The benchmark stock indices opened the day on a poor note as surging coronavirus cases increased fears of a strict lockdown.
Join us as we follow the top business news through the day.
4:30 PM
Oil prices climb on favourable outlook for U.S. fuel demand
Bullish news for oil investors,
Reuters reports: “Oil was little changed on Monday amid hopes that fuel demand is picking up in the U.S. as the summer driving season approaches and COVID-19 vaccinations there accelerate, although rising case numbers in other countries are keeping a lid on prices.
Brent was up 2 cents at $62.97 a barrel by 0510 GMT, having risen to as high as $63.30. U.S. crude gained 1 cent to $59.49 a barrel, after rising as much as 46 cents earlier.
Prices have changed little since a period of volatile trading ended last Monday.
“At the moment, the market lacks direction,” the Schork Report, founded by Stephen Schork, said in a note. “We are waiting for a breakout of the current range.”
While the United States has fully vaccinated more than 70 million people, and in Europe new infection numbers are falling as lockdowns take effect, India is reporting record new cases and other parts of Asia are seeing caseloads rise.
That is likely to continue to keep a lid on any revival of global travel and keep prices rangebound as the summer approaches, analysts and traders said.
The U.S. economy is at an “inflection point” amid expectations that growth and hiring will accelerate in the months ahead, but faces the risk of reopening too quickly and sparking a resurgence in coronavirus cases, Federal Reserve Chair Jerome Powell said in an interview broadcast on Sunday.
“There really are risks out there. And the principal one just is that we will reopen too quickly, people will too quickly return to their old practices, and we’ll see another spike in cases,” Powell said in a CBS interview, recorded on Wednesday.
On the production side, no new oil drilling rigs were started in the United States in the most recent week, according to a widely watched report published by Baker Hughes.”
4:00 PM
Sensex nosedives 1,708 pts amid massive selloff; Nifty plunges below 14,350
A forgettable day for stock bulls.
PTI reports: “Equity benchmark Sensex plummeted 1,708 points on Monday following an across-the-board selloff as spiking COVID-19 cases in the country spooked investors.
The 30-share BSE index sank 1,707.94 points or 3.44 per cent to end at 47,883.38.
Similarly, the broader NSE Nifty plunged 524.05 points or 3.53 per cent to finish at 14,310.80.
IndusInd Bank was the top loser in the Sensex pack, tanking over 8 per cent, followed by Bajaj Finance, SBI, ONGC, Titan, M&M, Bajaj Finserv, ICICI Bank and Axis Bank. Dr Reddy’s was the sole gainer, climbing over 4 per cent.
“Domestic equities reminded the bloodbath of March 2020 as record rise in COVID-19 cases in the country and possibility of lockdowns in several states dented investors’ sentiments,” said Binod Modi, Head – Strategy at Reliance Securities.
Concerns of possible reversal in economic momentum and earnings recovery made investors risk-averse and huge selloff led to the erosion of nearly Rs 9 lakh crore in investor wealth, he added.
Elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo were in the red, while Seoul ended with mild gains.
Stock exchanges in Europe were largely trading on a positive note in mid-session deals.
Meanwhile, international oil benchmark Brent crude was trading 0.57 per cent higher at USD 63.31 per barrel.”
3:30 PM
Rupee slips below 75/USD level, logs 6th straight session of loss
Another poor day for the rupee.
PTI reports: “The rupee fell for the sixth straight session and settled 32 paise down at 75.05 (provisional) against the US dollar on Monday amid a lacklustre trend in the domestic equities ahead of the release of key macro-economic data.
Moreover, rising crude oil prices, foreign fund outflows and spiking COVID-19 cases weighed on the domestic currency.
At the interbank forex market, the local unit opened at 74.97 against the greenback and traded in the range of 74.78 to 75.14 during the day.
The rupee finally ended at 75.05 against the American currency, registering a fall of 32 paise over its previous close. On Friday, the rupee had settled at 74.73 a dollar.
