QBiz: Stocks Fall Again, Worst Week Since 2008; Gold Prices Fall
Your daily round-up of the latest business news on QBiz.
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1. Virus Unnerves Markets, Raises Fears of Recession
The coronavirus epidemic is wreaking havoc on the Indian market. More than Rs 5.5 trillion of investors’ wealth was wiped off on Friday, 28 February the result of the biggest single-day decline in shares since August 2015.
And, as the rapid spread of the virus spiked worries of a global recession, equities lost 7% this week, the biggest sell-off since the international financial crisis of September 2008.
On Friday, the Sensex closed at 38,297.29, down 1,448.37 points, or 3.64%, while the 50-share index was at 11,219.20, down 414.10 points, or 3.56%. This is Sensex and Nifty’s biggest single-day decline since 24 August 2015.
(Source: Livemint)
2. Gold Prices Today Fall for Fourth Day in a Row, Silver Rates Slump
Gold prices today fell in Indian markets, extending their fall to the fourth day. On MCX, gold April gold futures fell 0.17% to Rs 42,314 per 10 gram, tracking an advance in global rates.
Silver futures on MCX slumped over 2% or Rs 1,100 per kg to Rs 45,527. From Monday's record high level of Rs 43,788 gold prices in India have come off about Rs 1,500 per 10 gram amid some profit-taking and decline in global rates from higher levels.
April gold futures can can recover towards Rs 42,900 while taking support near Rs 42400 while silver futures (May) can recover towards Rs 46,800 while taking support near Rs 46,200, SMC Global said in a note.
(Source: Livemint)
3. Economy Has Bottomed Out, Says Economic Affairs Secretary
Signalling green shoots in the economy, the country’s GDP grew 4.7 percent in third quarter ended 31 December 2019 on the back of an uptick in agriculture and services besides better show in the eight core industries in December, official data showed on Friday.
The latest quarterly GDP growth print is however lower than 5.6 percent growth in December quarter last fiscal and the revised 5.1 percent GDP growth in second quarter of this fiscal.
Simultaneously, the National Statistics Office (NSO) has now revised upwards the first and second quarter GDP growth for the current fiscal to 5.6 percent (5.1 percent projected earlier) and 5.1 percent (from 4.5 percent) respectively.
(Source: Business Line)
4. Telcos Need to Wait More for Relief on AGR as Govt Scrambles Over Data
Inadequate data seems to be a hurdle for the Union government while deciding on a relief package for the telecom industry facing a Rs 1.47-trillion licence fee and spectrum charge demand linked to adjusted gross revenue (AGR).
A meeting of the Digital Communications Commission (DCC), which was expected to come out with relief measures for the financially-stressed sector, remained inconclusive on Friday, 28 February over data issues, a senior official in the Department of Telecommunications (DoT) said.
DCC, the highest decision-making body, is grappling with discrepancy in data for calculation of AGR, it’s learnt. DCC, headed by the DOT secretary, includes secretaries across ministries of finance, commerce, and Electronics and Information Technology, as well as CEO of NITI Aayog.
(Source: Business Standard)
5. SBI Expects 5-7% Corporate Credit Growth in Q4
The country’s largest lender, State Bank of India, expects corporate credit growth for it during the fourth quarter this fiscal to be around 5-7% y-o-y. The bank is seeing fresh interests in the project finance side in various sectors, particularly in road, city gas distributions and renewable energy, SBI deputy managing director P N Prasad said on Friday.
“Corporate credit offtake generally happens more at the end of the fourth quarter particularly for many reasons. Some of the PSUs, central government and state government indeed do disburse money and consume money in the last quarter. So, normally we expect the credit growth to surge in the months of February and March. At the current trends, it could be around 5-7% for the fourth quarter this fiscal, it cannot be more than that,” Prasad told reporters on the sidelines of an event organised by CII.
Notably, the banking sector has experienced muted credit growth in corporate banking so far, and SBI saw a marginal 0.5-1% y-o-y growth in this segment during the third quarter of the current financial year.
(Source: Financial Express)
6. SEBI Chief Ajay Tyagi Gets Six-Month Extension: Reports
SEBI chief Ajay Tyagi, whose term is set to end on 29 February, has been given a 6-month extension, a CNBC-TV18 flash said, quoting sources. Tyagi's stint at the markets regulator saw him tackle issues like the IL&FS meltdown and the Karvy episode.
A report in Mint earlier said that Department of Economic Affairs Secretary Atanu Chakraborty is the favourite to replace Tyagi.
(Source: Moneycontrol)
7. Steadiness in Economy Is Good Sign: Sitharaman as GDP Growth Stands at 4.7%
Finance Minister Nirmala Sitharaman on Friday, 28 February said the "steadiness" in the economy is a good sign, soon after the official data showed the December quarter GDP growth at 4.7 percent.
Speaking at CNBC TV 18's business leadership awards event, Sitharaman made it clear that she was not expecting a jump in the number either.
India's economic growth slowed to 4.7 percent in October-December 2019, according to official data released on Friday.
The Gross Domestic Product (GDP) growth was registered at 5.6 percent in the corresponding quarter of 2018-19, as per the data released by the National Statistical Office (NSO).
(Source: Business Standard)
8. One Nation-One Ration Card in 20 States From 1 June, Says Paswan
Minister of Consumer Affairs, Food and Public Distribution Ram Vilas Paswan offered much food for thought for participants of the BusinessLine Agri Summit.
In his valedictory address, Paswan said that his Ministry aims to roll out ‘One Nation-One Card’ with 20 States on board from 1 June. This move is intended to enable the right beneficiaries get their entitlement of subsidised foodgrains even if they are not in their home state/Union Territory. Paswan said 12 states are already on board.
These include Andhra Pradesh, Goa, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Telangana and Tripura. “We expect big States such as Uttar Pradesh and Bihar to join by March,” he said.
(Source: BusinessLine)
9. Mastercard Announces New CEO
Mastercard announced that Ajay Banga, President and Chief Executive Officer, will transition to the role of Executive Chairman of the Board of Directors of Mastercard Incorporated on 1 January, 2021. Mastercard’s board unanimously elected Michael Miebach, Chief Product Officer, to become Chief Executive Officer and a member of the Board of Directors on 1 January 2021 and, as part of the transition, he will become President of the company, effective 1 March 2020.
As President of the company, Miebach will oversee the sales, marketing, products, services and technology organizations.
‘As the company moves into this next phase of growth, we have a deep leadership bench--with Michael at the helm--to take us to the next level,’ said Banga.
(Source: Money Control)
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