YES Bank board clears Rs 5,000 cr capital raising plan in multiple tranches. Ailing private sector lender YES Bank will raise up to Rs 5,000 crore as equity capital in the second round to meet regulatory requirement and support business.
The board, at its meeting on Thursday, 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 informed the exchange. Its shares closed 10.27 per cent lower at Rs 26.65 per share on the BSE. 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 added. Its reconstituted eight-member board held a nine-hour-long meeting via videoconference. Besides enabling resolution for capital raising, the directors dwelled on employee concerns and work being done by them in trying times, said banking sources.
The bank is a board-driven company. FMCG leaders mark down overall growth to 3% amid coronavirus outbreak. The Rs 4.3-trillion fast-moving consumer goods (FMCG) market may see its overall growth rate decline to 3 per cent in the January-March period as measures to contain the impact of Covid-19 intensify, top companies have told Business Standard.
The gloomy industry projection is in sharp contrast to the forecast by research agency Nielsen, which has maintained its 5-6 per cent quarterly growth outlook. The assessment by companies is based on the lockdown and supply crunch that most of them are facing. “There is no denying that there is an impact on business because of the virus scare,” said Mayank Shah, senior category head, Parle Products. Dow wraps up strongest three days since 1931; S&P 500 surges 6.24% The Dow Jones Industrial Average wrapped up its strongest three days in nine decades on Thursday as record weekly US jobless claims came in below investors' worst fears and the focus stayed on an unprecedented $2 trillion stimulus awaiting approval by the US House of Representatives.
The Dow finished up 21% from its Monday low, establishing it in a bull market, according to a widely used definition. It was the index's strongest three-day percentage increase since 1931. The number of Americans filing claims for unemployment benefits surged to 3.28 million last week as state-wide lockdowns brought the economy to a halt and unleashed a wave of layoffs.The median expectation of analysts polled by Reuters was for 1 million claims, but the top end of the forecast was as high as 4 million. Since Monday, the S&P 500 has surged about 17%, although it remains down 22% from its Feb. 19 record high. "That doesn't guarantee that the bottom is in, but it is indicative of a bottoming process. " Coronavirus impact: GDP likely to fall to a three-decade low, say analysts. With the nation under a lockdown because of the coronavirus disease (COVID-19) outbreak, analysts suggest that the impact on various Indian industries could cost the economy around 3 per cent of GDP.
There has been around 40 per cent decline in economic activity after the lockdown, as only essential manufacturing (food & pharma) and services (grocery trade, health & public services) are functioning. This, analysts say, could shave-off 1.5 per cent from India’s projected economic growth in financial year 2020-21 (FY21). India’s GDP growth at constant prices is now likely to be at a three-decade low of 3.5 per cent in FY21. CRISIL cuts India's FY21 growth forecast to 3.5% amid coronavirus outbreak. G20 commits $5 trn spending; aims to boost world economy in coronavirus. The Group of 20, or G20, leaders on Thursday pledged to inject $5 trillion into the global economy to blunt the economic impact of the coronavirus pandemic.
The infusion — pushed through a targeted fiscal policy, economic measures, and guarantee schemes — will counteract the social, economic and financial impacts of the pandemic, according to a statement released after the G20 Leaders’ Summit. “We ask our finance ministers and central bank governors to coordinate on a regular basis to develop a G20 action plan in response to COVID-19 and work closely with international organisations to swiftly deliver the appropriate international financial assistance,” the statement said. Held through videoconferencing, the Saudi Arabia-hosted summit also committed to expanding the manufacturing capacity to meet the increasing demand for medical supplies and ensuring these are made widely available, at an affordable price, on an equitable basis, where they are most needed and as quickly as possible. Coronavirus impact: Moody's cuts India's growth forecast to 2.5% from 5.3%
MARKET LIVE: Sensex off highs as RBI says FY20 GDP growth of 5% now at risk. Coronavirus: Govt asks car manufacturers to explore ventilator production. The central government has asked all automakers to utilise their manufacturing facilities to produce ventilators and other medical gear required to fight coronavirus pandemic (COVID-19).
Anand Mahindra-led Mahindra & Mahindra (M&M) is believed to be in the final stage of discussions with Bangalore-based ventilator exporter Skanray Technologies. Tata group, through Tata Motors, is also in last-minute negotiations with a Mysuru-based manufacturer to ramp up ventilator manufacturing. In a communication to major automobile manufacturers, the Ministry of Heavy Industries asked them to explore using their manufacturing facilities and manpower to produce ventilators. Sources said that the communication was issued after a joint meeting of the top four companies — Maruti Suzuki, M&M, Tata Motors and Hyundai.
