PFC, REC merger hits roadblock
The proposed merger of REC with state-owned shadow banking firm Power Finance Corporation has hit a roadblock and is not likely to happen in near future as it would violate Reserve Bank norms on the exposure of non-banking financial companies (NBFCs), according to sources.
As per the Reserve Bank of India’s (RBI) norms, debt exposure of an NBFC in a project cannot exceed 25 per cent. The exposure of Power Finance Corporation (PFC) and REC as a merged entity would exceed the limit of 25 per cent in any existing project as the two firms have been financing power sector projects.
After the merger, the new entity will be required to reduce its exposure in a project to 25 per cent which may not be feasible.
“The merger of REC with PFC is unlikely to happen in near future because of RBI norms on exposure of NBFCs. The capacity to finance a project of the merged entity would be halved. As separate entities, they can finance up to 50 per cent in a project which would be reduced to just 25 per cent after the merger,” one of the sources said.
In March 2019, PFC had completed acquisition of a majority stake in REC by transferring Rs 14,500 crore to the government with hope of merger of the two firms in 2019-20. PTI
COAI urges govt to offer telcos 10-15 yrs for dues settlement
Industry body COAI is pitching for a 10-15 year payment schedule for telecom companies to pay their past statutory dues, beginning with part-payment upfront and a two-year moratorium.
This formula of easier payment schedule to meet statutory obligations would offer the much-needed reprieve to telcos such as Bharti Airtel and Vodafone Idea, whose combined liabilities after the recent SC verdict run into billions of dollars, according to the Cellular Operators’ Association of India (COAI).
COAI Director General Rajan Mathews said the industry requires a debt package for payment of past statutory dues with a two-year moratorium, as in the case of payment made for spectrum bought in auctions.
“Give telecom companies 10-15 years for payment of the full adjusted gross revenue (AGR) dues, a two-year moratorium and an interest rate at interbank borrowing rate levels that is at around 4-5 per cent,” Mathews said.
There could be an upfront payment of about 15 per cent, which is equivalent of the principle AGR amounts, he added.
“The government will easily get Rs 15,000-20,000 crore only through upfront payments from large operators,” Mathews said.
This will be a “reasonable” payment schedule for the crisis-ridden telecom industry, as it would allow them to invest money into network expansion and new technologies, the COAI said. PTI
Gujarat ports see lower than national average growth
Gujarat, home for busiest seaports in the country, has recorded cargo traffic growth rate of 4.1 per cent in the April-December period of the current fiscal, which is lower than the national average, according to Union Shipping Ministry data.
While non-major ports in India saw a 4.8 per cent rise in cargo tariff in the first nine months of 2019-20 to 447.21 million tonnes, the ones of Gujarat Maritime Board (GMB) grew by 4.1 per cent, the data showed.
Gujarat had been the most preferred coastal state attracting significant cargo traffic and contributed significantly to the maritime trade and logistics in the country. GMB handles more than two-thirds of traffic at non-major ports.
But with Maharashtra and ports on the east coast attracting higher tariff, the market share of Gujarat has fallen.
Industry sources said one reason for the shift may be very few handling restrictions in eastern states such as Andhra Pradesh, Tamil Nadu, and Odisha while Gujarat continues to operate with a port policy designed 25 years back in 1995. PTI
Sensex trips 285 pts on F&O expiry; RIL down over 2 pc
Market benchmark Sensex tumbled 285 points on Thursday, weighed by heavy selling in Reliance Industries, HDFC Bank and Infosys as January derivatives contracts expired.
After swinging over 550 points during the day, the 30-share BSE index settled 284.84 points, or 0.69 per cent, lower at 40,913.82. It hit an intra-day low of 40,829.91 and a high of 41,380.14.
Likewise, the broader NSE Nifty closed 93.70 points, or 0.77 per cent, down at 12,035.80.
Reliance Industries was the biggest loser in the Sensex pack, falling 2.62 per cent, followed by Nestle India, IndusInd Bank, UltraTech Cement, M&M and SBI.
