Stock Market Latest Updates: Indices end 3-day losing streak, Sensex up 167 points, Nifty above 8,850; Bharti Airtel at record high

Govt to further revise criteria for classifying ‘medium’ enterprises: Nitin Gadkari

Days after changing the definition of MSMEs, the government has decided to further revise the criteria for medium units by enhancing the investment and turnover limits to up to Rs 50 crore and Rs 200 crore respectively, Union Minister Nitin Gadkari said on Tuesday.

Unveiling the contours of the Rs 20 lakh crore stimulus package, Finance Minister Nirmala Sitharaman had last last week announced a change in the definition of micro, small and medium enterprises (MSMEs).

As per the revised definition, any firm with investment up to Rs 1 crore and turnover under Rs 5 crore will be classified as “micro”.

A company with investment up to Rs 10 crore and turnover up to Rs 50 crore will be classified as “small” and a firm with investment up to Rs 20 crore and turnover under Rs 100 crore will be classified as “medium”.

German footwear maker to shift production to India from China

Casa Everz Gmbh, the owner of Germany-based healthy footwear brand Von Wellx, will be shifting its entire shoe production of over three million pairs annually in China to India with an initial investment of Rs 110 crore, according to a top official of the company’’s licensee Iatric Industries Pvt Ltd.

A new manufacturing unit will be set up with a production capacity of over three million pairs in Uttar Pradesh through a collaboration with Iatric Industries Pvt Ltd as part of an understanding with the state government.

“Yes, after multiple rounds of discussions, Casa Everz Gmbh has decided to shift its entire production from China to India,” Iatric Industries Pvt Ltd Director and CEO Ashish Jain told PTI in an e-mailed response.

Casa Everz Gmbh had two manufacturing units in China with an annual capacity of over 3 million pairs.

SBI employees commit additional Rs 8 cr towards PM-CARES Fund

Employees of State Bank of India (SBI) have decided to contribute an additional amount of Rs 7.95 crore to the Prime Minister’’s Citizen Assistance and Relief in Emergency Situations (PM-CARES) Fund as part of their effort to fight the COVID-19 crisis.

The donation made by SBI employees by letting go of one day’’s salary and a day’’s leave encashment totals at Rs 107.95 crore, the country’’s largest lender said in a statement.

In March, around 2,56,000 employees of SBI donated Rs 100 crore to the PM-CARES Fund that is created to fight the coronavirus pandemic, it said.

SBI has also committed 0.25 percent of its annual profit of 2019-20 towards CSR (corporate social responsibility) activities to fight the COVID-19 pandemic, it said.

Bharti Airtel stock jumps to record high

#CNBCTV18Market | Bharti Airtel at record high after strong Q4 earnings and positive management commentary pic.twitter.com/MhxYya4HU8

— CNBC-TV18 (@CNBCTV18Live) May 19, 2020

Coronavirus Outbreak: Pandemic to inflict Rs 76 lakh cr loss on realty sector, says KPMG

The consequent loss of COVID-19 pandemic outbreak to India’s real estate sector is estimated to be $1 trillion (about Rs 76 lakh crore) by the end of the current financial year, according to a new report by global professional services firm KPMG released on Tuesday.

“Supporting the economic contribution through more than 250 industries, the real estate sector in India will be temporarily and ominously handicapped by the ongoing pandemic,” said the report titled ‘COVID-19: React, adapt and recover – The new reality.’

The short-term impact in coming 6 to 12 months is likely to be a dampener for real estate sector’s recovery, forcing sector entities to contract operations, revisit planned developments, expansions, and investments across the real estate sector.

Counter strategies to mitigate the impact will likely focus on cost optimisation, liquidity improvement, space design and layout efficiency maximisation, re-negotiations of contracts, and calibration of business operating models across the board.

Nine NBFCs surrender certificate of registration

Nine NBFCs, including Reliance Net and Nischaya Finvest Private Limited, have surrendered their certificate of registration, the Reserve Bank of India said on Tuesday.

Penrose Mercantiles Ltd, Manohar Finance India Ltd, Chandelier Tracon Pvt Ltd, and Sanghi Hire Purchase Ltd are among the NBFCs which have surrendered their certificates.

