Stock Market Latest Updates: RBI rate cut fails to cheer market; Sensex falls 131 points, Nifty holds 8,600-level after three-session rally

Yes Bank founder Rana Kapoor seeks bail, says in risk of contracting COVID-19 in jail 

Yes Bank founder Rana Kapoor, currently in judicial custody after arrest on money laundering charges, moved a bail application on Thursday claiming his prevailing medical condition puts him at the risk of contracting coronavirus in jail.

In the plea filed through his lawyer Subash Jadhav, Kapoor claimed he was sufferinga chronic immunodeficiency syndrome, which causes recurrent lung, sinus and skin infections.

The 62-year-old banker also claimed to be suffering from severe hypertension, anxiety and depression for the last 18 months, which is in large part being treated in his presence of his family. This, combined with bronchial asthma since childhood, which still requires inhalers, puts him at high risk of a severe lung infection which can lead to death, the bail plea said.

Asia tourists troubled by cancelled flights, borders closing

From the sun-soaked beaches of Thailand to the foothills of Mount Everest in Nepal, tourists across Asia are finding their dream vacations have turned into travel nightmares as airlines cancel flights and countries close their borders in the fight against the coronavirus pandemic.

Hundreds of tourists escaping cold weather in Europe were scrambling this week to find alternative ways to return home from the Thai island of Phuket in the Adaman Sea.

Ksenia Vostriakova and her friends were scheduled to fly back to Moscow on an April 3 Singapore Airlines flight, but it was among those cancelled when the airline slashed its operations. They have booked a flight on Qatar Airways for April 6 and are hoping nothing else changes.

“Now we’re really worried that this flight also might be canceled,” Vostriakova said, adding that their Thai visas run out in mid-April. “We might still stay here because everything changes.”

Coronavirus to disrupt global construction sectors, but activity resuming in China: Moody’s

Moody’s Investors Service said in a new report on Friday that business conditions and revenue growth potential are deteriorating rapidly for construction companies globally.

“The spread of the coronavirus and the associated quarantines, social-distancing measures, travel restrictions and logistics disruptions have led to suspensions and delays in construction activity,” said Moody’s vice president and senior analyst Sue Su.

“US, European and Australian construction companies are starting to feel the pain but China, which was hit first and hard by the coronavirus outbreak, is showing signs of recovery,” added Su.

Yes Bank board clears Rs 5,000 cr capital raising plan

Private sector lender Yes Bank will raise up to Rs 5,000 crore as equity capital in the second round to meet regulatory requirements and support business.

Early this month, the bank received an equity infusion of Rs 10,000 crore from eight domestic banks led by State Bank of India.

The bank’s board of directors approved raising of funds for an additional amount aggregating up to Rs 5,000 crore in one or more tranches by issuing securities.

The bank has kept options open to use routes like qualified institutional placement, public issue, rights issue, global depository receipts, American depository receipts, and foreign currency convertible bonds or any other permissible mode, it said in a statement.

Don’t believe rumours on bank branch closures: Department of Financial Services 

The Department of Financial Services denied the rumours on bank branch closure and said customer service bank branches will remain operational and will continue to provide services.

However, almost all the bank branches will be open for limited hours only. In order to reduce public gathering, the banks have urged their customers to avail net-banking or mobile banking services in case of non-essential activities during this period.

“Sufficient cash across branches and ATMs. Don’t trust rumours of branch closures. Customers are requested to stagger arrival at Branches etc,” said Debasish Panda, Secretary, Department of Financial Services.

Please do not believe rumours of branch closure. Customer service branches committed for necessary services during #Lockdown21. #StaySafeStayHealthy @PIB_India @DDNewslive https://t.co/UBhxs7hScM

— DFS (@DFS_India) March 27, 2020

Sensex soars over 300 points, Nifty above 8,700-mark

Market returned to green zone after staying in the red for a while in the afternoon trade.
 

Sensex jumped 314.04 points or 1.05 percent to 30,260.81 while Nifty was also up 153.35 points or 1.77 percent at 8,794.80 at around 2.15 pm.

India’s electricity use falls to lowest in five months due to lockdown

India’s electricity use fell to the lowest in nearly five months on the first day of a nationwide lockdown to prevent the spread of the coronavirus, government data showed, with monthly power consumption likely to fall for the first time in four months.