On the other hand, Bajaj Auto, PowerGrid, ICICI Bank, Asian Paints, NTPC, HDFC, L&T and Maruti ended with gains.
According to analysts, benchmark indices turned highly volatile ahead of the expiry of January futures and options (F&O) contracts. PTI
Gold jumps Rs 400 on wedding season demand
Gold prices on Thursday jumped Rs 400 to Rs 41,524 per 10 gram in the national capital helped by wedding season demand and overall recovery in global prices, according to HDFC Securities.
Silver prices also climbed Rs 737 to Rs 47,392 per kg from Rs 46,655 per kg on Wednesday.
In the previous trade, gold had closed at Rs 41,124 per 10 gram.
“Spot gold of 24 karat in Delhi was trading higher by Rs 400 supported by wedding season demand and overall recovery in global gold prices. The busy wedding session in coming months may support spot gold prices to trade up,” HDFC Securities Senior Analyst (Commodities) Tapan Patel said. PTI
Exporters ask govt to to review possible impact of deadly Coronavirus on trade
Exporters on Thursday urged the government to review the possible impact of deadly Coronavirus on trade as China is one of the top trading partners for India.
The Federation of Indian Export Organisations (FIEO) said that if the problem persists for long, it may impact domestic mobile manufacturers as they import certain components from China.
“Mobile exporters may face issues if the problem will continue for long as they import lot of components from the neighbouring country,” FIEO Director General Ajaya Sahai said.
He added that certain Indian exporters have received inquiries from Hong Kong and China for import of N72 masks.
“We have provided details of those suppliers to them,” he said.
Engineering exporters said that China is among the top ten destinations for engineering shipments.
“We urged the government to review the possible impact of deadly Coronavirus on trade as well,” the Engineering Export Promotion Council (EEPC) of India said in a statement. PTI
Diageo tempers sales growth expectations amid trade uncertainties
The world's biggest spirits company tempered its annual sales growth expectations on Thursday, due partly to tough trading conditions for its key Scotch whisky business in Latin America and the Middle East.
The maker of Johnnie Walker Scotch whisky, Smirnoff vodka and Guinness stout said it expected annual underlying net sales growth to come in towards the lower end of its 4 to 6% mid-term guidance range, amid rising global trade uncertainty.
The company highlighted volatility in India, Latin America and the Caribbean and said it saw reduced inventory levels and lower passenger traffic including through Hong Kong in its travel retail arm.
Chinese-ruled Hong Kong is in the throes of anti-government protests.
Diageo, which sells 200 brands in 180 countries, also said operating profit rose 0.5% to 2.44 billion pounds ($3.21 billion) in the six months ended Dec. 31.
“There is ongoing uncertainty in the global trade environment and we would not be immune from further policy changes,” Chief Executive Officer Ivan Menezes said.
Diageo has faced pressure from U.S. President Donald Trump's use of tariffs as a weapon in trade conflicts after the United States slapped a 25% tariff on scotch whisky and other European products.
Scotch represents 26% of Diageo's net sales, with global performance flat in the first half, the company said.
It reported, however, a 24% rise in net sales from the Greater China region, driven by strong performance in both Chinese white spirits and scotch. Reuters
Rahul Bajaj to step down from executive role, to stay as non-executive Chairman of Bajaj Auto
Bajaj Auto’s long serving Chairman Rahul Bajaj will step down from executive role to become a non-executive director while continuing to hold his current position, the company said on Thursday.
Bajaj, who has been a director of the company since April 1, 1970, was last reappointed by the board for a five-year term with effect from April 1, 2015, and his term as executive chairman is expiring on March 31, 2020, the company said in a regulatory filing.
“Due to certain commitments and other pre-occupation, Rahul Bajaj has decided not to continue as a whole-time director of the company after the expiry of his current term on March 31, 2020,” it added.
Bajaj Auto further said its board of directors in a meeting held on Thursday approved his appointment as non-executive director with the designation continuing as the chairman of the company with effect from April 1, 2020, subject to shareholders’ approval. PTI
Govt plans to sell imported onion at Rs 22-23/kg to avoid rotting at port
The Centre may soon offload imported onions at a highly subsidised rate of Rs 22-23/kg, down around 60 per cent from the current offered rate, as it apprehends rotting of the perishable kitchen item at ports, sources said on Thursday.
