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QBiz: World Bank Cuts GDP Forecast; IRCTC’s Stock Market Debut

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1. World Bank Says India Faces Severe Slowdown, Slashes FY20 GDP Forecast to 6%

The World Bank slashed its economic growth forecast for India to 6% for the current fiscal from its April projection of 7.5%, citing a broad-based and severe cyclical slowdown.

Growth is expected to gradually recover to 6.9% in 2020-21 and to 7.2% the following year, the Washington-based bank said in its South Asian Economic Focus report released on Sunday.

The World Bank joins a parade of multilateral institutions, rating firms and brokerages in cutting economic growth estimates for India, after Asia’s third-largest economy grew at the slowest pace in six years in the June quarter because of a demand slump.

(Source: Livemint)

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2. IRCTC to Make Stock Market Debut on Monday

Indian Railway Catering and Tourism Corporation (IRCTC), which recently concluded its ₹645-crore initial public offering, will make its stock market debut on Monday.

The shares will be listed on the BSE and the National Stock Exchange (NSE).

"Effective from Monday, 14 October 2019, the equity shares of IRCTC Ltd shall be listed and admitted to dealings on the exchange in the list of 'B ' Group of Securities," BSE said in a circular.

The IPO, which was open for subscription between 30 September and 4 October, was subscribed 112 times at a price band of ₹315-320 per share.

(Source: Livemint)

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3. Govt to Check Lenders’ Use of IBC over Minor Delays in Repayments

The government is set to curb lenders’ penchant to drag companies to bankruptcy courts at the slightest delay in loan repayments through a change in the insolvency code, amid rising strain on balance sheets because of a slowing economy.

The idea is to prevent the aggressive use of the insolvency and bankruptcy code (IBC) as a recovery tool by lenders by rebalancing the rights of lenders and loan defaulters, a government official said on condition of anonymity.

“Bankruptcy code should not be the first resort for a lender for handling a default, especially in the case of micro, small and medium enterprises (MSMEs). Some changes will be built into the code to ensure that. The government is cognizant of the abuse of the IBC," the official said.

(Source: Livemint)

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4. Infosys Fares Better Than TCS, but IT Sector Is Unmistakably Slowing down

Momentum is on the side of Infosys Ltd after Tata Consultancy Services Ltd (TCS) reported a drop in revenue growth to single-digit levels in the September quarter, Infosys Ltd continued with double-digit growth for the fourth straight quarter.

Infosys’s revenue grew 11.4% in constant currency terms, on the back of strong double-digit growth in nearly all of its business verticals. At TCS, growth in constant currency fell to 8.4% in the September quarter, from 10.6% in the preceding three months.

While Infosys may be better off than TCS, growth is unmistakably slowing down for both of India’s largest IT services companies.

(Source: Livemint)

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5. Foreign Investors Pull Out Over Rs 6,200 Crore in Oct 2019

Foreign portfolio investors withdrew over Rs 6,200 crore from Indian capital markets in the first two weeks of October, as global recession fears and trade war concerns weighed on sentiments.

Foreign investors pulled out a net amount of Rs 4,955.2 crore from the equities and Rs 1,261.9 from the debt segment, taking the total net withdrawal to Rs 6,217.1 crore during 1-11 October, as per latest depositories data.

Overseas investors were net buyers in the preceding month and had infused a net sum of Rs 6,557.8 crore in the domestic capital markets (both equities and debt), according to the data.

(Source: BloombergQuint)

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6. Finance Minister Sitharaman To Meet CEOs Of PSU Banks On 14 Oct

Finance Minister Nirmala Sitharaman will hold a review meeting with the Chief Executive Officers of public sector banks next week to discuss various issues, including progress on credit offtake. The meeting, scheduled to be held on 14 October, is expected to review fund flow to stressed non-banking financial company and micro, small and medium enterprises sectors, sources said.

Banks are expected to present report card on partial credit guarantee scheme and fund raising from market to enhance their capital base.

The Centre in August issued guidelines on operationalising Rs 1 lakh crore partial guarantee scheme under which PSBs can purchase high-rated pooled assets of financially sound NBFCs.

(Source: BloombergQuint)

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7. Keeping Us out of 5G Will Be a Loss to Industry, Users: Huawei India CEO

Chinese telecom equipment maker Huawei has asserted that keeping the company out of the 5G play in India will be a "loss" to telecom operators, end consumers and vertical industries that could be potential beneficiaries of the futuristic technology.

Huawei India CEO Jay Chen told PTI that that the company does not wish to get caught in geopolitical crossfire, and that it remains fully committed to complying with the laws of the land, riding on the strength of its technology.

The comments assume significance as the US has blacklisted Huawei and is now persuading its allies to block the world's largest provider of networking gear and No.2 smartphone maker from their new mobile networks.

Chen said it is now an "accepted fact that Huawei's technology is much ahead of the industry", and that the company is a "frontrunner in 5G".

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8. Morgan Stanley, Ex-Employees' Fund Bet on India's Warehousing Space

Morgan Stanley and a fund management company set up by its former executives are getting aggressive in the country’s warehousing space.

Morgan Stanley, which discontinued investing in the real estate sector a couple of years ago, has bought majority stakes in a warehousing developer and other such projects this year.

Recently, Morgan Stanley Real Estate Investing (MSREI), the real estate investment management arm of Morgan Stanley Investment Management, purchased a controlling stake in warehousing project built by the Pragati Group in the National Capital Region (NCR) region.

The 30-acre project is located on NH 8 and branded as Pragati One.

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9. Fuel Payment Issues with Oil PSUs Will Be Resolved Soon: Air India

State-owned Air India on Sunday said the aviation jet fuel payment issues are being sorted out and will be resolved soon with the oil PSUs, which have warned the carrier of snapping supplies at six key airports if it does not make monthly lump sum payment by 18 October.

The airline also "assured" its customers of smooth operations, saying it has taken all the measures in the eventuality of the two sides failing to reach an understanding on the issue.

"The issues with oil companies are being sorted out and would be resolved early," Air India spokesperson Dhananay Kumar said in a statement.

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Topics:  Indian Economy   QBiz 

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