1. Crisil, Icra Downgrade DHFL’s Commercial Paper Rating to Default
Credit rating agency Crisil on Wednesday said it has downgraded its rating on the commercial paper (CP) of Dewan Housing Finance Corporation Limited (DHFL) to D from A4+, citing delays in debt servicing.
This downgrade by a couple of notches follows the reported default by the non-banking financial company (NBFC) in paying interest on over Rs 900 crore of bonds on 4 June. A DHFL official who did not wish to be named said that as per the trust deed, in the event that payment of interest on the NCDs is not met on the due date, there is a cure period of seven working days to meet the obligation.
(Source: Livemint)
2. RBI May Make It Three Cuts in a Row to Boost Growth
The Reserve Bank of India’s monetary policy committee led by governor Shaktikanta Das will announce its policy decision on Thursday amid slowing economic growth and global uncertainty. The market is expecting a 25-basis point cut in key policy rates, along with a change in policy stance to accommodative from neutral.
Given the ongoing economic slowdown, with both the consumption and investment engines faltering, there are hopes that RBI will use monetary policy to stimulate the economy. The central bank’s actions will also set the stage for the Union budget that will be announced on 5 July.
(Source: Livemint)
3. Japan’s New Norms May Not Hurt Indian IT
Indian IT service providers may not be impacted by the Japanese government’s recent decision to restrict foreign ownership in high-tech companies, according to industry body Nasscom.
Japan has restricted foreign ownership in its information and communication sector effective 1 August, primarily to ensure a strong cyber security framework.
(Source: The Economic Times)
4. Govt Set to Upgrade CPI, IIP Series in 2020
The government is looking to bring out a new series for two key macroeconomic indicators — the Index of Industrial Production (IIP) and the Consumer Price Index (CPI) — in 2020, almost two years ahead of schedule. Both IIP and CPI are released on the 12th of every month.
The new series of the IIP will have a base year of 2017-18, while for the CPI, it will be 2019.
“There will be some additions and deletions, but the total number of product categories is likely to remain the same,” a senior government official told BusinessLine.
(Source: Business Line)
5. India May Have 88 Million 5G Connections by 2025: Telecom Industry Body
Global telecom industry body GSMA expects India to have 920 million unique mobile subscribers by 2025 which will include 88 million 5G connections. “5G connections in India are forecast to reach 88 million by 2025…This will leave India trailing regional peers such as China, which is set to see almost 30 per cent of its total connection base on 5G by 2025,” the GSMA Intelligence report released in May said.
It said there were close to 750 million unique subscribers at the end of 2018 and expected to reach almost 920 million by 2025.
“India alone will generate almost a quarter of the world’s new mobile subscribers over this period,” it said.
(Source: Financial Express)
6. Government Sets the Ball Rolling to Create More Jobs and Attract Investments
In its second term, the Narendra Modi administration has set up two cabinet committees to prioritize and seek solutions to two critical issues: creating new jobs and boosting investments.
The National Democratic Alliance (NDA) government, which returned to power last month with a landslide victory, wants to address economic headwinds head-on as it enters the budget session of Parliament that begins on 17 June.
A government official confirmed on Wednesday the setting up of the ministerial panels on “investment and growth" and “employment and skill development" that are led by Modi. An official notification was expected to be issued over the next few days, said another government official. Both of them spoke on condition of anonymity.
(Source: Livemint)
7. Down to a Few Paise: Debt-Ridden Firms’ Share Prices Crash as Liquidation Looms
In what could be termed a complete erosion of investor faith, shares of a number of debt-ridden companies are trading at dismal levels, some as low as 19 paise. Now stressed, and some under bankruptcy proceedings, many of these companies’ shares were trading as high as Rs 900 during their peak.
For instance, the share price of Uttam Value Steels closed at 19 paise, Sterling Biotech at 77 paise and Castex Technologies at 82 paise on Tuesday, while Punj Lloyd fared slightly better at Rs 1.69. RCom was at Rs 1.97 and Videocon Industries at Rs 2, while Bafna Pharmaceuticals closed at Rs 9.01, Monnet Ispat and Energy at Rs 21.30 and Usha Martin at Rs 30.95.
(Source: Business Line)
8. Gold Hits 3-Month High on Trade Tensions, Hopes for Fed Rate Cut
Gold prices rose 1% to a more than three-month high on Wednesday as trade tensions induced safe-haven demand and increased bets on a cut in interest rates by the U.S. Federal Reserve.
Spot gold gained 0.8% to $1,335.82 per ounce at 1144 GMT, having reached its highest since Feb. 21 at $1,340.08 earlier.
(Source: The Economic Times)
9. Govt Underpaid Food Subsidy Bill by Rs 69,394 Crore in FY19
The centre underpaid the food subsidy bill to the Food Corporation of India (FCI) by as much as Rs 69,394 crore in order to meet the fiscal deficit target of 3.4% of gross domestic product (GDP) in 2018-19. This rollover of the food subsidy bill, which is 41% of the budget estimate, was the highest during the first five years of the Narendra Modi government.
Of the total major subsidies, which include food, fertilisers and petroleum subsidies, only 74% was paid during 2018-19 against 83% a year ago, according to the Controller General of Accounts (CGA).
(Source: Livemint)
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