“Indian rupee spot slipped past the 75-mark to nine-month low of 75.15 on Monday as rising COVID-19 cases sparked fears of a complete lockdown in Maharashtra and a few other states, dampening hopes of a faster recovery and increasing prospects of RBI’s ultra-loose monetary policy for a longer period,” said Kaynat Chainwala – Fundamental Research Analyst Currencies, Anand Rathi Shares and Stock Brokers.
Already, the domestic currency has been battered by 2 per cent since the RBI unexpectedly announced quantitative easing style G-sec acquisition programme (G-SAP) last week with the first auction aggregating Rs 25,000 crore to be held on April 15, 2021.
This is the sixth straight session of loss for the domestic unit, during which it has seen depreciation of 193 paise.
This week, the rupee is likely to weaken further as investors cautiously await India’s industrial output, manufacturing output, trade balance and inflation figures coupled with the first G-SAP auction.
Meanwhile, India hit a new coronavirus infection record with 1,68,912 new cases, the highest single-day rise so far, taking the total tally of cases to 1,35,27,717, according to official data.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05 per cent to 92.12.
Brent crude futures, the global oil benchmark, was trading 0.56 per cent up at USD 63.30 per barrel.
On the domestic equity market front, the BSE Sensex ended 1,707.94 points or 3.44 per cent lower at 47,883.38, while the broader NSE Nifty declined by 524.05 points or 3.53 per cent to 14,310.80.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 653.51 crore on Friday, as per provisional data.”
3:00 PM
At ₹410 crore, JC Flowers highest bidder for Sathavahana Ispat debt
JC Flowers Asset Reconstruction has emerged the highest bidder, with its bid of ₹410 crore, for acquiring the debt of Hyderabad-based Sathavahana Ispat.
A consortium comprising Canara Bank, State Bank of India (SBI), Union Bank and IFCI had called for bids for sale of the debt. Sathavahana Ispat owes them over ₹1,000 crore and the debt is classified as non-performing assets (NPA) in the books of the lenders for more than three years, a note said.
Four bids were received by the consortium. The other bids were from Maximus ARC for ₹380 crore; CFM ARC for ₹370 crore; and Welspun for ₹360 crore. Sathavahana Ispat is primarily engaged in manufacturing ductile iron pipes and pig iron. It also has a metallurgical coke plant.
Following evaluation of all four bids, the consortium formally selected J.C. Flowers as the H1 bidder. As next steps, and in accordance with due process, it is proposed to run a Swiss challenge process to maximise value (optimise the offer and discover better price for the lenders).
2:30 PM
Flipkart joins hands with Adani group
Flipkart, one of India’s largest e-commerce firms, has entered into a strategic and commercial partnership with the Gujarat-based Adani Group for logistics and data centre-related businesses.
In this partnership, Flipkart will work with Adani group’s entity Adani Logistics Ltd to strengthen Flipkart’s supply chain infrastructure and enhance its ability to serve its customers.
“Homegrown e-commerce giant Flipkart is our new strategic partner. In the two-prong partnership, AdaniConneX will build their new Tier 4 data centre and Adani Logistics, Indias leader in logistics, will build their 534,000 sqft fulfilment centre. Thousands of new jobs in Mumbai,” tweeted billionaire Gautam Adani’, announcing the deal.
2:00 PM
WeWork India raises Rs 200 crore from investors to grow biz, become profitable in 2021
The co-working major plans expansion in India.
PTI reports: “Coworking major WeWork India on Monday said it has raised Rs 200 crore from investors as equity and debt to grow its business and become profitable this year.
Bengaluru-based WeWork India, which provides flexible workspace to corporates and individuals, sold 10,000 desk during the January-March quarter comprising about 7 lakh sq ft office space.
WeWork said it has raised Rs 200 crore from investors through a mix of debt and equity.
“The new capital we have raised will help us in continuing our upwards momentum and truly explore the potential of flexible workspaces in the Indian market,” said Karan Virwani, CEO, WeWork India.
Stating that the future of flexible workspaces looks bright, he said the company has the right foundations and experience to provide safe, flexible options for companies and workforce of all sizes.
