1. New Worry as Factory Output Shrinks in March
India’s factory output entered negative territory in March after a gap of 21 months, contracting 0.1% to signal a slowdown in consumption, as well as investment.
In February, the index of industrial production (IIP) was almost flat, growing at 0.1%.
Data released by the Central Statistics Office (CSO) on Friday showed that manufacturing, with 78% weightage in the index of industrial production (IIP), contracted 0.4% in March, while mining and electricity grew 0.8% and 2.2%, respectively.
(Source: LiveMint)
2. Hope Floats for Jet as Etihad Submits Bid for a Minority Stake
Etihad Airways PJSC said, on Friday, that it has submitted a binding bid to retain a minority stake in Jet Airways, raising fresh hopes for a revival of the cash-strapped airline. Etihad owns 24% in Jet Airways and, under current rule, can take this up to 49%.
Friday was the last day for submission of sealed bids to SBI Capital Markets Ltd (SBI Caps) for prospective investors for Jet Airways.
Soon after submitting the sole binding bid, Etihad said in a statement that it has been working consistently with key stakeholders in India over the past 15 months to help find a solution that would ensure Jet’s return as a viable and competitive Indian airline, and continues to do so.
(Source: LiveMint)
3. FinMin Says GDP Overestimation Due to MCA Data a 'Misconception'
Refuting charges that the GDP numbers put out by the government may be over-estimated due to 'shell' companies which are untraceable, the government has said that the extent of overestimation of GDP in all likelihood is marginal.
Clarifying the problem pointed out by the Technical Report of Services Sector Enterprises in India by the NSSO, a release from the government said that media has misinterpreted the out-of-survey enterprises (as classified for the purposes of surveying the services sector) to be enterprises that do not exist in the economy report.
(Source: Business Today)
4. SBI Q4 Results Miss Estimates on Higher Provisions to Reduce Debt
The State Bank of India has posted a profit of ₹838.40 crore for the fourth quarter, missing analysts’ estimates after making hefty provisions to pare bad debt. In the corresponding quarter last year, the bank had posted losses of ₹7,718.17 crore.
A Bloomberg survey of analysts had estimated a profit of ₹4,840.80 crore in the quarter, but provisions against bad loans surged 24% to ₹17,335.84 crore in the January-March period from ₹13,970.82 crore a quarter ago.
Provision coverage ratio, the amount set aside to cover non-performing assets, stood at 78.73%, compared with 66% during the same quarter last year.
(Source: LiveMint)
5. Global Growth to Be Hit This Much If Us-China Trade Conflict Persists: Morgan Stanley
The global growth will take a hit of as much as 30-40 basis points if the re-escalation of trade tensions between two superpower economies the US and China persist, Morgan Stanley said in a report this week. The global brokerage house said the re-escalation would be temporary as the market weakness would help bring both sides together. However, it reiterated if the trade tensions continue then the global growth would get most affected via capex and corporate confidence, as can be seen from the last round of escalating trade worries.
“Against that backdrop, global growth decelerated by 80 bps even though we did not reach the scenario where 25% tariffs were imposed fully,” said Morgan Stanley. The brokerage firm fears if the trade conflict persists between the two economic giants, there may be deeper global slowdown.
(Source: Financial Express)
6. Tata Steel-ThyssenKrupp JV May Not Get EU Nod
The European Commission is unlikely to give the go ahead to the European steel joint venture planned by Tata Steel and ThyssenKrupp, the two companies said on Friday following conversations with the regulator. The two companies may now have to reassess their plans for their European businesses’ future.
They said that while approval might have been possible were they to offer further remedies to allay concerns around the impact of the joint venture on the market, such solutions would negate the deal’s synergies and “adversely affect the basic foundation” of the joint venture.
(Source: The Hindu Business Line)
7. Urja Ganga Pipeline Project: GAIL Awards Tenders Worth ₹10,500 Crore
GAIL (India) Ltd has awarded contracts worth ₹10,500 crore to speed up the completion of the Jagdishpur-Haldia & Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) and the Barauni-Guwahati Pipeline (BGPL) pipeline.
Bids for pipe supply and laying for the integrated 3,400-km-long project, dubbed Urja Ganga pipeline project, have been awarded. A company statement said, “GAIL has placed an order worth ₹475 crore for steel line pipes of approximately 280 km to provide pipeline connectivity from Durgapur to Haldia, including spur line to Kolkata. Till date, the company has committed over ₹12,500 crore for the project.”
(Source: The Hindu Business Line)
8. Quantum Leap: India’s Forex Reserves up by $171.9 Million to $418.7 Billion
The country’s foreign exchange reserves increased by USD 171.9 million to USD 418.687 billion in the week to May 3, mainly on account of a rise in foreign currency assets, RBI data showed Friday. In the previous week, the reserves had swelled by USD 4.368 billion to USD 418.515 billion, helped by the second dollar-rupee swap auction held on April 23. In the reporting week, foreign currency assets, which are a major component of the overall reserves, rose by USD 448.3 million to USD 390.869 billion.
(Source: PTI)
9. Allahabad Bank's Q4 Loss Widens to Rs 3,834 Cr
Allahabad Bank Friday reported widening of net loss to Rs 3,834.07 crore during the fourth quarter of 2018-19 financial year due to mounting bad loans. The public sector lender's net loss in the year-ago period stood at Rs 3,509.63 crore.
However, total income during the March quarter of 2018-19 grew to Rs 4,602.86 crore from Rs 4,259.37 crore in the year-ago period, the bank said in a regulatory filing. For entire 2018-19 financial year, the bank's net loss expanded to Rs 8,457.38 crore from Rs 4,574.22 crore in the previous year.
Total income during the last fiscal was down at Rs 18,806.38 crore as against Rs 19,487.51 crore a year ago.
(Source: PTI)
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