Food, medicine shops will remain open throughout 21-day lockdown: Govt. Union minister Prakash Javadekar on Wednesday said there was no need for people to panic as shops selling essentials and medicines will remain open throughout the 21-day lockdown imposed to combat the coronavirus outbreak.
He also said there were sufficient legal provisions available to deal with black marketeers and hoarders. Javadekar was referring to the lockdown announced by Prime Minister Narendra Modi on Tuesday to prevent the spread of coronavirus. Addressing the media about the decisions taken by the Union Cabinet, he said the Centre and the state governments are working together to effectively implement the lockdown and ensure people do not suffer. In times of coronavirus: Everything you need to know about your investments. Imagine the chaos: Global stock markets have gone into a tailspin, industries are shutting down, and countries are announcing lockdowns due to COVID-19.
In less than a month, Indians find themselves in the middle of a global storm that has disrupted the lives of every citizen. Some sectors, such as aviation, are already cutting salaries and we will know about the magnitude of job losses only at a later date. During such times, money management and supplies become the core focus of all families. But what works for one person may not work for another. Commodity derivatives trading beyond 5 p.m. discontinued during lockdown. Commodity exchanges have reduced trading hours and all derivatives in this space will end at 5 p.m. between Monday and April 14.
This follows their discussions with the Securities and Exchange Board of India on the matter. The MCX, on which trading in the evening is more active than on any other exchange, has also issued a circular in this regard. Brokers had approached the regulator and requested it to discontinue evening session trading while the lockdown persists, as it was becoming difficult to manage staff presence and commuting at night. In view of this, the regulator discussed the issues with exchanges and those on which only commodities derivatives are traded have issued circulars discontinuing trading beyond 5 pm. MCX, NCDEX and ICEX have all said in the circular that any change in timing or extention will be communicated after April 14.
With 75% economy under lockdown, analysts see sharp fall in GDP. The 21-day shutdown announced by the Narendra Modi – led government due to coronavirus (Covid-19) pandemic has put nearly 75 per cent of the Indian economy under lock and key, which is likely to strain the government’s finances and see the fiscal deficit for financial year 2020-21 (FY21) rise by one per cent from the 3.5 per cent target set in the Union Budget presented in February, says the latest report from Nomura.
“Our initial estimates suggest that around 75 per cent of the economy will be shutdown, resulting in a direct output loss of nearly 4.5 per cent. We expect the central government to soon announce a stimulus package of around 0.7-1.1 per cent of gross domestic product (GDP). Along with the growth hit and poor tax collections, we expect the fiscal deficit for FY21 to balloon by over 1 per cent of GDP,” wrote Sonal Varma, managing director and chief India economist at Nomura in a co-authored report with Aurodeep Nandi. FM's proposals aimed at protecting loss of livelihood; delivery will be key. The Finance Minister’s package announced on Thursday must be viewed as the second in the series of measures to be announced by the government to address the negative impact of the Covid-19 virus.
The first announced was in the area of compliances regarding time lines, which were relaxed by three months to June. The same is being done now for the poor in what can be called the second package, which is again looking at a three-month horizon. The outlay is to be Rs 1.7 trillion - around 0.75% of gross domestic product (GDP) and can be taken to be a fiscal stimulus. The variety of stimulus is, however, different as it is not for reinvigorating the economy but sustaining human life, which is the important goal given the disruption caused by the 21-day shutdown where several people have been displaced. The package looks at cash transfers as well as delivery of goods, which is good for the poor.
Madan Sabnavis is chief economist at CARE Ratings. Markets were being greedy; sops announced are the need of the hour. The proposals are direct humanitarian assistance provided to the masses and this was the need of the hour. The markets were being greedy and selfish to expect relaxation in long term capital gains tax (LTCG), changes in buyback norms and dividends. I don’t think in these times such measures are top of the mind agenda. Since the stock markets were expecting such proposals, we saw the indices trim gains. They do seem disappointed. Instead of helping the stock market, the government did the right thing by helping the masses. Banks plan to shut down most branches during coronavirus lockdown: Report. India's central bank and major lenders are considering shutting down most branches across the country to prevent tens of thousands of employees from getting infected with the coronavirus, four sources familiar with the plan told Reuters.