“While last year was challenging for the industry, we have seen a steady uptick in demand from members of all sizes, and we will continue to remain bullish and focus on the growth of flexible workspaces in the country.
“We are poised for sustainable long term growth and are aiming for profitability in 2021,” Virwani said.
The company’s focus would remain on providing a wide range of flexible offerings to meet its members’ evolving needs, he added.
In line with its long term growth strategy and aim for profitability, the company said it has reported most successful sales quarter yet.
With 10,000 desks sold, WeWork said it remains committed to supporting the growth of the flexible workspace industry while also meeting long term sales and revenue targets.
Despite the slow absorption for commercial real estate with 5.53 million sq ft leased in Q1 2021, WeWork remained bullish with driving sales and net absorption, with more than 7 lakh sq ft of area being sold (over 10 per cent of the total leasing in the market).
Over the last year, WeWork said it has seen a strong demand from enterprises that are now looking at flexible workspaces as a viable long-term real estate option.
WeWork’s enterprise portfolio has grown by 10 per cent jump and now constitutes 60 per cent enterprise members.
WeWork Global had in 2017 partnered with Embassy Group to enter Indian market.
In June last year, it had invested USD 100 million (about Rs 750 crore) in WeWork India.
WeWork India has over 5 million sq ft of space leased in 35 locations, across NCR, Mumbai, Bengaluru, Pune and Hyderabad.
Globally, as of Q1 2020, WeWork Global had 828 locations in over 149 cities and 38 countries.
Embassy Group is a major player in the Indian real estate market. It has also launched the country’s first real estate investment trust (REIT).”
1:30 PM
Passenger vehicle sales in India decline by over 2% in 2020-21: SIAM
The lockdown’s impact on the auto sector has been limited.
PTI reports: “Passenger vehicle sales in India declined by over two per cent in the 2020-21 fiscal as the COVID-19 pandemic has put brakes on the sector which has already been witnessing a structural slowdown over the last few years, industry body SIAM said on Monday.
As per the latest data by the Society of Indian Automobile Manufacturers (SIAM), in the 2020-21 fiscal, passenger vehicle wholesales declined by 2.24 per cent to 27,11,457 units as against 27,73,519 units in 2019-20.
Similarly, total two-wheeler dispatches during the last fiscal by companies to their respective dealer partners declined by 13.19 per cent to 1,51,19,387 units, as compared to 1,74,16,432 units in 2019-20.
Total commercial vehicles sales declined by 20.77 per cent to 5,68,559 units last financial year, as against 7,17,593 units in 2019-20.
Dispatches of three-wheelers saw a drop of 66.06 per cent in the 2020-21 fiscal at 2,16,197 units, as against 6,37,065 units in 2019-20.
Vehicle sales across categories declined by 13.6 per cent to 1,86,15,588 units, as against 2,15,45,551 units in the year-ago period.
“On the sales front, a deep structural slowdown in the industry even before the pandemic, combined with the impact of COVID-19 in 2020-21, has pushed all vehicle segments back by many years. Recovery from here will require time and efforts, by all stakeholders,” SIAM President Kenichi Ayukawa said.
There is uncertainty in the value chain owing to semiconductors, lockdowns and raw materials, he added.
“In an environment of uncertainty, instead of trying to predict the future, we will all work hard to create it,” Ayukawa noted.
SIAM has cited data in the past to show that the pandemic is not the only reason for the auto sector slowdown, which is facing deeper structural issues that need attention.
According to the findings of a research conducted by the industry body, compounded annual growth rates of all segments, including passenger vehicles, commercial vehicles, three-wheelers and two-wheelers have witnessed a continuous drop over the last three decades.
Elaborating further SIAM Director General, Rajesh Menon said in the last fiscal there was a de-growth in sales of all segments compared to the previous years.
“If we look at the fourth quarter January-March 2021 sales which might include some deferred sales from previous quarters, only passenger vehicle segment at 9.34 lakh sales was marginally above the previous high of January-March 2018 period at 8.62 lakh units,” Menon added.