The certificate of registration is granted by the RBI.

With surrendering the certificates, the companies cannot transact the business of a non-banking financial institution.

Fiat, Tata Motors JV plant resumes operations at Ranjangaon

Fiat India Automobiles Pvt Ltd (FIAPL) on Tuesday said Ranjangaon-based manufacturing facility, co-owned by it and Tata Motors, has resumed operations.

The plant is a 50:50 joint venture between Fiat Chrysler Automobiles (FCA) India and Tata Motors. The facility is located in Maharashtra.

FIAPL’s management has developed and implemented a comprehensive programme of safety measures to protect over 3,000 direct and indirect employees, their families and surrounding communities from the spread and transmission of COVID-19, the automaker said in a statement.

Need for home broadband likely to surge: Airtel

#4QWithCNBCTV18 | Strongest growth in over a decade in India mobile revenues; seeing rapid surge in the need for home broadband, says @airtelindia pic.twitter.com/Wbs4gJkqSc

— CNBC-TV18 (@CNBCTV18Live) May 19, 2020

Indices give up early gains; Sensex rises 91 points, Nifty at 8,856

Indices erased the early gains as Sensex was trading 90.88 points or 0.30 percent higher at 30,119.86 while the broader Nifty was up 33.25 points or 0.38 percent at 8,856.50 at around 2.45 pm.

Despite giving up the gains, the market was trading in the green zone while Nifty Bank slipped into the red. 

Bharti Airtel was the top gainer in the Sensex pack surging over 10 percent.

S&P recovery will be far faster than 2008: Citigroup

US stock markets will deliver among the steepest recoveries in their history over the next year, returning to levels from before March’s coronavirus lockdowns more than twice as fast as after the 2008 financial crisis, according to analysts from US bank Citigroup.

In a note to clients dated Monday, the bank forecast the S&P 500 .SPX index and Dow Jones Industrial Average .DJI index would stand at 3,160 points and 28,400 points respectively in June 2021, up about 7 percent and 15.5 percent from current levels.

The forecast is among the most bullish among U.S. market forecasters, many of whom are forecasting next to no gains for the next 12 months.

FPIs rush to exit India; withdraw $6.4 bn in March quarter 

Foreign investors turner net sellers in March quarter and pulled out $6.4 billion from the Indian equity markets largely due to the COVID-19 outbreak and ensuing risk-averse environment, a Morningstar report said.

In comparison, foreign portfolio investors (FPIs) bought net assets worth USD 6.3 billion in three months ended December 2019.

FPIs were net buyers in January ($1.71 billion) and February ($265 million). They, however, went on a selling spree in March as they sold net assets worth $8.4 billion.

“The uncertainty over the gravity of the pandemic’s impact on the global economy and financial markets worldwide triggered a flight to safety among foreign investors as they rushed to exit from relatively riskier investment destinations, such as emerging markets like India,” the report noted.

Nesco Q4 profit up

#4QWithCNBCTV18 | Nesco's operating margins fall substantially in the fourth quarter from the same quarter last year pic.twitter.com/ToZvwR7ZHl

— CNBC-TV18 (@CNBCTV18Live) May 19, 2020

Mitsubishi Motors’ annual profit tumbles, refrains from issuing forecast

Mitsubishi Motors Corp posted on Tuesday an 89 percent drop in annual operating profit for its weakest performance in three years and skipped the year-end dividend, as the coronavirus outbreak added to the Japanese automaker’s profitability woes.

Profit came in at 12.8 billion yen ($119.21 million) for the year ended in March, down sharply from 111.8 billion yen a year ago. Still, it exceeded a consensus estimate of 9.4 billion yen profit drawn from 15 analysts polled by Refinitiv.

Mitsubishi, one of Japan’s smaller automakers, declined to give an earnings forecast for the current business year, as it waits to get a better view of the longer term impact of the coronavirus on its operations and sales.

UK unemployment claims surge 69% as pandemic takes hold

Unemployment claims in Britain jumped 69 per cent in April, as the COVID-19 pandemic took hold and hit the labor market, UK authorities said Tuesday.