National electricity demand fell to 2.78 billion units on 25 March, the first day of the three-week total shutdown called by Prime Minister Narendra Modi late on Tuesday.

That was nearly 20 percent below the average of 3.45 billion units per day in the first three weeks of March, a Reuters analysis of government data showed.

If demand continues at these reduced levels, India’s electricity consumption for March is set to decline at the fastest pace year-on-year since October, when power use fell at its steepest in over 12 years due to a broad economic slowdown.

While electricity usage contracted nationally, consumption actually rose slightly in some states, raising concerns that the shutdown may not have been fully observed in all areas, although officials said higher temperatures may have contributed.

DGCA extends validity of pilots’ licences nearing expiry by 90 days

India’’s aviation regulator DGCA on Friday extended the validity of pilots’’ licences that were nearing expiry by 90 days, noting that they were facing issues in completing various requirements due to the restrictions imposed to curb the COVID-19 outbreak.

Similarly, the regulator has also extended the validity of medical assessment certificates, aircraft rating certificates, skill test certificates, etc, for a period of 90 days.

“DGCA is aware that operators and individual license holders are facing issues in completing their requirements towards renewal, issuance of various pilot licenses and ratings and to exercise the privileges of their respective licenses and ratings including temporary authorizations (FATA),” the regulator stated in a public notice on Friday.

FATA stands for foreign aircrew temporary authorization, which is issued to foreign pilots that are working for Indian airlines.

RBI takes giant steps to safeguard economy: Narendra Modi

Today @RBI has taken giant steps to safeguard our economy from the impact of the Coronavirus. The announcements will improve liquidity, reduce cost of funds, help middle class and businesses. https://t.co/pgYOUBQtNl

— Narendra Modi (@narendramodi) March 27, 2020

Slashed interest rate needs quick transmission: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Friday asked banks for “quick transmission” of slashed interest rate as the RBI cut the key lending rate sharply by 75 basis points to boost liquidity in financial system to deal with the COVID-19 pandemic.

In a tweet, the Finance Minister also welcomed RBI Governor Shaktikanta Das’’ statement that the macro economic fundamentals of the Indian economy are sound, and in fact stronger than what they were in the aftermath of the global financial crisis of 2008-09.

“Appreciate @RBI @DasShaktikanta’s reassuring words on financial stability,” she said.

The three-month moratorium on payments of term loan instalments (EMI) and interest on working capital give much-desired relief, she added.

Appreciate @RBI @DasShaktikanta’s reassuring words on financial stability. The 3 month moratorium on payments of term loan instalments (EMI) & interest on working capital give much-desired relief. Slashed interest rate needs quick transmission. #IndiaFightsCoronavirus

— Nirmala Sitharaman (@nsitharaman) March 27, 2020

Nifty Bank slips for more than 8% from day’s high

#CNBCTV18Market | Nifty Bank slips for more than 8% from day's high pic.twitter.com/nfw0ycsxHJ

— CNBC-TV18 (@CNBCTV18Live) March 27, 2020

Sensex tanks over 500 points, Nifty below 8,600-level in afternoon trade

Equity benchmark indices was trading in the red in the afternoon session and Nifty slipped below 8,600-mark.

Sensex plunged 569.87 points or 1.90 percent to 29,376.90 while Nifty was down 75.70 points or 0.88 percent at 8,565.75 at around 1.30 PM

RBI measures will boost economic activities: Prakash Javadekar

Union minister Prakash Javadekar on Friday said the RBI’s measures to help businesses tide over the economic crisis in the wake of the coronavirus outbreak would boost economic activities.

The Reserve Bank of India (RBI) has asked all lending institutions to allow a three-month moratorium on EMI payments in order to infuse liquidity into the system. It has also allowed banks to defer interest on working capital loans for the next three months

“Steps announced by RBI will reduce interest burden on businesses/industries and will boost economic activities,” the minister, who holds multiple portfolios including Information and Broadcasting, said in a tweet.

