This is a roundup of the day’s top stories in brief.
1. India Inc. Lines Up For Dollar Loans
Indian companies are lining up the most dollar loans since the pandemic worsened, as stimulus steps boost investor sentiment and help ease a credit crunch.
- Borrowers have sought at least $5 billion of dollar facilities since July 1 since the Covid-19 crisis dragged volumes to the lowest since 2009 in the three months through June.
- The financing may help companies which have $12.6 billion of offshore bond and loans maturities next quarter.
Read more about India’s credit crunch easing.
2. No RBI Bonanza For Central Government This Time
The Reserve Bank of India’s surplus transfer to the government for 2019-20 fell sharply compared to a year ago as the central bank earned less from bond holdings and did not have any one-time gains to transfer unlike in the previous year.
- RBI central board approved a Rs 57,128 crore transfer to the government for the accounting year 2019-20, it said in a release on Friday.
- The transfer, while lower than last year, is in line with what the government had budgeted for.
- The central bank’s detailed balance sheet will be released at the end of August when it publishes its annual report.
Know more about the factors behind the fall.
3. Lutyens Delhi Seeing Distress Sales?
The pandemic’s been so bad for India’s property market that even the nation’s most elite neighbourhood, Delhi’s Lutyens Bungalow Zone, known for its proximity to the corridors of power is engulfed in the crisis.
- The heritage zone, that includes Parliament House, Rashtrapati Bhawan, India Gate, Supreme Court, Prime Minister’s Office and central ministries, has seen a surge in properties out in the market on distress sale.
- One expert says property rates have fallen by 5-10%
“In a never-before scenario, around 20 to 25 bungalows of mixed sizes between 375 square yards to more than an acre are currently available for sale," said Mohit Minocha, founder of SouthDelhiFloors.com.
Read more expert views on Delhi’s luxury homes market here.
4. Auto Stocks Put The Brakes On Sensex, Nifty
Indian equity markets ended a week of consolidation with losses, as benchmark indices continued to face pressure at higher levels.
- The S&P BSE Sensex ended 1.13% lower at 37,877 while the NSE Nifty 50 index ended 1.08% lower at 11,178.
- Auto and PSU Banks were the top laggards.
- The Auto index snapped an eight-day gaining streak – Eicher Motors (down 7.1%), Tata Motors (down 4.8%) and M&M (down 3.3%).
Follow the day’s trading action here.
U.S. stocks lingered near all-time highs while investors digested reports showing the economic recovery slowed.
The yield on 10-year Treasuries fell two basis points to 0.70%, the first retreat in more than a week.
The dollar weakened after the of retail purchases increased 1.2% from the prior month after an upwardly revised 8.4% gain in June.
Gold edged lower following two days of gains, while oil headed for a second weekly advance.
- The S&P 500 Index dipped 0.2% to 3,373.43 as of 11:04 a.m. New York time.
- The Dow Jones Industrial Average fell 0.3% to 27,896.72.
- The Nasdaq Composite Index gained 0.3% to 11,042.50, the highest in more than a week.
Track all the global market action here.
5. Hindalco’s First Loss In 18 Quarters, NTPC In The Red Too
Hindalco Industries Ltd. has reported its first loss in 18 quarters as volumes fell after the coronavirus lockdown disrupted economic activities.
- Aluminium metal sales fell 5% year-on-year to 303 kilotonnes
- Net loss for Hindalco stood at Rs 40 crore, worse than estimated.
- Ebitda margin expanded to 7.72% from 7.14% a year ago.
NTPC’s profit fell during the June quarter due to a rebate provided to state power distribution companies.
- The company's revenue declined 3.1% over the year ago to Rs 23,453.5 crore, higher than estimated.
- Net profit fell 5.1% year-on-year to Rs 2,470 crore.
- NTPC extended a Rs 803 crore rebate to power discoms under the Atmanirbhar Bharat Special Economic and Comprehensive package.
6. Supreme Court Finds Prashant Bhushan Guilty Of Contempt Of Court
The Supreme Court of India found Advocate Prashant Bhushan guilty of contempt of court over his tweets against Chief Justice of India SA Bobde. The top court will hear arguments on sentencing on Aug. 20.
"The tweets which are based on the distorted facts, in our considered view, amount to committing of ‘criminal contempt’," said the Supreme Court bench of Justices Arun Mishra, BR Gavai and Krishna Murari.
The maximum sentence under the contempt law is six months imprisonment or fine up to Rs 2,000 or both.
Here’s more on the two tweets and 108-page order.
7. Taxman Is Watching Your High Value Transactions
Hotel bills above Rs 20,000, education fee over Rs 1 lakh, and purchase of jewellery and white goods d above Rs 1 lakh may come under the Income Tax department’s scanner, according to proposed measures to widen the tax base.
- High- transactions at present are required to be filed in ‘Statement of Financial Transactions’.
- The government is now proposing to expand the scope of reporting high transactions in a push to improve compliance and transparency.
- It’s also proposed that a person making bank transactions above Rs 30 lakh should mandatorily file an income tax returns.
Know what else is on the taxman’s radar.
8. 67,000 New Covid-19 Cases in India In A Day
Coronavirus infections in India continue to race ahead with the country reporting its biggest single day spike in new Covid-19 cases.
- India added nearly 67,000 cases in a matter of 24 hours, taking the total tally to 24.6 lakh in the world’s third-worst infected country.
- This includes over 48,000 deaths and more than 17.5 lakh patients who have recovered.
Meanwhile, France said the situation is worsening.
Spain closed nightclubs.
In New Zealand, Prime Minister Jacinda Ardern extended the lockdown in Auckland.
Follow Covid-19 updates for India here and global updates here.
9. Fintech Firms Eye India’s Attempt To Share Non-Personal Data
Payment companies and fintech firms are closely watching a potential change in regulations governing non-personal data, with some seeing it as a potential threat to business models while others are hoping that it will open up new business opportunities.
A government-appointed panel made a case for regulation of non-personal data. Where the report becomes contentious is in its suggestion that companies will have to register themselves as data businesses, and if they collect or process data above a certain threshold, they can be mandated to share their meta-data with others through data custodians and data trusts.
Expert are divided in their opinions.
10. India Needs To Shift From Passive to Aggressive Regionalism
Nearly three-quarters of a century after Britain partitioned India effective Aug. 15, 1947, modern Indian politicians faced a challenge the country’s Founding Fathers could not have foreseen: rewriting India’s trade laws and policies.
Jawaharlal Nehru, Mohandas K Gandhi, and BR Ambedkar thought laterally across multiple disciplines. Today’s leaders include shrewd technocrats with Hindu nationalist biases presiding over unconnected fiefdoms.
What they must do is ditch India’s long-standing commitment to multilateralism, and rewrite India’s trade history by shifting from Passive to Aggressive Regionalism. To do so, they must think like the Founders, that is, synthetically, integrating free trade doctrine with national security and public health imperatives, and act in unison.
On the eve of Independence Day read Raj Bhala’s column: India At 73 Needs A New Trade Legacy: Aggressive Regionalism
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