The Office of National Statistics says jobless claims surged by 856,000 to 2.1 million in April as compared to the month before. The figures covered only the first weeks of the lockdown, said Jonathan Athow, deputy national statistician for economic statistics at the ONS.

“In March, employment held up well, as furloughed workers still count as employed, but hours worked fell sharply in late March, especially in sectors such as hospitality and construction,’’ he said.

Work and pensions secretary Therese Coffey told the BBC that the government was focused on those claiming benefits under Universal Credit, a welfare payment for those who need help, including the unemployed.

India resumes purchases of Malaysian palm oil: Traders

Indian buyers have resumed purchases of Malaysian palm oil after a four-month gap following a diplomatic row, with buying spurred by a fall in domestic inventories and discounted prices, trade sources said.

The renewed purchases come amid improving trade relations between the two countries after the formation of a new government in Kuala Lumpur, with Malaysia signing a deal last week to buy a record 100,000 tonnes of Indian rice.

Leading Indian importers last week contracted up to 200,000 tonnes of crude palm oil from Malaysia, the world’s No.2 producer after Indonesia, to be shipped in June and July, the sources told Reuters.

Govt procurement portal GeM adds 4,316 products made by tribal communities

Government departments, agencies and public sector units can now procure products made by tribal communities from the GeM portal as it has added over 4,000 such items, including paintings, handmade showpieces and statues.

The commerce ministry launched Government e-Marketplace (GeM), an online platform for public procurement, in August 2016 with the objective of creating an open and transparent procurement platform for the government.

As many as 1,000 self help groups (SHGs) too have registered on the platform with over 500 products in categories such as handicraft, handloom and textiles, office accessories, grocery and pantry and personal care and hygiene.

“Tribal Cooperative Marketing Development Federation of India (TRIFED) has uploaded 4,316 products across 48 different categories – paintings, handmade showpieces and statues, handcrafted hand bags and sling bags and more such products are being added,” GeM CEO Talleen Kumar said.

Gold futures drop marginally on weak spot demand

Gold futures on Tuesday fell 0.1 percent to Rs 46,610 per 10 gram as participants offloaded their holdings on weak spot demand.

On the Multi Commodity Exchange, gold prices for June delivery fell by Rs 45, or 0.1 percent, to Rs 46,610 per 10 gram in a business turnover of 11,754 lots.

The yellow metal for August delivery declined by Rs 32, or 0.07 percent, to Rs 46,880 per 10 gram in 9,418 lots.

However, gold was trading 0.13 percent up at $1,736.60 per ounce in New York.

Rupee rises 27 paise to Rs 75.63 at close 

#Rupee ends higher Vs Monday's closing of 75.90/$ pic.twitter.com/oxveWKdMcd

— CNBC-TV18 (@CNBCTV18Live) May 19, 2020

Godfrey Phillips’ arm partially resumes production at Ghaziabad plant

Cigarettes and tobacco products major Godfrey Phillips India on Tuesday said its has wholly-owned arm International Tobacco Co Ltd has partially resumed manufacturing operations at Ghaziabad plant after relaxation in lockdown guidelines.

International Tobacco Co Ltd, which does contract manufacturing exclusively for the company, resumed partial operations with restricted capacity and manpower at its Ghaziabad factory, Godfrey Phillips India (GPI) said in a regulatory filing.

“However, the company’’s own cigarette factory in Maharashtra and pan masala factory in Uttar Pradesh still remain closed,” GPI added.

The company had on March 30 informed the bourses about suspension of its manufacturing operations due to the lockdown on account of the coronavirus pandemic.

Indices trim gains; Sensex up 291 points, Nifty holds 8,900-level 

Indices gave up most of the gains as Sensex was trading 290.77 points or 0.97 percent higher at 30,319.75 while the broader Nifty was up 91.30 points or 1.03 percent at 8,914.55 at around 1.40 pm.

Bharti Airtel was the top gainer in the Sensex pack surging over 9 percent. 

ONGC, Ultra Cement, ITC, M&M, NTPC and PowerGrid were also in the gainers’ list.

