Stock Market Latest Updates: Sensex plummets 886 points, Nifty below 9,150-mark; Tech Mahindra, Infosys among top losers

BMS announces protests against suspension of labour laws

Rashtriya Swayamsevak Sangh (@RSSorg)-backed trade union Bharatiya Mazdoor Sangh (BMS) condemns suspension of #LabourLaws in Gujarat, Madhya Pradesh & Uttar Pradesh, announces nationwide protests pic.twitter.com/lKOvuBlM4X

— CNBC-TV18 (@CNBCTV18Live) May 14, 2020

Major setback for Vijay Mallya

UK Home Secretary to take a final call on @TheVijayMallya's extradition pic.twitter.com/ypH278WHQM

— CNBC-TV18 (@CNBCTV18Live) May 14, 2020

UN experts hail India’s ‘impressive’ stimulus package to revive economy

Top UN experts have hailed as ‘impressive’ India’s Rs 20 lakh crore stimulus package, the largest so far among the developing countries, to revive its economy, which has been severely hit by the coronavirus-triggered lockdown.

Prime Minister Narendra Modi on Tuesday announced massive new financial incentives on top of the previously announced packages for a combined stimulus of Rs 20 lakh crore ($260 billion).

While launching the World Economic Situation and Prospect (WESP) report update on Wednesday, chief of the Global Economic Monitoring Branch Hamid Rashid told reporters in response to a question that the stimulus package announced by the Indian government on Tuesday “is a very welcome development.”

He said the Rs 20 lakh crore package, which is 10 percent of India’s GDP is the “largest so far in the developing countries” because most developing countries have been rolling out stimulus packages that are between 0.5 percent and 1 percent of the GDP.

Stimulus package to ease pain of MSMEs

The government’s announcements are significant steps in easing the economic pain of MSMEs, said Ram Iyer, founder and CEO, Vayana Network.

As the economy comes back to life over coming weeks, arranging liquidity and meeting expenses will be key challenges for every MSME. The package announced on Wednesday is unprecedented in both magnitude and the mechanism, he said.

“The Rs 3 lakh crore package will enable immediate access to additional lines from banks to MSMEs. The 1-year moratorium will ensure that SMEs can focus on immediate exigencies and bring their business back to life and not worry about interest and repayments,” Iyer said

Hero Electric announces 3-day return offer on its products

Hero Electric announced a first-of-its kind 3-day return offer (T&C apply) on all its products (excluding Flash lead-acid low speed model) purchased during the online scheme only. Customers will be refunded the complete amount if they return the product within three days of purchasing. 

In a statement, the company said, it has introduced the second phase of its online offer on its products till 31 May.

All customers who book any Hero Electric scooter (excluding Flash lead-acid low speed model) can avail an instant cash discount of Rs 4,000 while customers of Glyde would get a cash discount of Rs 3,000.

The booking amount is fixed at Rs 2,999, irrespective of the model. Since a substantial part of Hero Electric’s sale comes from referrals, the customers will be offered a token of appreciation in the form of Rs 1,000 voucher for referral sales.

Our responsibility to define ‘re-invent India’ strategy: Tech Mahindra

The Rs 20 lakh crore economic package will definitely give the impetus to the economy, industry and society, said CP Gurnani, MD & CEO, Tech Mahindra.

However, as every business is thinking of re-inventing itself to be future-ready, it is our responsibility as a country to define that ‘re-invent India’ strategy, define the role of each of the pillars (economy, infrastructure, technology-driven system, vibrant demography and demand) laid down by the government, break down old policies and re-write collaboration between the private and public sector, he said.

The government is playing the role of an investor to create physical and digital infrastructure, create global standard academic institutions in Artificial Intelligence and data science, nurture local firms to create telecom infrastructure, cyber security global leaders, Gurnani added.

“There was an independence in 1947; now that the fuel has been provided, let’s make 2020 the year when we get independence from a non-digital world to make India truly a global digital leader in every aspect, so that both, the common man and businesses from India come out resilient and self-sufficient,” he said.

L&T stock rises

#CNBCTV18Market | Sharp rise in L&T, stock turns positive pic.twitter.com/R6uuJPsLYv

— CNBC-TV18 (@CNBCTV18Live) May 14, 2020

Sensex nosedives 858 points, Nifty slips below 9,150 

Sensex plunged 858 points or 2.68 percent to 31,150.61 while Nifty was down 235.45 points or 2.51 percent at 9,148.10 at around 3.10 pm.

Dubai airport CEO: Global travel still up in air over virus

The CEO of the world’’s busiest airport for international travel wants to get the globe flying again, but even he acknowledges everything remains up in the air during the coronavirus pandemic.