.@narendramodi government’s historical decisions in succession. Three months moratorium on repayment of #EMI will help all home buyers, vehicle buyers and other customers.#IndiaFightsCorona#StayHomeStaySafe @PIB_India @DDNewslive @BJP4India @BJP4Maharashtra #RBIActs

— Prakash Javadekar (@PrakashJavdekar) March 27, 2020

Cognizant to give India staff 25% additional pay over base salary for April

IT firm Cognizant on Friday said it will give employees who are at associate level and below in India and the Philippines, an additional payment of 25 percent of base pay for April, in recognition of their extraordinary continuity-of-service efforts amid the COVID-19 outbreak.

The move is expected to benefit over 1,30,000 Cognizant employees in India.

Cognizant CEO, Brian Humphries in a note to employees said the additional payment will be processed with their April paychecks, and that the company will be reviewing this approach monthly.

Describing the pandemic as one of the biggest shocks to the world in decades, Humphries said that Cognizant, like all global companies, is experiencing the effects of this public health emergency on both the demand and fulfilment sides of its business, from London to Mumbai to Manilla and New York.

Rupee declines from day’s highs

#Rupee off highs pic.twitter.com/7JDGvWgrl3

— CNBC-TV18 (@CNBCTV18Live) March 27, 2020

SpiceJet puts cargo fleet to ensure supply chain is intact

SpiceJet said on Friday its fleet of freighters is flying to nearby countries including to those in the Middle East and southeast Asia with supplies to mitigate the impact of coronavirus COVID-19.

The cargo planes are carrying fresh fruits and vegetables, medicines and medical devices, said chairman and managing director Ajay Singh.

“We will do as much as we can to help our government and fellow citizens in the fight to defeat coronavirus. Corona warriors all over the country — be it our doctors, nurses, healthcare workers, police and volunteers are doing an excellent job,” he said in a statement.

SpiceXpress, the cargo arm, has been doing doorstep deliveries of essential supplies, medicines and medical equipment in Bengaluru, Patna, Chennai, Ahmedabad, Raipur, Hyderabad, Jaipur, Visakhapatnam, Srinagar, Thiruvananthapuram, Vadodara, Kochi, Guwahati, Jammu and Lucknow among other cities.

China’s industrial firms post steepest fall in profits in a decade

Profits at China’s industrial firms slumped in the first two months of the year to their lowest in at least a decade, with the mining, manufacturing and power sectors all seeing sharp falls, as a virus epidemic battered China’s economy.

Profits earned by Chinese industrial firms in the first two months dropped 38.3 percent from a year earlier to 410.7 billion yuan ($58.15 billion), worsening from a 6.3 percent fall seen in December last year, the National Bureau of Statistics (NBS) data showed. It marked the steepest decline in data going back to 2010.

The reading combines the results for January and February to exclude distortions caused by the week-long Lunar New Year.

The outbreak escalated just as many businesses were closing for the long holiday break in late January, and widespread restrictions on transportation and personal travel, as well as mass quarantine, delayed their reopening for weeks.

Japan February factory output seen cooling, retail sales down for fifth month

Japan’s factory output likely slowed in February and retail sales dropped for a fifth straight month, a Reuters poll showed on Friday, as the coronavirus outbreak took an increasing toll on businesses and consumers.

Japan has recorded 2,113 cases of the virus and 57 deaths so far as the disease races across the world, prompting the Bank of Japan to expand stimulus while the government works to nail down a support package that sources say will total at least $137 billion.

While the stimulus likely won’t prevent the world’s third-largest economy from sliding into recession, analysts say it could keep businesses afloat until global demand begins to recover.

Industrial output is expected to have inched up 0.1 percent in February from the previous month, the poll of 15 analysts showed, after a revised 1 percent gain in January.

Crude oil futures gain Rs 17 to Rs 1,804 per barrel

Crude oil prices on Friday rose Rs 17 to Rs 1,804 per barrel as participants widened their positions in line with a positive trend overseas.

On the Multi Commodity Exchange, crude oil for delivery in April traded higher by Rs 17, or 0.95 percent, to Rs 1,804 per barrel in 37,183 lots.

Crude oil for May delivery was up by Rs 22, or 1.1 percent, to Rs 2,023 per barrel with an open interest of 437 lots.

Analysts said raising of bets by participants kept crude prices higher in futures trade here.

ITC setting up Rs 150-cr COVID-19 fund for underprivileged

ITC Ltd on Friday said it is setting up a contingency fund of Rs 150 crore for vulnerable sections of the society in the wake of the coronavirus outbreak.