The central government is currently offering imported onions to state governments at an average landed cost of Rs 58/kg for further distribution in the retail market. It is also bearing the transportation cost.
To check spiralling onion prices, the government had in November 2019 decided to import 1.2 lakh tonnes of onion through state-run MMTC. Since then, MMTC has been able to purchase 14,000 tonnes of onion from the overseas market.
According to sources, a large quantity of imported onion is still lying at ports, especially in Maharashtra, as many states did not show interest to lift the commodity at high rates at a time when retail prices started cooling down on arrival of fresh crop. PTI
SC allows mining firm to transport validly mined iron ore in Goa if royalty paid to govt
The Supreme Court on Thursday allowed mining firms to transport validly mined iron ore from mines in Goa if they have paid royalty to government authorities.
A bench headed by Chief Justice S A Bobde delivered the judgment on a plea by mining firm Chowgule and Company Private Limited.
In a major relief to mining firms, the apex court modified its earlier order and permitted transportation of already mined iron ore lying unused at various sites in the state.
The apex court had earlier banned mining and transportation of iron ore in Goa.
The bench directed the mining firm to transport the iron ore within a period of six months from today provided it has paid royalty to authorities and has valid license with regard to it.
The mining company was aggrieved by an order of the Bombay High Court and has been seeking the nod of the apex court to commercially use and transport the mined iron ore in Goa.
In the January 16 hearing, the mining firm’s plea was vehemently opposed by the NGO ‘Goa Foundation’
The top court in February 2018 had quashed the second renewal of iron ore mining leases given to as many as 88 companies in Goa in 2015 and directed the Centre and the Goa government to grant fresh environmental clearances to them.
The court had, however, said that mining lease holders, who have been granted a second renewal in violation of its previous decision and directions, are granted time to manage their affairs and may continue mining operations till March 15, 2018.
“However, they are directed to stop all mining operations with effect from March 16, 2018 until fresh mining leases (not fresh renewals or other renewals) are granted and fresh environmental clearances are granted,” the bench had said.
The judgement had then come on a petition filed by the NGO, which had also raised the issue of companies carrying out mining in violation of various statutes. PTI
KTM introduces BSVI compliant bike range in India
Austrian sports bike maker KTM on Thursday said it has launched BSVI emission norm compliant range of its bikes in India priced between Rs 1.38 lakh and Rs 2.53 lakh (ex-showroom Delhi).
The company, in which Bajaj Auto is a significant stakeholder, said the price increase in the BSVI range compared to the BSIV bikes will be between Rs 3,328 and Rs 10,496 depending on the model.
“KTM has nurtured a base of over 2.5 lakh biking enthusiasts in the last seven years through its Duke and RC range... The new 2020 range further strengthens our mission to offer the most complete range of performance motorcycles in the premium sport motorcycle segment,” Bajaj Auto President (Probiking) Sumeet Narang said in a statement.
Sale of BSVI compliant 125 Duke and RC125 will start in end of February while the sale for all other BSVI models in the KTM family has started, the company said.
The KTM 790 Duke will also transition from BSIV to BSVI emission norms post April 2020, it added.
Bajaj Auto, which holds around 48 per cent stake in KTM AG, has been in a partnership with KTM for over 12 years encompassing manufacturing and distribution of the latter’s bikes in India. PTI
Hyundai Motor rolls out three millionth car from TN plant
Korean auto-maker Hyundai Motor India achieved a significant milestone by rolling out its three millionth ‘made in India’ car being shipped to overseas market from the Tamil Nadu manufacturing unit, a top official said on Thursday.
The three millionth car was the company’s latest sedan Hyundai Aura which has been rechristened ‘Grand i10’ for the Colombian market, rolled out from the assembly line at the state-of-the-art manufacturing facility in nearby Sriperumbudur.
The company on the occasion also said that it has begun export of Hyundai Aura range of cars, besides shipping other models.