Paul Griffiths oversees what now is a much quieter Dubai International Airport, home to the long-haul carrier Emirates and crucial to East-West travel. The millions that once poured through the airport’’s concourses are no longer flying as countries around the world enforce lockdowns and travel bans to fight the virus and the COVID-19 illness it causes.

Though government-owned Emirates plans to restart some flights next week, Griffiths told The Associated Press that the airport has yet to find a workable coronavirus or antibody test to administer on a massive scale to passengers. Until a vaccine or a permanent solution to the virus exists, there could be “quite a low level of activity for quite some time,” he said.

“I think the thing is there are a lot of people that are offering conjecture, whether it’’s 18 months or two years or less or more," Griffiths said in an interview Wednesday.

Tata Trusts upgrading 4 govt hospital buildings into COVID-19 treatment centres

Tata Trusts on Thursday said it is upgrading four government hospital buildings, two in Uttar Pradesh and two in Maharashtra, into COVID-19 treatment centres.

The facilities, including both in-patient and out-patient wings, are permanent and will enhance healthcare in the locations even after the immediate purpose is met, Tata Trusts said in a statement.

The hospitals in Maharashtra are at Sangli with 50 beds and Buldhana with 106 beds. The hospitals in Uttar Pradesh are at Gautam Buddha Nagar with 168 beds and Gonda with 106 beds, it added.

The company is attempting to hand over the facilities by 15 June 2020.

The treatment centres in Uttar Pradesh are in collaboration with a partner organisation, it added.

RBI may have to monetise around Rs 7 lakh cr of stimulus package: BofA

The government may have to ask the RBI to monetise around Rs 6.8 lakh crore of the total economic package announced by Prime Minister Narendra Modi so as to complete the funding under the package, Bank of America Securities (BofA) said in a note on Thursday.

On Tuesday, the Prime Minister announced a Rs 20 lakh crore package to mitigate the hardships inflicted by the COVID-19 pandemic.

“Of the nearly 10 percent of GDP worth stimulus, 7.3 percentage points of it can be funded through many means. But the balance 2.7 percentage points or Rs 6.8 lakh crore of it will likely need to be monetised by the RBI,” BofA said.

Explaining how BofA expects the government to fund this amount without too badly hurting fiscal balance, its India economists Indranil Sen Gupta and Aastha Gudwani opined that RBI has already funded exactly a quarter (250 basis points) of it through LTROs, TLTROs, the 100 basis points CRR cut, and credit lines.

Escorts stock dips

#4QWithCNBCTV18 | Escorts’ Q4 cons net profit up 9.6% at Rs 127.9 cr Vs Rs 116.7 cr (YoY) pic.twitter.com/7CDUF1xChQ

— CNBC-TV18 (@CNBCTV18Live) May 14, 2020

Tax on dividend, rent, insurance payment cut by 25%

Tax deducted on payment of dividend, insurance policy, rent, professional fee and on the acquisition of immovable property has been cut by 25 percent for a period up to 31 March, the tax department has said.

Following Finance Minister Nirmala Sitharaman’s announcement of a reduction in the rate of tax deducted at source (TDS) and tax collected at source (TCS) for non-salaried payments, the Central Board of Direct Taxes (CBDT) notified revised rates that will be applicable from 14 May 2020, to 31 March 2021.

Announcing a slew of measures to help companies and taxpayers tide over hardships caused by coronavirus lockdown, Sitharaman had on Wednesday stated that the reduction in TDS/TCS rate would release about Rs 50,000 crore in the hands of people.

In the notification, the CBDT said while TCS on sale of the motor vehicle above Rs 10 lakh has been cut to 0.75 percent from 1 percent earlier, TDS on 23 items has been reduced.

CIL mandated to replace at least 100 MT of imports with domestic coal in FY21

State-owned CIL has been mandated by the government to replace at least 100 million tonne (MT) of imports with domestically-produced coal in the ongoing fiscal.

The development comes at a time when the country on the one hand has abundance of domestic coal, while on the other hand there is a slump in demand of the dry fuel.

“Coal India (CIL) has a mandate of replacing at least 100 MT of imported coal with domestic non-coking coal in the financial year 2020-21,” an official said.

In its bid to substitute imports with domestic coal, CIL is connecting with non-regulated sectors like sponge iron, cement, aluminium for domestic coal, the official said.

Gold futures surge on positive demand

Gold prices on Thursday rose by Rs 249 to Rs 46,230 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 249, or 0.54 percent, to Rs 46,230 per 10 gram in a business turnover of 13,377 lots.