The corpus is created to address and manage the challenges arising out of the adversity, a company statement said.

“This fund will be utilised primarily to provide relief to the vulnerable and most needy sections of the society who have been harshly impacted by the pandemic and have faced significant disruption in their livelihoods,” it said.

In addition, the company said it will collaborate with local authorities to provide assistance to the district health and rural healthcare eco-system that reaches out to the weakest sections of the society.

Singapore Airlines to tap existing investors for $10.48 bn to offset coronavirus shock

The Singapore Airlines is tapping existing investors for up to $10.48 billion dollars through the sale of shares and convertible bonds to offset the shock to its business from the coronavirus outbreak, according to a media report.

The fund raising is being underwritten by the airline’’s biggest investor, Temasek Holdings, a state-investment group which owns about 55 percent of the group.

“This is an exceptional time for the Singapore Airlines (SIA) Group,” Channel News Asia reported on Friday citing SIA chairman Peter Seah’’s statement issued on Thursday.

The airline’’s shares went into a rare trading halt earlier in the day after plunging to their lowest in 22 years as investors feared the COVID-19 pandemic will have a deep impact on the company.

World’s ailing airlines appeal for aid as US offers $58 billion

Global airlines urged the world’s major economies to act quickly to prevent irreversible damage to an industry that has seen demand decimated almost overnight by the coronavirus crisis.

Several states have already stepped in to help airlines hammered by the travel slump, with the United States offering $58 billion in aid, Singapore announcing support for aviation and Australia easing competition rules.

As leaders from the Group of 20 nations met for a video summit, the International Air Transport Association (IATA) asked governments to provide or facilitate financial support for the major carriers it represents.

Credit card dues not to be part of 3-month moratorium: RBI

#RBIActs | @RBI tells CNBC-TV18, credit card dues won’t be part of 3-month moratorium as it’s not part of term loan pic.twitter.com/b0hXHIEEuP

— CNBC-TV18 (@CNBCTV18Live) March 27, 2020

‘RBI announcements to instill confidence in depositors of commercial banks’

The announcements by RBI governor candidly include about country’s safe banking sector to instill confidence in depositors of commercial banks. It was announced that RBI has injected liquidity of Rs 2.8 lakh crore through various instruments”, said Abhishek A Rastogi, Partner at Khaitan & Co while explaining the liquidity measures.

“Deferment of net stable funding ratio (introduction deferred from 1 April, 2020 to October 2020) and incremental CCB (implementation deferred from 30 March to 30 September) are appropriate immediate actions which require applauds,” added Rastogi.

Oil gains as govets pledge support amid coronavirus chaos

Oil prices rose on Friday as governments around the world pledged a huge injection of funds and other measures to limit the economic fallout from the coronavirus pandemic, despite fears the outbreak will destroy demand for oil.

Brent crude was up 22 cents, or 0.8 percent, at $26.56 a barrel. US crude was up 42 cents, or 1.9 percent, at $23.02.

Both of the benchmarks are down nearly two-thirds this year and the slump in economic activity and fuel demand has forced massive retrenchment in investment by oil and other energy companies.

Oil requirements around the world may drop by 20 percent as 3 billion people are in lockdown, the head of the International Energy Agency said as he called on major producers like Saudi Arabia to help stabilise oil markets.

Gold eases on profit-taking but set for best week in 11 years

Gold edged lower on Friday as investors booked profits, but was set for its best week since December 2008 as record high US jobless claims due to the coronavirus fuelled hopes for more stimulus to stem the economic damage caused by the epidemic.

Autocatalysts platinum and palladium, meanwhile, were poised for their biggest weekly gains on record, as a lockdown in major producer South Africa stoked supply worries.

Spot gold fell 0.4 percent to $1,622.65 per ounce after five straight sessions of gains. US gold futures slipped 0.7 percent to $1,640.00 per ounce.

Bullion has gained 8.2 percent so far this week, supported by weak US unemployment data and the Federal Reserve’s unprecedented economic stimulus measures.

Rupee rises 56 paise to 74.60 against dollar 

The rupee jumped 56 paise to 74.60 against the US dollar in early trade on Friday. 