India is still very much a cash society and banks have been exempted from a 21-day lockdown that began this week as they are considered an essential service. Under the plan, in major cities there would likely be only one bank open every five kilometres, the sources said, declining to be identified as it has not yet been publicly disclosed. 'No work, no money': Coronavirus locks down hopes of thousands in Noida SEZ. There was a time when Mushtaq Ansari (25) would have to race to reach the Noida Special Economic Zone to catch the first shift that began at 7 am.
There was time only to gulp down a glass of milk and a piece of fruit. Now, there’s no rush. At 10 am, he was making leisurely inroads into a stack of paranthas with pickle and creamy dahi. MARKET LIVE: Sensex up 800 pts; FM announces relief package for poor. Covid-19: Centre to fast-track PM-KISAN disbursals for 85 mn farmers. In view of the Covid-19 crisis, the Central government will advance the first installment of PM-KISAN payout for the April-June quarter that will ensure that almost 85 million eligible growers get nearly Rs 16,000 crore by first week of April.
Officials said according to their estimates, around 85 million farmers are eligible to get the first installement of Rs 2,000 under PM-KISAN into their bank accounts by end of June 30, but due to the Covid-19 crisis, all of them will get it early. “We already have got approvals and in the process of finalising the disbursals which will ensure that around Rs 16,000 crore gets transferred into the bank account of farmers by first week of April,” a senior official said.
He said this will enable growers to somewhat tide over the difficult financial position due to closure of mandis and difficulties in selling their harvested produce. ALSO READ: Coronavirus LIVE. Covid-19 relief package: FM announces Rs 1.7 trn plan for poor and migrants. Quarantine within units, extended leave mark Armed Forces' war on Covid-19. Over three months since the outbreak of the coronavirus in China’s Wuhan province, India went into lockdown for a period of 21 days as the pathogen makes its way from one state to another. Spain overtakes China with 3,434 coronavirus deaths; EU extends solidarity. Spain's coronavirus death toll overtook that of China on Wednesday, rising to 3,434 after 738 people died over the past 24 hours, the government said. Govt likely to unveil Rs 1.5 trn stimulus for coronavirus downturn: Report. The government is likely to agree an economic stimulus package of more than Rs 1.5 trillion ($19.6 billion) to fight a downturn in the country that is currently locked down to stem the spread of coronavirus, two sources familiar with the matter told Reuters.
The government has not yet finalised the package and discussions are ongoing between Prime Minister Narendra Modi's office, the finance ministry, and Reserve Bank of India (RBI), said both the sources, who asked not to be named as the matter was still under discussion. One of the sources, a senior government official, said the stimulus plan could be as large as Rs 2.3 trillion, but final numbers were still in discussion. Food, medicine shops will remain open throughout 21-day lockdown: Govt. Capital Goods index hits over 6-year low; L&T down 51% in 2-months. Shares of engineering and capital goods companies were under pressure on Wednesday with the S&P BSE Capital Goods index hitting an over six-year low as the outbreak of coronavirus (Covid-19) outbreak, analysts say, may hit the infra capex worse than 2008 crisis. M&M hits lowest level since April 2010, stock tanks 51% in a month. Shares of Mahindra & Mahindra hit an over nine-year low of Rs 248, sliding 8 per cent on the BSE on Wednesday, on concerns that volumes could take a hit due to the spread of the coronavirus (Covid-19).
RIL surges over 9% on report Facebook eyeing stake in Reliance Jio. IRCTC hits lower circuit for 8th straight day, declines 58% in one month. Cruel to keep J&K leaders detained during Covid-19 lockdown: Omar Abdullah. A day after the former J&K CM was released from an 8-month long detention under the Public Safety Act, Omar Abdullah raised concerns on the continued detentions of the other leaders in the Valley. Abdullah urged the government to expedite the release of the politicians detained in Jammu and Kashmir and said it was cruel to continue their detention with the country entering a three-week lockdown period.
Best of BS Opinion: Other casualty of Covid-19, pharma security, and more. OYO offers free stay to medical staff, first responders in the US. Covid-19: GoAir is third airline to cut salaries, all staff to take hit. Sameer Aggarwal elevated to Walmart India CEO, takes charge on April 1. Covid-19 impact: Banks want NPA forbearance for next two quarters or more. OYO offers free stay to medical staff, first responders in the US. Coronavirus lockdown: Isolation may cut peak numbers by 89%, says ICMR. MARKET LIVE: US approves $2 trillion stimulus; Sensex surges 1,800 points. FB keen on buying 10% stake in Jio; Covid-19 may delay the deal: Report. Markets will be choppy amid 21-day lockdown; recovery to be slow, painful. Markets will be choppy amid 21-day lockdown; recovery to be slow, painful.