The rollout of the three millionth car was the fastest since inception of the unit in 1998.
“The fastest Made in India 3 millionth export car rollout is a significant milestone as it showcases the global success story for Hyundai,” Hyundai Motor India Managing director S S Kim said.
“We started our export operations in 1999 and created many milestones. We thank all our global customers and overseas distributors for their trust...,” he said.
HMIL began exporting cars in 1999 with the first batch comprising 20 units of popular hatchback ‘Santro’ being shipped to Nepal.
Later, it reached the first milestone of exporting one lakhth carin October 2004.
In March 2008, the company exported its five lakhth car followed by 10 lakhth car and 20 lakhth car in February 2010 and March 2014 respectively. PTI
USFDA cautions Aurobindo Pharma’s oral solids formulation facility of regulatory action
Drug firm Aurobindo Pharma on Thursday reported that the US health regulator has cautioned that its oral solids formulation manufacturing facility may be subject to regulatory actions.
The company stressed that it will work closely with the US Food and Drug Administration (USFDA) to comprehensively address the issues.
“Further to our intimations... with regard to the USFDA inspection of Unit VII, an oral solids formulation manufacturing facility of the company, we inform you that the company has received a letter from the USFDA classifying the inspection conducted at the aforesaid facility as official action indicated (OAI),” Aurobindo Pharma Ltd said in a filing to BSE.
According to USFDA’s definitions, OAI means “objectionable conditions were found and regulatory administrative sanctions by FDA are indicated” during inspections.
The company said that it believes that this OAI classification will not have any material impact on the existing revenues or the supplies to its US business at this juncture.
The shares of Aurobindo Pharma were trading at Rs 484.50 apiece on BSE, down 4.49 per cent from the previous close. PTI
Big social media companies may be asked to maintain database of active mobile number of users
The information technology (IT) ministry has proposed that significant social media companies should maintain a database of active mobile numbers of all their users for verification purpose under a revised set of rules, according to a source.
The proposal -- aimed at tackling issues related to anonymity of users in the fast-growing social media space -- has been mooted for the first time as part of the amendments likely to be made to the existing IT intermediary rules, the source said.
Social media companies with more than 50 lakh users in India will be categorised as significant social media intermediaries. These companies will also have to comply with stricter obligations, including traceability of users, under the revised rules, the source said.
The ministry has sent a draft of the revised rules to the law ministry for vetting.
According to the source, the revised rules also seeks to draw a distinction between obligations and requirements of ‘significant social media companies’ as well as all other intermediaries and platforms.
Significant social media intermediaries should do verification and maintain a database of active mobile numbers of all their users, the source told PTI.
By putting in such a requirement, the IT intermediary rules would also be in sync with provisions in the Personal Data Protection Bill. The latter has a provision for verification of social media users, although on a voluntary basis. PTI
U.S. economy growing moderately in Q4; likely missed Trump's 3% goal in 2019
The U.S. economy likely maintained a moderate pace of growth in the fourth quarter, and probably again fell short of attaining the Trump administration's coveted but elusive 3% annual growth target because of slumping business investment amid damaging trade tensions.
The Commerce Department's snapshot of gross domestic product on Thursday will likely show the Federal Reserve's three interest rate cuts in 2019 helped to keep the longest expansion in history, now in its 11th year, on track and avert a downturn.
Growth is, however, slowing as the stimulus fades from the White House and Republicans' huge tax reductions in 2018, a package President Donald Trump had predicted would lift growth persistently above 3%. So far it has fallen short of that goal.
The report comes on the heels of the U.S. Federal Reserve deciding to keep rates unchanged. Fed Chairman Jerome Powell told reporters on Wednesday the U.S. central bank expected ”moderate economic growth to continue” but also nodded to some risks, including the recent coronavirus outbreak in China. Reuters
Axis Bank to raise up to Rs 4,175 crore via NCDs
Private sector lender Axis Bank on Thursday said it plans to raise up to Rs 4,175 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis.
“The committee of whole-time directors of the Bank, today approved the allotment of 41,750 senior unsecured redeemable non-convertible debentures of the face value of Rs 10 lakh each, for cash, at par aggregating to Rs 4,175 crore,” Axis Bank said in a regulatory filing.