The yellow metal for August delivery edged up by Rs 234, or 0.51 percent, to Rs 46,410 per 10 gram in a business turnover of 8,485 lots.

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

Sensex plunges 867 points, Nifty at 9,142-mark 

Sensex plummeted 867.14 points or 2.71 percent to 31,141.47 while Nifty was down 241.85 points or 2.58 percent at 9,141.70 at around 2.15 pm.

Infosys, IndusInd Bank, Tech Mahindra, HDFC and Reliance were the major losers in the Sensex pack.

Rupee down at close

#Rupee ends lower compared to Wednesday's close pic.twitter.com/Dz4lptV6Hy

— CNBC-TV18 (@CNBCTV18Live) May 14, 2020

Vodafone Idea launches voice-based contactless recharge initiative

Telecom operator Vodafone Idea on Thursday announced its voice-based contactless recharge facility at retail outlets to enable customers and retailers adhere to social distancing in the backdrop of the coronavirus pandemic.

As retail outlets in various orange and green zones across the country start to open, Vodafone Idea is ensuring complete implementation of social distancing protocol at its stores, the company said in a statement.

“This has been made possible through Vodafone Idea’’s Smart Connect retailer app which allows retailers to recharge without having to hand over the phone to the customer to enter their mobile number,” it said.

The customer or retailer can simply speak out the ten digit mobile number on the device and the Google voice-enabled feature will capture the command from a distance of up to ten feet, ensuring safety for both the sides.

RBI slaps Rs 5 lakh fine on UCO Bank for violating govt bond holding norms

Public sector lender UCO Bank on Thursday said the Reserve Bank has imposed a penalty of Rs 5 lakh for violating norms on government bond holding.

The Reserve Bank of India has imposed a penalty of Rs 5 lakh on UCO Bank for bouncing of SGL forms, the bank said in a regulatory filing.

A subsidiary general ledger (SGL) account is maintained with the RBI for holding government securities and treasury bills in paperless form. The account is used for facilitating delivery and payment trades.

Sensex slips 684 points, Nifty below 9,200-mark 

Indices extended the losses as Sensex was trading 683.87 points or 2.14 percent lower at 31,324.74 while Nifty was down 190.25 points or 2.03 percent at 9,193.30 at around 1.40 pm.

New Zealand plans spending spree to counter virus job losses

New Zealand’’s government plans to borrow and spend vast amounts of money as it tries to keep unemployment below 10 percent in the wake of the coronavirus pandemic.

Finance Minister Grant Robertson on Thursday unveiled a budget unlike any in the nation’’s history. Debt would shoot up from just over 20 percent of GDP to 54 percent by 2023, and thousands of jobs created by putting people to work building homes and improving the environment.

Still, the increased spending will not be enough to offset the economic devastation caused by the pandemic. Unemployment is expected to rise from just over 4 percent to nearly 10 percent by June.

And Robertson acknowledged that tourism, which had accounted for about 10 percent of the economy, was not going to be the same for many years to come.

ABB India Q1 profit drops to Rs 66 cr on COVID-19 impact

ABB India has posted a profit after tax of Rs 66 crore during the first quarter (January to March) due to lower volumes including service revenue and unfavourable mix.

In Q1 CY19, it had reported a profit after tax of Rs 89 crore.

The company reported a profit including exceptional items and before tax of Rs 87 crore. The resultant under-absorption and mark-to-market impact due to forex volatility were partly offset by refund incomes and a one-time gain on sale of solar business during the quarter.

Revenues for the first quarter stood at Rs 1,522 crore, impacted by lower sales, non-receipt of delivery clearance, lower service revenue in the nationwide lockdown due to the COVID-19 pandemic. This impact primarily occurred in March, the company said in a statement.

MakeMyTrip partners with hotels to launch online gourmet delivery service

Leading online travel firm MakeMyTrip on Thursday said it has partnered with premium hotel chains and independent properties in select cities across India to roll out online gourmet delivery service.

With dine-in experiences coming to a halt due to the coronavirus pandemic-triggered lockdown, the company aims to bring culinary experiences from top restaurants to the doorstep of customers in Delhi, Mumbai, Chennai and Bengaluru, MakeMyTrip said in a statement.

With a commitment of adhering to food safety and hygiene standards, MakeMyTrip will be delivering orders through third-party service providers in respective cities, it added.

Markets reeling under pressure at half-time

The Indian markets at half-time are still reeling under pressure in line with the global markets, said Aditya Agarwala, Senior Technical Analyst, YES Securities.