IndusInd Bank, Axis Bank, SBI, HUL, Reliance and HDFC Bank were the losers.

Women SHGs make 39 lakh masks, 10,000 litre sanitiser in Chhattisgarh

Women self-help groups in Chhattisgarh have so far produced over 39 lakh face masks and nearly 10,000 litres of hand sanitisers to cater to the increased demand of these items following the coronavirus outbreak, an official said on Tuesday.

Nearly 7,625 women from 2,165 self-help groups (SHGs), associated with the government-run Chhattisgarh State Rural Livelihood Mission, are engaged in preparing masks in 27 districts of the state since last two months, the mission’’s Chief Operating Officer Alice Lakra told PTI.

The process was started in the last week of March, just after the lockdown was enforced to contain the spread of coronavirus.

Till Monday, these SHGs have made 39,08,811 masks. Out of this, maximum masks were manufactured in Koriya district (4,10,290), followed by Rajnandgaon (3,74,943), Bemetara (3,50,705) and Gariaband (3,12,550), Lakra said.

Markets holding on to gains at half-time

The Indian markets at half time are still holding on to its gains reversing part of the losses witnessed in the previous session, said Aditya Agarwala, Senior Technical Analyst, YES Securities.

“However, Nifty failed to breach the resistance zone of 9,040 leading to minor profit booking from the high point of the day. Moreover, if bulls manage to keep the Index above the 8,900 mark then fresh round of short covering rally may emerge in the late trade taking the Index to levels of 9,040 and a sustained trade beyond that to levels of 9,130,” he said.

However, failure to keep the neck above 8900 may lead to more downside dragging the Index to levels of 8820. Broader markets continue to underperform while auto, metal and private banks are leading the charge on Tuesday, said Agarwala.

“PSU banks and realty stocks continue to remain under pressure. European markets have opened on a flat note,” he added.

CAIT says 4.5 cr shops open across India; urges Delhi govt to reconsider odd-even plan

Traders’ body CAIT said around 4.5 crore shops opened across the country on Tuesday and called for a sanitisation drive by municipal corporations to ensure cleanliness of the markets.

In a letter to Delhi Chief Minister Arvind Kejriwal and Lt Governor Anil Baijal, the Confederation of All India Traders (CAIT) urged them to reconsider the odd-even formula for shop opening, observing that only 5 lakh shops could open in city owing to the arrangement.

CAIT, however, said no business occurred in commercial markets across the country including Delhi as traders opened their shops after a long period owing to the lockdown; and therefore, were engaged in cleaning and sanitisation.

It also cited acute shortage of workers engaged in shops, saying more than 70 percent of the workforce has migrated to their native villages.

Committed to paying full variable payout, bonus for FY20: HCL Tech 

HCL Tech says company is committed to paying full variable payout, bonus for FY20. It will will review promotions from July 1 & for senior level by October pic.twitter.com/n4HdWfjBDo

— CNBC-TV18 (@CNBCTV18Live) May 19, 2020

IndiGo to share weather data with IMD

Amid the coronavirus-triggered lockdown, IndiGo said on Tuesday its aircraft will provide crucial data on wind, humidity and temperature during all flight operations to the India Meteorological Department (IMD) to help it make accurate weather predictions.

“The data, which is imperative for accurate predictions of weather, has been unavailable to the IMD since a majority of flights are out of operation due to the nationwide lockdown, coupled with staff constraints,” the budget carrier said in a press release.

IndiGo said it has incorporated a plan for its pilots to report high level wind and temperatures at different stages of a flight as desired by the IMD across all flight operations.

PSBs sanction loans worth Rs 6.45 lakh cr during 1 March-15 May

State-owned banks have sanctioned about Rs 6.45 lakh crore worth loans to various sectors including MSME, agriculture and retail between 1 March and 15 May when businesses were reeling under the impact of COVID-19 crisis.

Loans sanctioned at the end of 8 May stood at Rs 5.95 lakh crore.

“Loans worth over Rs 6.45 lakh crore were sanctioned by PSBs during 1 March – 15 May for 54.96 lakh accounts from MSME, Retail, Agriculture & Corporate sectors; A notable increase compared to the Rs 5.95 lakh crore sanctioned as of 8 May,” Finance Minister Nirmala Sitharaman said in a tweet.