Commercial vehicles sales at 2.1 lakh in January-March period of 2021 were below 2.82 lakh in January-March period of 2018, Menon noted.
“Similarly, two-wheeler sales in January-March 2021 stood at 43.54 lakh against January-March 2018 figures of 51.13 lakh units. Three-wheeler segment was the worst-hit with sales of 86,000 units in the period under review as compared to 1.97 lakh in January-March 2018,” Menon said.
In March, domestic passenger vehicle wholesales in India increased to 2,90,939 units in March as compared to the same month last year which saw disruptions due to the COVID-19-led lockdown.
Passenger vehicle sales in March 2020 stood at 1,35,196 units. Similarly, two-wheeler dispatches to dealers rose to 14,96,806 units, compared to 8,66,845 units in March 2020, SIAM said.
Motorcycle sales increased to 9,93,996 units as against 5,70,858 in March 2020.
Similarly, scooter sales were also up to 4,57,677 units, from 2,63,070 units a year ago.
Three-wheeler sales increased to 31,930 units, as compared to 27,608 units in March last year.
Vehicle sales across categories rose to 18,19,682 units last month, as against 10,29,518 units in the year-ago period.”
1:00 PM
Advertisers spent $240 billion on mobile ads last year: report
With smartphone apps becoming a dynamic digital space, advertisers spent over $240 billion on mobile ads, according to app analytics firm App Annie.
The average time spent by users worldwide on smartphones was 4.2 hours a day in the first three months of 2021, up by 30% from the same period in 2019. India recorded the biggest surge as consumers spent 80% more time in smartphone apps in the March-ended quarter compared with 2019, according to App Annie.
The global advertising market shrank 4.2% last year as an effect of the pandemic, with traditional marketing revenue from print, radio and out-of-home advertising decreasing more than 18%. However, digital advertising grew 8% in the same period, providing a lucrative market for brands, according to separate data by media research agency MAGNA.
12:00 PM
India must capture all segments of financial market to fuel growth: IMF
India is on the right track and is innovating on the policy side, including on digital identity and payments, but it also needs to capture all the segments of the financial market and institutions to make sure that every piece fits together like a puzzle to fuel growth in the country, according to a top IMF official.
“The goal is to have an economy and a financial system that can absorb shocks. ..Balance sheets can be better managed, Non-Performing Loans (NPLs) can be better managed,” Tobias Adrian, Director of the Monetary and Capital Markets Department of the International Monetary Fund (IMF) told PTI in an interview.
The non-bank financial system can be better seen, and capital markets have to be deepened and made more robust, he said during the last week’s annual Spring meeting of the IMF and the World Bank. Of course, there is the whole fintech agenda as well, which is important in India as it is everywhere else in the world.
11:30 AM
Investors’ wealth tumbles over Rs 6.86 lakh crore in morning trade as markets crack
The cost of today’s market crash.
PTI reports: “Investors’ wealth tumbled by Rs 6,86,708.74 crore in morning trade on Monday following massive losses in the equity market as sentiments remained muted amid increasing COVID-19 cases in the country.
The 30-share BSE benchmark index plunged 1,479.15 points to 48,112.17 in morning trade.
Tracking losses in equities, the market capitalization of BSE-listed companies eroded by Rs 6,86,708.74 crore to Rs 2,02,76,533.13 crore.
IndusInd Bank was the biggest loser among the 30-share companies pack, declining over 7 per cent, followed by SBI, Bajaj Finance and Axis Bank.
“Domestic equities do not look to be inspiring at the moment. A sharp increase in COVID-19 daily cases in the country, and possibility of large economic restrictions are expected to keep investors nervous in the near term. Further, the possibility of lockdown in large states like Maharashtra will weigh on investors’ sentiments.
“Additionally, recent weakness in INR may also aggravate investors’ concerns. However, 4Q FY21 earnings, wherein IT majors are scheduled to deliver their numbers this week, are to be in focus,” said Binod Modi, Head Strategy at Reliance Securities.”
11:00 AM
Rupee slips below 75/USD level in early trade ahead of release of key macroeconomic data
The rupee mirrors the weakness in stocks.