The coupon rate for the issue will be 7.65 per cent per annum, the filing added.
The said debentures rated ‘AAA/Stable’ by rating agencies CRISIL and ICRA, will be listed on the wholesale debt market segment of BSE and NSE, the filing said.
The shares of Axis Bank were trading at Rs 729.80 a piece on BSE, down 0.75 per cent from the previous close. PTI
JLR CEO Ralf Speth to retire in Sep: Tata Motors
Tata Motors on Thursday announced the retirement of Ralf Speth as Executive Director and Chief Executive Officer of Jaguar Land Rover (JLR) at the end of his contract term in September.
Speth will maintain his relationship with the Tata Motors-owned firm by taking up the role of non-executive vice chairman, N Chandrasekaran, Chairman of Tata Sons, Tata Motors and Jaguar Land Rover, said in a regulatory filing.
Speth will also remain on the board of Tata Sons, he added.
“Professor Sir Ralf Speth has decided to retire from his current role as Executive Director and Chief Executive Officer of JLR at the end of his contract term in September 2020,” as per the filing.
“I want to thank Ralf for his passion and commitment over the last 10 years. Ralf developed Jaguar Land Rover from a niche UK centric manufacturer to a respected, technological leading, global premium company,” Chandrasekaran said.
“A search committee has been formed which will work with me to identify a suitable successor in the coming months,” he said.
“Personally, I am looking forward to new and exciting challenges,” Speth said.
The shares of Tata Motors were trading at Rs 189.00 apiece on BSE, up 0.51 per cent from the previous close. PTI
Latest on the coronavirus spreading in China and beyond
A coronavirus outbreak that began in Wuhan, the capital of China's central province of Hubei, has killed 170 people in the country and infected more than 7,800 globally, most of them in China.
The virus has caused alarm because it is still too early to know how dangerous it is and how easily it spreads among people. Chinese officials say it is infectious during its incubation period, which could range from one to 14 days.
Here is what we know:
* By Thursday, the death toll in China had risen to 170, with 162 in Hubei, authorities said. Another 7,711 people in China had been infected.
* There are 104 confirmed cases of infection outside mainland China, including 14 cases in Thailand, 11 in Japan, 10 in Hong Kong and Singapore, eight in Taiwan, seven in Macau, Australia and Malaysia, five in the United States and France, four in South Korea, the United Arab Emirates and Germany, two in Canada and Vietnam, and one case each in Nepal, Cambodia and Sri Lanka and Finland.
* No deaths have been reported outside China.
* The previously unknown coronavirus strain is believed to have emerged late last year from illegally traded wildlife at a market in Wuhan, a city of 11 million.
* The World Health Organisation will meet on Thursday to decide whether its rapid spread amounts to a global health emergency.
* Several Chinese cities have levied strict travel curbs.
* Global airlines have suspended or scaled back direct flights to China's major cities.
* Countries including Australia, Canada, France, Germany, Indonesia, Italy, Japan, Singapore, South Korea and the United States are working to evacuate citizens from Wuhan or have already started.
* Nearly 200 evacuated Americans arrived at a U.S. military base in California to be isolated for at least 72 hours.
* Three Japanese evacuated on a government-chartered flight proved to be infected, including two who had not shown symptoms.
* The Chinese Football Association said it would postpone domestic games in 2020.
* The World Athletics Indoor Championships scheduled in the Chinese city of Nanjing in March have been postponed until 2021.
* Alphabet Inc's Google and Sweden's IKEA said they were temporarily shutting all offices and stores in China over the outbreak.
* Some experts believe the virus is not as dangerous as the 2002-03 Severe Acute Respiratory Syndrome (SARS) that killed nearly 800 people, or the Middle East Respiratory Syndrome (MERS), which has killed more than 700 people since 2012. Reuters
Rupee slips 19 paise to 71.47 against US dollar in early trade
The rupee opened on a weak note and declined by 19 paise to 71.47 against the US dollar in opening trade on Thursday, tracking weak opening in domestic equities, even as crude oil prices eased.