Further, bears have kept the Nifty Index firmly below the 20-DMA currently placed at 9260 and a sustained trade below this moving average resistance could generate bouts of selling which will drag the Index lower to levels of 9100 and then 9043, he said.

“However, bulls have also not given up ground entirely as they keep the Index above the 9200 level, a push beyond 9,260 level which is the 20-DMA resistance may trigger short covering rally taking the Index higher to levels of 9,350,” said Agarwala.

Broader markets are outperforming while bank, metal and realty stocks are pulling the headline indices down. Overall Nifty is stuck in a trading band between 9100-9450. European markets have opened in the red with cuts of 1 percent which could keep the upside capped, he said.

Discoms need to follow corporate governance norms: RP Singh

Condition of giving letters of credit to draw power has already made discoms more responsible, @RajKSinghIndia tells CNBC-TV18 in an #exclusive conversation pic.twitter.com/Z4UCRZz0GU

— CNBC-TV18 (@CNBCTV18Live) May 14, 2020

5paisa.com launches ‘5paisa Loans’ peer-to-peer lending platform

Fintech firm, 5paisa.com today said that it has launched ‘5paisa Loans’, a peer-to-peer lending platform, where one can lend from Rs 500 – Rs 50 lakhs to multiple borrowers and earn interest as high as 36% per annum.

5paisa Loans is a registered NBFC with Reserve Bank of India, offering Peer-to-Peer Lending solution with an aim to solve short-term cash requirements of borrowers.

Prakarsh Gagdani, CEO, said, “On our platform, we are bringing the old ways of lending and borrowing in latest avatar.  Our AI and tech driven credit underwriting approach, portfolio way of offering is unique in the industry.”

Capillary Tech, Increff ink pact for retailers

Capillary Technologies and INCREFF announced it has entered into a strategic partnership, combining Capillary’s expertise in omnichannel commerce technology with Increff’s inventory fulfillment, warehouse management and merchandising capabilities.

The Capillary-INCREFF partnership will enable retailers to create a unified omnichannel experience, allowing them to capture demand across all consumer channels including stores, brand websites, social channels and online marketplaces and fulfill the same via their warehouses, and more importantly from their retail stores.

Hindustan Foods resumes operations after receiving requisite permissions

Hindustan Foods (HFL) on Thursday said it has re-commenced its operations at different facilities after receiving requisite permissions from the concerned authorities.

At present, the operations at various facilities are not running at full capacities and the same will be ramped up in a phased manner, taking into account all the relevant factors which will be prevailing from time to time, it said.

The company has re-commenced its operations at various facilities, Hindustan Foods informed BSE.

The firm said that it was continuously supplying essentials like tea, coffee, detergents, shampoo and baby foods to all its customers, which is in line with government directives.

Amazon India claims has made nearly 100 changes in operations for safety
 

Amazon India has added close to 100 changes in its on-ground operations to maintain social distancing in its buildings and ensure safe deliveries for customers.

Following guidance from World Health Organization (WHO) and local authorities, Amazon India has adjusted its practices within all its operations sites including Fulfilment Centers, Sortation Centers and Delivery stations through new formats of communications, process changes, new training methods and several policy changes, the company said in a statement.. 

From having face covering available for all associates to wear at sites and while out on road making deliveries, to use of additional personal protective equipment as required depending on role and implementing temperature checks across operations in India, here are some of the key adjustments that Amazon India has taken to ensure social distancing and safe deliveries to customers, the statement said.

‘Work from home’ to be new normal for govt offices, draft guidelines issued

Asserting that central government employees may have to work with staggered attendance and variable working hours, the Personnel Ministry has come out with a draft framework for ‘work for home’ for the staff post-lockdown.

The Department of Personnel and Training (DoPT) may provide option for work from home to the eligible officers/staff for 15 days in a year as a matter of policy, it said.

There are 48.34 lakh central government employees.

In a communiqué to all central government departments, the Personnel Ministry said the COVID-19 pandemic has necessitated many ministries to operate from home to maintain social distancing.

BMW India initiates service campaign amid coronavirus pandemic

German luxury carmaker BMW on Thursday said it has rolled out an extended service campaign across its entire dealer network in the country amid coronavirus pandemic.

Under the initiative, BMW customers can avail comprehensive after-sales services, pre-monsoon and electrical function and ensure their vehicles are road-ready at all times, the automaker said.

“BMW Extended Care-plus service is designed to ensure all-round vehicle safety and total readiness of customer’s cars at all times,” BMW Group India acting President Arlindo Teixeira said in a statement.