MARKET LIVE: Sensex jumps 500 pts on report deal reached on US aid package. Coronavirus lockdown: With no food or hope, truckers stranded across India. Coronavirus LIVE: By April, India could become Italy, warns microbiologist. Coronavirus LIVE: By April, India could become Italy, warns microbiologist. Covid-19: Govt directs states to transfer cash to construction workers. FM Sitharaman announces slew of relief measures, says bigger ones to follow. Coronavirus impact: As data usage jumps, telcos ask govt for more spectrum. UP to Kerala: How states are helping the poor amidst coronavirus outbreak. Maintain production line of essential commodities, PM Modi tells India Inc. Former J&K CM Omar Abdullah released after 8 months of detention under PSA. Coronavirus LIVE: By April, India could become Italy, warns microbiologist.
MARKET LIVE: Sensex jumps 900 pts as FM says economic package being readied. Allow employees to work from home, don't cut jobs: PM tells India Inc. Coronavirus: EPFO to disburse pension early to 6.5 mn account holders. Sell stocks and go! Difficult to predict when the market carnage will end. Govt amends law to get power to hike tax on petrol, diesel by Rs 8 per ltr. Domestic flights to be suspended as India strengthens coronavirus lockdown.
Maharashtra coronavirus curfew starts midnight; 'won't tolerate crowds' 108 stocks from BSE500 index tank over 50% in a month; IndusInd plunges 71% Grain cushion: India has enough stock to supply ration shops for 1 year. Covid-19: Govt tells companies to protect wages, not terminate workers. Coronavirus in numbers: Latest Covid-19 cases and deaths in India and world. Sebi order: Big institutions can hedge, but not speculate. Coronavirus outbreak: From Delhi to Maharashtra, states on a war footing. Coronavirus: India in lockdown mode; no trains or metros to run till Mar 31. Selling has been overdone, market is nearing a bottom. Sell stocks and go! Difficult to predict when the market carnage will end. Even the last Bull will think twice before buying in this market. Coronavirus LIVE: By April, India could become Italy, warns microbiologist.
Global corporate revenue to take $12 trillion hit due to coronavirus. MARKET LIVE: Sensex plunges 3,700 pts, Nifty below 7,700; banks bleed. 75 districts under lockdown to halt Covid-19 spread;interstate buses shut. Three more coronavirus deaths reported in India as states lock down. Coronavirus LIVE: India prepares for lockdown as death toll rises to 7. Airlines may ground 68% planes amid coronavirus outbreak, says govt. Hindustan Unilever sets aside Rs 100 crore to fight Covid-19 in India. Crude oil adds over 4%, gold and silver up as markets recover sharply. Metal prices likely to remain volatile over coronavirus concerns.
Coronavirus LIVE: Odisha announces week-long lockdown starting Sunday. Best of BS Opinion: Quarantined lives, journalism in time of corona & more. New draft defence procurement manual unveiled, aims to boost indigenisation. GoAir appoints aviation sector veteran Sanjiv Kapoor as its advisor. Coronavirus cases update on Saturday: 800 home quarantined in Aurangabad. Scrap LTCG, tax on buybacks, dividends: What Street wants amid market gloom. Explained in numbers: Coronavirus outbreak impact on businesses. RBI's coronavirus contingency plan: Keep it going from a secret location. Pneumonia patients to be tested for coronavirus after govt advisory. RBI extends regulatory restrictions on PMC Bank by 3 months till June. Govt caps maximum retail price of 200ml hand sanitiser at Rs 100 till June. Janata curfew: Autos, taxis extend support to move, to be off road in Delhi. LIC eyes sale of 25 mn indivijual policies, Rs 55k cr in premiums for FY20.
Covid-19: Railways relaxes refund rules for travel from Mar 21 to April 15. RBI's coronavirus contingency plan: Keep it going from a secret location. Coronavirus impact: NSE allows brokers to move trading terminals home. India Inc rules out cut in jobs and salaries amid coronavirus outbreak. RBI names R Gandhi, Ananth Gopalkrishnan addl directors on YES Bank Board. Jio tops mobile broadband speed in Feb, Vodafone leads in upload: Trai. Heat on govt to end Parliament session over self-quarantine by Raje, MP son. Maharashtra in partial lock down; shops & offices in Mumbai, Pune shut.