Forex traders said most Asian currencies declined after the US Federal Reserve kept its key policy rates steady.
“Federal Open Market Committee (FOMC) kept interest rates unchanged at 1.5-1.75 per cent and gave a positive picture of the US economy.
“However, Fed Chairman Jerome Powell expressed concern over inability to get inflation to the 2 per cent level and the fact that corona virus can be the new risk on the horizon. This led to a safe-haven demand in dollar index and we saw a gap up opening in USD/INR spot,” said Rahul Gupta, Head of Research - Currency, Emkay Global Financial Services.
The rupee opened weak at 71.39 at the interbank forex market and then fell further to 71.47, down 19 paise over its last close.
The rupee had settled at 71.27 against the US dollar on Wednesday.
Market participants further said that factors like weak opening in domestic equities and foreign fund outflows weighed on the local unit, while easing crude oil prices supported the local unit. PTI
Gold demand fell at the end of 2019, but prices set to march higher
Global demand for gold fell in the last three months of last year as sales of gold jewellery, bars and coins declined alongside purchases by central banks and financial investors, an industry report said on Thursday.
Central banks and investors had bought large amounts of gold earlier in the year, helping push gold prices up 18% in 2019 to the highest level since 2013. Gold is often seen by investors as a safe investment during times of political and economic uncertainty and becomes more popular when interest rates fall, as they did last year.
Higher prices, however, caused some buyers particularly retail consumers in top markets China and India - to reduce their purchases, the Refinitiv GFMS Gold Survey said.
Total physical demand for gold over October-December was 1,033 tonnes, down 9% from the same period in 2018, it said. Fabrication of gold jewellery fell 9% year-on-year in the fourth quarter to 509 tonnes, retail purchases of bars and coins were down 7% at 297 tonnes and central bank buying was 18% lower at 132 tonnes, according to the report.
Exchange-traded products holding gold on behalf of financial investors - which Refinitiv GFMS does not classify as physical demand - added 35 tonnes to their inventories, compared with 110 tonnes of additions in October-December 2018.
On the other side of the market, supply dipped 2% year-on-year in the fourth quarter to 1,185 tonnes, the report said. “While demand from key Asian markets will likely remain weak this year, ongoing central bank purchases and renewed investor interest will lend support for higher gold prices,” Refinitiv GFMS analysts said. “We therefore expect gold to average $1,558/oz in 2020, with a possibility to test and move beyond $1,700/oz later in the year.”
Opinion: Tata test-drives conglomerate power
By Una Galani
Zero-emission cars will be a road test of conglomerate power. Tata is drawing on expertise from across its $160 billion empire to support an electric vehicle initiative. Patriarch Ratan Tata attended Tuesdays unveiling of the Nexon EV in Mumbai along with bosses of more than a half-dozen related companies. If the plan works, it could deliver rare and valuable synergies.
The bold strategy signals a strong commitment to turn Tata Motors into a force in green cars. The Indian government, keen to reduce pollution and high oil import bills, wants 30% of new passenger vehicles sold to be electric by 2030, up from less than 1% of the 3.4 million sold in the year to March. But they are already popular for fleet customers and volumes will rise as battery costs fall and more models become available. Chinas Great Wall Motors, for example, is widely expected to roll out a super-cheap model in India next month.
Tatas collaborative effort should help accelerate sales. Tata Power, for example, will have 650 charging stations across the country over the next year. Owners of Tata-branded cars will have priority access and tariffs. Meanwhile, Tatas partnerships should in theory be less messy than the sorts of outside deals struck by Tesla with Panasonic and General Motors with LG Chem .
The Indian group is tapping many parts of the realm, allowing it to move faster. Tata AutoComp will assemble power packs, retail chain Croma is set to sell vehicles to its electronics customers and Tata Motors Finance will provide flexible financing. Tata Consultancy Service has built an app to make related payments and more. Tata Chemicals will explore recycling batteries, but the group wont have any obvious advantage in the global race to secure critical raw materials cobalt and lithium.
