovators and entrepreneurs to creatively share their innovations and engage with other interested stakeholders.

LiveBuzz-Startup Digital Diaries is conceived and managed by the institute’s business incubator and entrepreneurship development center called LIVE.
 

Professor Debashis Chatterjee, director, IIM Kozhikode said, “In tune with the sentiments of the World Creativity and Innovation Day, this platform is dedicated to inspire people who get to see, through the startup stories, how creativity and innovation can solve global problems.” 

LiveBuzz invites blog posts from innovators and start-up founders that are first-hand accounts of their innovations and experiences.

Crude oil futures plunges into negative, but MCX seeks interim settlement at Re 1

Crude oil futures contract price may have plunged into negative territory in the international market, but India’s leading commodity exchange MCX has fixed an interim settlement price of Re 1 per barrel — a move some traders said would help big brokers avert losses amounting to hundreds of crores of rupees at the cost of others having taken a short position.

Officials said capital market regulator SEBI is aware of the situation and is actively looking into the issue, while the matter has reached the government authorities as well, and they want an immediate action if the exchange has acted against regulations or was trying to benefit any particular trader at the cost of others.

Sensex down, US oil prices at historic lows

Market benchmark is trading down by 2.8 percent amid weak global cues led by US oil prices crash, said Sundar Sanmukhani, head-fundamental research desk, Choice Broking.

“US crude bounced back to positive territory, after a historic fall below zero that weakened investor sentiments. Sectorially, Barring Pharma all indices are trading in red. Dr Reddy, Cipla, Sun Pharma and Nestle are leading the gains in Tuesday’s session,” Sanmukhani said.

RBI asks banks to extend 2% interest subvention, 3% PRI on short-term crop loans

Sensex plummets over 1,100, Nifty down 326 points

The Sensex plunged 1180.84 points or 3.73 percent to 30,467.16 while the Nifty was down 325.85 points or 3.52 percent at 8,936 at around 12.45 pm.

Except pharma, all other sectoral indices are trading lower.

CBRE launches digital platform to list commercial properties in India

Global property consultant CBRE on Tuesday launched a digital platform in India for listing of commercial properties. 

CBRE South Asia said the new platform will display available commercial spaces including office, flexible workspace, retail and industrial & logistics. To begin with, it will cater to varying business demands across 10 cities in India.

The website has more than 2,500 listings at the time of launch across 10 cities. CBRE did not mention the charges for listing of commercial properties on its platform.

RINL shuts down two blast furnaces at Visakhapatnam plant

State-run steel maker RINL has shut down two blast furnaces at its Visakhapatnam plant, as a result of which the daily production level has come down to 6,000 tonnes, a source said.

After shutting down the first blast furnace last month, the company has shut down the second blast furnaces also last week reducing its production further to 6,000 tonnes, a source said.

There is a lack of demand in the market and given the scenario its is imperative to scale down the production, the source said.

Tech Mahindra, IBM to help clients modernise operations leveraging Cloud

Tech Mahindra is collaborating with IBM to help businesses transform their operations and accelerate their hybrid cloud strategies.

The tech firm will help clients migrate core business applications to the IBM public cloud using IBM Cloud Paks.
 

As part of this relationship, IBM and Tech Mahindra will establish innovation centres designed to help address complex business problems across industries, including telecommunication, manufacturing, financial services, insurance, retail and healthcare.

The first centre is planned to open in Bengaluru later this year and specialise in transformation solutions built with IBM Cloud Paks, enterprise-ready containerized software solutions running on Red Hat OpenShift.

Tech Mahindra currently plans to open additional centers throughout North America and the United Kingdom in 2020.

Cipla pledges Rs 25 cr donation to govt for fighting COVID-19 

Drugs maker Cipla on Tuesday said it has pledged Rs 25 crore to support government in combating the coronavirus pandemic.

This includes a voluntary donation of around Rs 3 crore from Cipla employees who have stepped forward in this hour of national need, the drug maker said in a regulatory filing.

As part of Rs 25 crore, the company has announced a donation of Rs 9 crore to the PM CARES Fund, it added.

In addition, the company has announced a donation of Rs 8 crore to various state authorities, Cipla said.

Reliance gives up most gains of last three sessions

Rahul Arora joins McAfee India

Rahul Arora has joined McAfee India as Sales Director, India and South Asian Association for Regional Cooperation (SAARC).

As a key part of the India leadership team, Rahul will be responsible for leading sales teams and technical experts, to help drive the cloud security market within India.

At McAfee, he will be instrumental in building a strong pipeline, ensuring solid sales execution, and drive customer relationships to achieve sustainable growth.

Commenting on Rahul’s appointment, Sanjay Manohar, MD, McAfee India said, “McAfee is committed to making the cloud environment secure for businesses across verticals and Rahul’s wide experience with cloud-based products will help us to accelerate cloud security adoption in the region. Rahul will be a critical team member in executing our sales strategy and enabling transformation journeys for our customers.”

Indices extend losses as Sensex plunges 980 points, Nifty below 9,000-mark

The market extended losses in the afternoon trade as the Sensex plummeted 979.76 points or 3.10 percent to 30,668.24 while the Nifty was down 271.80 points or 2.93 percent at 8,990.05 at around 12.15 pm.

IndusInd Bank was the top loser in the Sensex pack plunging nearly 13 percent.

Crude costs money again after shock crash

US crude oil bounced back into positive territory on Tuesday, but a historic plunge below zero rattled investors and triggered the steepest drop in Asian stock markets in a month. Traders could not give away West Texas Intermediate overnight after a storage squeeze turned holders of the contracts expiring later on Tuesday to forced sellers.

A $39 rise leaves the price for May delivery at $1.38 per barrel and investors unnerved about further dislocation.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 2 percent, as did the Nikkei, EuroSTOXX 50 futures and FTSE futures. E-mini futures for the S&P 500 fell 0.5 percent, while bonds and the dollar rose.