BUSINESS
Fear & Loathing: FY21 pent-up demand expected to fizzle away
At present, India suffers from a resurgence of Covid cases. However, a sharp decline in new infection rate has triggered hopes of economic normalisation. In contrast, low consumer sentiment as well as falling household income levels amid job losses will negatively impact the off-take of several sectors. Consequently, the current situation has led various multilateral organiations to revise India's GDP growth rate downwards.
Covid Stimulus: No big dent, moderate fiscal slippage expected
This would mean that fiscal deficit that is budgeted at 6.8 per cent of the GDP for FY22 may rise to 7.3 - 7.4 per cent level as a direct result of the stimulus that also includes subsidy increase for food and fertiliser sectors. "The fiscal impact of announcements made yesterday and earlier is not linear as substantial portion of the package is contingent liabilities.
Economic activities in rural India fared better in lockdown 2.0: Survey
The survey was carried out to assess the impact of COVID-19, with a sample size of 200 respondents across 48 villages in the states of Uttar Pradesh and Bihar. It was learnt that while overall economic activity in mini-grid villages was less affected in 2021, the impact on education and healthcare infrastructure was much worse compared to 2020.
Power reforms: Pvt genco dues head to 4-year low of less than 100 days
Liquidation of receivables from state power distribution companies (discoms) following the central government's Atmanirbhar stimulus, and better payment cycles on regular billings will drive the improvement, the ratings agency said in its fresh assessment of financial position of discoms. According to Crisil, the improved financials of discoms, in turn, would support credit profiles.
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Expect strong recovery in second half of 2021, says JCB India
Accordingly, the company has pinned hopes on the record high budget set aside to create infrastructure especially roads and highways. "Overall, we are hopeful of a strong recovery towards the second half of the year once the vaccination programs start showing their effect and the pandemic begins to taper," said JCB India's CEO and Managing Director Deepak Shetty.
Banking, oil & gas stocks pull indices lower
Around 12.25 Sensex was trading at 52,575 lower by 160 points, down from its previous close of 52,735.59. It opened at 52,795.76 and has so far touched an intra-day high of 52,816.42 and a low of 52,552.41 points. The Nifty50 on the National Stock Exchange was trading at 15,750.85, lower by 63.85 points or 0.4 per cent from its previous close.
Fuel price rise continues unabated, rates rise sharply again
The retail prices of petrol and diesel rose by a sharp 35 paise and 28 paise per litre on Tuesday to touch new high of Rs 98.81 and Rs 89.18 per litre respectively in Delhi. In the city of Mumbai, where petrol price crossed Rs 100 per litre mark for the first time on May 29, the fuel price reached new high of Rs 104.90 per litre on Tuesday. Diesel price also increased in the city to reach Rs 96.72 a litre, the highest among metros.
Post 2nd wave mayhem, government enhances funds for health infra
Accordingly, Finance Minister Nirmala Sitharaman announced an additional outlay of Rs 23,220 crore for public health. Addressing the media, Sitharaman said that the new scheme would be focused on short-term emergency preparedness with special emphasis on children and paediatric care and paediatric beds.
Domestic tractor volumes expected to grow 1-4% YoY in FY22: ICRA
"Even as uncertainty with regard to the evolution of the pandemic exists, the underlying demand drivers for the industry remain intact. Expectations of healthy rabi cash flows, continuation of various Government support programmes, healthy financing availability and a normal monsoon forecast, are likely to aid farm sentiments," the agency said.
NCLT grills IDBI Bank over settlement with Siva Industries: Report
The bench last week questioned the alacrity being shown by the lead lender IDBI Bank as CBI has charged C Sivsasankaran in a loan fraud case of IDBI Bank. The bench also asked the bank consortium in what capacity did the proposer give the settlement plan and the "real intent" behind the one-time settlement offer.
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