Lasa Supergenerics starts distribution of 2.5 lakh doses of Arsenic album 30 medicine

Active Pharmaceutical Ingredients producer Lasa Supergenerics on Thursday said it has started distributing Arsenic album 30 medicines to the tune of 2.5 lakh doses initially and going forward, the company will distribute 10 lakh doses free of cost in COVID-19 affected areas.

Lasa has commenced its efforts to support the government to prevent the deadly COVID-19 by way of distributing Arsenic album 30 medicines to the tune of 2.5 lakh doses initially which may possibly prevent approximately 1 lakh people from contracting the deadly virus, the company said in a regulatory filing.

Sensex plunges over 600 points, Nifty below 9,250 

Indices continued to stay in the red as Sensex was trading 618.32 points or 1.93 percent lower at 31,390.29 while Nifty was down 171.20 points or 1.82 percent at 9,212.35 at around 12.30 pm.

More growth opportunities for MSMEs post-stimulus package announcements

The government’s initiative on the Rs 20,000 crore subordinate debts towards the MSME sector, along with redefining of MSMEs comes as a path changing move for the sector during these difficult times, said Sampad Swain, CEO and Co-founder, Instamojo.

“The revised classification of MSMEs is by far one of the biggest ever future drivers to the formalization and digitization of the sector. Nullifying the differentiation of manufacturing from services sector was long called for, owing to several discrepancies which existed in the system in terms of business operations, he said.   

“Now, with the formalisation of micro, small and medium enterprises, this means more growth opportunities and the access to a broader credit market to create self-reliant businesses. This being-short term, in the long term, this will lead to the making and strengthening of a more organised sector through digitization and transparent operations,” Swain said.

PM CARES Fund to allocate Rs 2,000 cr for purchasing ventilators, Rs 1,000 cr for migrants

The PM CARES  Fund Trust on Wednesday decided to allocate Rs 3,100 crore for fight against the COVID-19 pandemic and the amount will be used, among other things, to purchase ventilators and caring for migrant workers, the Prime Minister’s Office said.

Out of the Rs 3,100 crore, nearly Rs 2,000 crore will be earmarked for the purchase of “Made-in-India” ventilators and Rs 1,000 crore for care of migrant labourers, it said.

Another Rs 100 crore will be given to support coronavirus vaccine development efforts, a PMO statement said.

Prime Minister Narendra Modi had announced creation of the PM’s Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES) where people can contribute to help the government fight against coronavirus and similar “distressing situations”.

FMCG companies worry over shortage of workforce

FMCG cos see further migrant labour shortage as lockdown eases in some areas. Companies see demand still higher than normal levels: Sources to @PriyaSheth7 pic.twitter.com/NP5vrpq0M5

— CNBC-TV18 (@CNBCTV18Live) May 14, 2020

50% TDS cut essential for MSMEs
 

Finance Minister Nirmala Sitharaman’s speech was focused on MSMEs, though finer details are yet to come. A 25 percent TDS cut for non-salaried class is not enough as there has been no earning for them during past three months, said Ajai Agarwal, Advisor-SME Chambers of India for AP, Karnataka and Chairman-CSR committee FTS for South India.

“Hence there should have been 50 percent deduction on TDS for them. For salaried class-only those have been benefited that are drawing monthly salary up to Rs 15,000. There is no benefit for those having salary more than Rs 15,000 per month,” he said.

Bankers welcome economic package, say will encourage lending to MSMEs

Various initiatives announced by the government on Wednesday to support micro, small and medium enterprises (MSMEs) will encourage banks to lend more to the sector, bankers said.

Finance Minister Nirmala Sitharaman on Wednesday unveiled a series of initiatives for MSMEs, including Rs 3 lakh crore worth of collateral-free automatic loans for businesses, a subordinate debt of Rs 20,000 crore for stressed units, a fund of funds for equity infusion of Rs 50,000 crore, and revision in the definition of MSMEs.

The sector has been hit hard by the lockdown due to the coronavirus pandemic, with millions of units staring at the prospect of closure and the threat of job losses.

States lift 80 lakh tonnes foodgrain from FCI for free distribution to poor

States have lifted nearly 80 lakh tonnes of foodgrains from Food Corporation of India for free distribution to ration card holders during the lockdown period, the Union government said on Wednesday.

Under the Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY), the Centre is providing 5 kg of foodgrains per month per person free of cost to over 80 crore ration card holders. The scheme is for three months till June. The centre has allocated 120 lakh tonnes of foodgrains for distribution.

“As much as 79.74 lakh tonnes has been lifted for distribution under PMGKAY against total allocation of 120 lakh tonnes which is equal to a two-month allocation,” an official statement said.