The domestic unit opened higher by 46 paise at 74.69 per dollar against previous close of 75.15.

Sensex plunges over 450 points, Nifty breaches 8,600-mark

The market slipped into red zone erasing the opening gains soon after RBI governor Shaktikanta Das announced massive repo rate cut of 75 basis points to 4.4 percent on Friday.

Sensex plunged 491.66 points or 1.64 percent to 29,455.11 and the broader Nifty was down 43.90 points or -0.51 percent to 8,597.55 at around 11.15 AM.

Sensex slips into red, Nifty below 8,700-mark

The equity benchmark indices erased the opening gains after RBI governor Shaktikanta Das announced massive repo rate cut on Friday.

Sensex slipped into the red and was trading 94.86 points or 0.32 percent lower at 29,851.91 while the broader Nifty was trading 25.50 points or 0.3 percent higher at 8,666.95 at around 11.10 AM.

Shallow recovery expected in 2020: RBI governor

RBI governor Shaktikanta Das said that the Monetary Policy Committee (MPC) noted that global economic activity has come to a near stand-still as COVID-19 related lockdowns and social distancing in affected countries.

He said that there are expectations of a shallow recovery in 2020 from 2019’s decade low in global growth have been dashed.

Indian banking system safe, sound: RBI governor Shaktikanta Das

Indian banking system is safe and sound, said RBI governor Shaktikanta Das.

In recent past COVID-19-related volatility in stock market has impacted share prices of banks as well resulting in some panic withdrawal of deposits from a few private sector banks, said Das.

Working capital repayment allowed to differ by 3 months

The RBI on Friday announced that lending institutions and banks would be allowed to defer interest on working capital repayments by 3 months.

Banks may reassess working capital cycle and will not be treated as NPA, said RBI governor Shaktikanta Das.

CRR cut to increase liquidity in market

Reduction of cash reserve ratio (CRR) will certainly increase liquidity in market and was essential. This appears to be a very relevant fiscal measure in the crisis period, said Abhishek A Rastogi, partner at Khaitan & Co.
 

“As per the announcements, these measures will result in a total estimated liquidity injection of Rs 3.74 lakh crore. The measures appear to enforce monetary transmissions and ease financial stress”, said Rastogi.

“An important announcement includes that banks are allowed to defer interest on working capital repayments by three months. This will provide huge relief to businesses. Banks can reassess working capital cycle and delays during the crisis period will not be treated as non-performing assets. This will give lot of confidence to businesses”, he added.

Market gives up early gains, Nifty below 8,900-mark

The equity benchmark indices gave up the early gains even as RBI governor Shaktikanta Das announced repo rate cut by 75 basis points to 4.4% on Friday morning. 

Sensex was trading 392.70 points or 1.31 percent at 30,339.47 while Nifty was up 175.90 points or 2.04 percent at 8,817.35 at around 10.40 AM.

RBI cuts cash reserve ratio by 100 bps 3%

#RBIActs | CASH RESERVE RATIO CUT BY 100 bps TO 3% pic.twitter.com/NP71n8hkfV

— CNBC-TV18 (@CNBCTV18Live) March 27, 2020

Go digital, safe Shaktikanta Das

The RBI governor asked people to use digital payments. 

Be safe, said Das.

RBI governor says today’s conference comes under extraordinary circumstances

#RBIActs | @RBI governor says this address of mine comes amidst extraordinary circumstances pic.twitter.com/0Q74N6sDUg

— CNBC-TV18 (@CNBCTV18Live) March 27, 2020

‘Repo rate, reverse rate cut much-required’

Announcements by RBI governor Shaktikanta Das following the announcements by Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman show that the government does not want to leave any stone unturned, said Abhishek A Rastogi, Partner at Khaitan & Co. 

“Repo rate and reverse repo rate reduction will provide the much required immediate benefit. This looks like a very pragmatic approach which would help the stakeholders,” he said.

Indices off day’s high post RBI cuts repo rate by 75 bps to 4.4%

Sensex fell from the day’s high and was trading 557.21 points or 1.86 percent higher at 30,503.98 while the Nifty was up 209.35 points or 2.42 percent at 8,850.80.

Axis Bank and IndusInd Bank were the top gainers in the Sensex pack.