PTI reports: “The rupee opened on a weak note and fell below the 75 per US dollar level in early trade on Monday amid lacklustre opening in domestic equities ahead of the release of key macro-economic data.
Moreover, rising crude oil prices, foreign fund outflows, spiking COVID-19 cases and heavy selling in domestic equities weighed on the domestic currency.
At the interbank foreign exchange, the rupee opened at 74.97 then lost further ground and fell to 75.14 against the US dollar, showing a decline of 41 paise over its previous closing.
The Indian rupee on Friday had closed at 74.73 against the US dollar.
The rupee started on a weaker note against the US dollar weighed by the inflationary pressures on the economy ahead of the data tonight, Reliance Securities said.
Meanwhile, India hit a new coronavirus infection record with 1,68,912 new cases, the highest single-day rise so far, taking the total tally of cases to 1,35,27,717, according to official data.
Meanwhile, Brent crude futures, the global oil benchmark, rose 0.05 per cent to USD 62.98 per barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 653.51 crore on Friday, as per provisional data.
Domestic bourses opened on a weak note on Monday with benchmark indices Sensex trading 1,357.46 points down at 48,233.86 and Nifty down 402.35 points at 14,432.50.
Meanwhile, US consumer price data will be released Tuesday, while investors will also await the Fed Chair Jerome Powell speech on Wednesday at the Economic Club of Washington, the note said.”
10:30 AM
Prefer strict safety measures to partial lockdowns: India Inc
Cautioning that partial lockdown measures could impact the movement of labour and goods, leading to a decline of up to 50% in production, India Inc believes stringent implementation of safety norms is a better option than partial lockdowns, according to a survey by the CII.
The survey on the impact of partial lockdowns on industry, conducted among 710 CEOs and senior industry leaders from manufacturing and services sectors, comes at a time when several States are imposing restrictions such as night curfew and full lockdowns amid a surge in COVID-19 cases.
“Three out of four respondents feel that the implementation of night curfew or a partial lockdown will impact movement of labourers and workers to factories and workplaces, respectively. Out of these respondents, a further majority (52%) foresee a fall in production/sales ranging between 10%-50%, on a monthly basis, due to the restricted movement of labour,” the CII said.
10:00 AM
Indian shares slide as COVID-19 cases continue to surge
Lockdown fears sink markets.
Reuters reports: “Indian shares plunged on Monday amid a relentless surge in coronavirus cases and as the hardest-hit state of Maharashtra considers a lockdown, threatening to derail a recovery in Asia’s third-largest economy.
The NSE Nifty 50 index was down 2.25% at 14,506.25 by 0350 GMT, while the S&P BSE Sensex was 2.19% lower at 48,500.79.
Stocks across most industries declined, with financial shares being hit the hardest. HDFC Bank and HDFC were the two biggest drags on the Nifty 50, falling nearly 3% each.
The western state of Maharashtra, home to India’s financial capital of Mumbai, is considering a lockdown and could take a final decision this week, a senior government official said.
India’s corporate earnings season kicks off from Monday, with software services firm Tata Consultancy Services expected to report March-quarter results.
Data on the country’s retail inflation for March is also expected later in the day. A Reuters poll of economists predicts that the reading likely edged up to a four-month high in March, led by higher food and fuel prices.”
9:30 AM
Investment projects bounce back in Q4: report
Fresh investments rebounded strongly in the last quarter of 2020-21, with both private sector and government-backed capital spending taking off sharply for the first time in the pandemic-hit year, even as the project execution ratio, which denotes actual ground-level action, hit a five-year high.
The Q4 surge drove up the overall fresh investments in 2020-21 to ₹10.72 lakh crore, just 1.2% below the 2019-20 levels, although investments had plummeted sharply that year from ₹16.87 lakh crore in 2018-19.
New project investments in the January to March 2021 quarter hit almost ₹4 lakh crore, nearly ₹1 lakh crore or 33.4% higher than the previous quarter, according to the latest Projects Investment Survey by Projects Today.
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