Even so, its a potentially lucrative way to extract value from a sprawling outfit. Few beyond entertainment powerhouse Walt Disney have mastered the form. Tata is tightlipped on how much money its various divisions are investing in the electric-vehicle push. In a fast-moving industry, though, Tata will need to ensure its in-house partners and suppliers stay competitive on quality and price. Itll be a corporate triumph to get the project humming on all cylinders. Reuters
Sensex drops over 150 points; Nifty slips below 12,100
Market benchmark Sensex dropped over 150 points in opening session on Thursday dragged by losses in Reliance Industries, HDFC Bank and Infosys ahead of January derivatives’ expiry.
After opening 181 points higher, the 30-share BSE index turned volatile and surrendered all gains to trade 168.61 points or 0.41 per cent lower at 41,030.05.
Similarly, the broader NSE was trading 41.65 points, or 0.34 per cent, down at 12,087.85.
In the previous session, Sensex settled 231.80 points, or 0.57 per cent, higher at 41,198.66, and Nifty closed 73.70 points, or 0.61 per cent, up at 12,129.50.
Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 1,014.27 crore, while domestic institutional investors purchased shares worth Rs 1,520.90 crore on Wednesday, data available with stock exchanges showed.
Tata Steel was the top loser in the Sensex pack, shedding up to 2 per cent, followed by IndusInd Bank, Reliance Industries, Nestle India, Bharti Airtel, SBI, Kotak Bank and Infosys.
On the other hand, PowerGrid, NTPC, Hero MotoCorp, TCS and HCL Tech were trading on a positive note.
According to traders, benchmark indices turned highly volatile ahead of the expiry of January futures and options (F&O) contracts.
Further, weakness in other Asian bourses amid concerns over the impact of China’s coronavirus on world economy also weighed on domestic market, traders said.
Bourses in Hong Kong, Japan and South Korea were trading with sharp losses, while markets in China remained closed.
Benchmarks on Wall Street ended on a tepid note on Wednesday.
Brent crude oil futures fell 1.09 per cent to USD 58.27 per barrel.
The rupee depreciated 17 paise to 71.45 against the US dollar in morning session. PTI
Ficci survey projects FY20 GDP growth at 5%, to improve to 5.5% in FY21
Industry body Ficci on Wednesday said its Economic Outlook Survey has projected the country’s annual median GDP growth for 2019-20 at 5 per cent, in line with the projections made by the National Statistical Organisation (NSO).
The survey has put the median growth forecast for agriculture and allied activities at 2.6 per cent for 2019-20, the industry and services sector at 3.5 per cent and 7.2 per cent, respectively, during the current year.
“Growth is likely to improve to 5.5 per cent in 2020-21 as per the projections,” the survey said.
Further as per the survey, the economic growth has been pegged at 4.7 per cent for the third quarter of 2019-20.
The survey was conducted during December and January 2019-20 amongst economists belonging to the industry, banking and financial services sector, Ficci said.
As per the first advance estimates of the national income released by the NSO, India’s GDP growth is seen dipping to an 11-year low of 5 per cent in the current fiscal, mainly due to poor showing by manufacturing and construction sectors.
The survey further said concerns remain on external front with exports projected to contract in 2019-20.
Merchandise exports are expected to decline by 2.1 per cent, while imports are expected to decline 5.5 per cent during the year, it said.
Moreover, median current account deficit forecast was pegged at 1.4 per cent of GDP for 2019-20.
“Moderation in global growth forecast, escalating geo-political tensions, and uncertainty around trade deal between US-China and BREXIT outcome still form major risk factors to India’s growth in 2020,” it said.
Participating economists said that a shortfall in government’s revenue collections seems imminent this year on the back of lower than anticipated nominal growth.
To augment government’s revenue collections, they called for measures to boost the country’s nominal GDP growth.
Citing weak consumption demand as a major impediment to India’s growth, economists cautioned against any changes in the GST rates to improve revenue collections as it would prove to be counterproductive, Ficci said.
Economists recommended undertaking expansionary fiscal and monetary policies along with a slew of reforms to tackle the structural problems facing the economy. PTI