“Public Sector Banks sanctioned over Rs 1.03 lakh crore as emergency credit lines & working capital enhancements in the period 20 March to 15 May, which is a substantial increase over the Rs 65,879 crore that had been sanctioned up to 8 May,” she said.

Sensex up 554 points, Nifty close to 9,000-mark 

Indices erased some of the early gains as Sensex was trading 554.20 points or 1.85 percent higher at 30,583.18 while the broader Nifty was up 165.05 points or 1.87 percent at 8,988.30 at around 12.45 pm.

Benchmark indices continue to remain in the green zone supported by auto, bank and metal stocks.

Bharti Airtel, ONGC, Ultra Cement, Kotak Mahindra Bank, Tata Steel, M&M, Tech Mahindra, ITC, NTPC, Sun Pharma, and HDFC were the top gainers in the Sensex pack.

Natco donates Chloroquine for international study to prevent SARS-CoV-2 infection

Natco Pharma Ltd said on Tuesday it has donated Chloroquine phosphate tablets through its marketing partner in the United States Rising Pharmaceuticals to support a global clinical trial conducted by the CROWN Collaborative for protecting essential healthcare workers from COVID-19 virus.

Washington University School of Medicine in St Louis is the clinical coordinating centre for this ambitious international trial.

The group called the COVID-19 Research Outcomes Worldwide Network (CROWN) Collaborative is testing whether the anti-malaria drug Chloroquine can prevent COVID-19 infection or decrease its severity in frontline healthcare workers.

Govt against GST waiver to spur demand

After receiving several representations to waive #GST on mass consumption products for spurring demand, Govt sources say it is not an option.@TimsyJaipuria with more details pic.twitter.com/uL9mRvFFOJ

— CNBC-TV18 (@CNBCTV18Live) May 19, 2020

Australia disappointed over China’s tariffs of 80% on its barley

Australia’s trade minister has described as “deeply disappointing” China’’s imposition of tariffs of around 80 percent on Australian barley in a dispute that has been linked to Australian support for a coronavirus inquiry.

The tariffs come a week after China banned beef imports from Australia’s four largest abattoirs over labeling issues. Trade Minister Simon Birmingham says Australia could appeal to the World Trade Organisation to resolve both disputes.

In Beijing, foreign ministry spokesman Zhao Lijian says China is looking into trade issues between the sides in accordance with related laws and WTO rules.

Flipkart partners Vishal Mega Mart for home delivery of essentials

Walmart-owned Flipkart on Tuesday said it has partnered with retail store chain, Vishal Mega Mart for home delivery of essential items in 26 cities in the country, including Delhi-NCR, Bengaluru and Kolkata.

Under the partnership, consumers will be able to order products from over 365 Vishal Mega Mart stores and get them delivered at their doorstep by Flipkart, a statement said.

As part of the alliance, a Vishal Mega Mart Essentials store has been created on Flipkart’’s platform. Consumers can order essential products like flour, rice, oil, pulses, beverages and other items from various brands as well as Vishal’’s own labels.

“The products will be available as per the Government guidelines across all zones. Once a consumer places an order through the Flipkart app, the delivery executives or Wishmasters will collect the products from the nearest Vishal store and deliver it at the customer’’s doorstep safely,” it added.

Lendingkart raises Rs 320 cr equity funding 

Lendingkart Technologies on Tuesday said it has raised about Rs 320 crore in an equity funding round led by existing investors including Fullerton Financial Holdings Pte Ltd (FFH), Bertelsmann India Investments, Sistema Asia Fund and IndiaQuotient.

The series D round comprised two tranches – Rs 233 crore as part of D1, and Rs 86.24 crore in D2 fund-raise, according to a company statement.

Lendingkart has raised over Rs 1,050 crore of equity capital from investors till date.

This funding will be deployed to expand the company’’s lending base and further reach out to small and underserved micro and small enterprises, and to further strengthen the company’’s technological and analytics capabilities, the company said.

Sunil Mittal’s Bharti SBM Holdings, Singapore govt buy AU Small Finance Bank stocks

Sunil Mittal’s Bharti SBM Holdings bought 24 lakh shares, the Government of Singapore bought 19 lakh shares and Monetary Authority of Singapore bought 5.3 lakh shares.https://t.co/RgkNj4DkLo

— CNBC-TV18 (@CNBCTV18Live) May 19, 2020

Automakers help restart US industry as globe reopens further

More than 130,000 autoworkers returned to factories across the US for the first time in nearly two months Monday in one of the biggest steps yet to restart American industry, while an experimental vaccine against the coronavirus yielded encouraging results in a small and extremely early test.

Stocks rallied on the vaccine news and signs that the worst of the crisis has passed in many countries. The Dow Jones Industrial Average soared about 900 points, or nearly 4 percent.

In a surprise announcement, President Donald Trump said he’s been taking a malaria drug to protect against the virus even though his own administration has warned it should only be administered in a hospital or research setting because of potentially fatal side effects.

Automakers from Detroit’’s Big Three — Fiat Chrysler, General Motors and Ford — to Honda and Toyota put screening procedures in place at the dozens of factories that reopened from the Great Lakes states south to Tennessee and Texas and out west to Tesla’’s factory near the San Francisco Bay.

Sensex zooms 603 points, Nifty above 8,900-mark 

Indices continued to remain in the green zone as Sensex was trading 603.35 points or 2.01 percent higher at 30,632.33 while the broader Nifty was up 173 points or 1.96 percent at 8,996.25 at around 11.50 am.

Bharti Airtel was the top gainer in the Sensex pack surging over 9 percent. 

Other gainers included ONGC (6.72 percent), Kotak Mahindra Bank (4.87 percent), Tata Steel (4.47 percent), Ultra Cement (3.92 percent) and ICICI Bank.

Nestle India and HUL were the gainers.

Nearly 63% Indian professionals to increase time spent on online learning: LinkedIn

More than three in five or 63 percent of Indian professionals will increase their time spent on online learning in future, according to LinkedIn’s finding of its third workforce confidence index released on Tuesday.

Based on survey findings of 2,323 respondents, the index also shows India’s cautious optimism towards future opportunities with a composite score of plus-50 (a rolling average of weeks 13 to 19 April and 27 April  to 3 May 3).

This fortnight’s findings show that professionals are increasing their time spent on online learning as a response to remote working, a shrinking job market, the need for upskilling, and the need to stay mindful through these challenging times.

About 60 percent of them want to gain more industry knowledge, 57 percent want to learn how they can advance in their careers and 45 percent want to better their communication capabilities through online learning.

Tata Consumer Products rises over 3%

#CNBCTV18Market | Tata Consumer at day's high pic.twitter.com/cWELyivDVs

— CNBC-TV18 (@CNBCTV18Live) May 19, 2020

Migration of labourers hits bakery units in Mumbai

The bakery business in Mumbai has been badly hit as a number of migrant labourers have gone back to their native places amid the coronavirus-induced lockdown.

Some of those in the business fear that if this situation continues for some more time, there may be shortage of bakery products in the city.

During a visit to ‘‘Metro Bakery’’ in Kurla area, its owner Habib Ansari was found busy making toast and khari (a fluffy baked snack) along with his son-in-law and two labourers.

“I have completely shut one of my bakery outlets while I am running this unit with only four people, including myself. I am in this business since last four decades but never saw such a situation in my life,” Ansari told PTI.

Khurshid Ansari, who has a bakery at Mumbra in neighbouring Thane district, said seven to eight bakeries have closed in the area in a week’’s time since labourers started leaving for their native places in Uttar Pradesh.

Businessman Haroon Siddique said earlier he used to supply yeast ((a leavening agent used in baking) to about 70 bakeries in Mumbai.

“But, in the last one week, 61 bakeries have stopped production and the units closed after labourers left the city,” he said.

Rupee at day’s high

#CNBCTV18Market | #Rupee at high point of the day as $ slips further

NOTE: Refer chart as per $ pic.twitter.com/Cn2o5i8P2X

— CNBC-TV18 (@CNBCTV18Live) May 19, 2020