1. Biggest Crash Ever Makes India Worst Performing Market in the World
The Nifty50 index saw its sharpest one-day fall on Monday, crashing 13 percent, as the virtual shutdown of the economy to contain the spread of coronavirus spooked investors. The selloff was so severe that it shaved off a record Rs 14 trillion of market capitalisation. Over the weekend, the Centre and many state governments announced lockdowns, bringing the economy to a grinding halt, as the tally of those infected surged past 450 and the death toll reached nine, raising fears of a community spread.
Market experts said investors were afraid of the unprecedented disruption to business activity pushing the country into a prolonged recession if the outbreak did not stem. The Nifty dropped 1,135 points, or 13 percent, to close at 7,610, the lowest since April 8, 2016. This was the steepest fall for the index, both in percentage and point terms.
(Source: Business Standard)
2. RBI Advances OMO Date, Announces Repo of Rs 1 Trn in Two Tranches
The Reserve Bank of India (RBI) will be holding repo operations of Rs 1 trillion in two tranches to meet frictional liquidity needs, the central bank said on Monday even as it advanced a secondary bond-buying plan scheduled next week.
The variable rate 16-day repo operations, in which the central bank infuses liquidity in the system, will be held on Monday and Tuesday, “as a pre-emptive measure to tide over any frictional liquidity requirements on account of dislocations due to COVID-19,” the central bank said in a communiqué.
The central bank will also reschedule open market operations (OMO) of Rs 15,000 crore, in which it buys bonds from the secondary market, to 26 March from 30 March scheduled earlier, it said.
(Source: Business Standard)
3. No Salary Deduction for Contractual Staff During COVID-19 Lockdown: Centre
The Central government issued an order on Monday saying that the salaries of the contract workers associated with its offices will not be deducted if they were compelled to stay at home during the coronavirus pandemic.
As a measure of social distancing and to contain the spread of the virus, many state governments have announced a lockdown in India. In the government offices, only officials who are required for delivering ‘essential services’ are reporting to work, according to a recent directive by the central government. Hence, most of the contractual staff has been asked not to come to office for work.
(Source: Business Standard)
4. Centre to Hike Excise Duty on Petrol and Diesel by Rs 8 Per Litre Each
With an aim to widen the tax net and plug evasion, Finance Minister Nirmala Sitharaman on Monday took authorisation to hike excise duty on petrol and diesel by Rs 8 per litre, besides imposing a digital tax on foreign e-commerce players.
The digital tax at the rate of 2 percent may particularly come as a setback to Chinese e-commerce players like AliExpress, Shein, and Club Factory selling in India.
A provision for this in the Finance Bill was among the more than 40 changes in the Finance Bill, introduced in the Lok Sabha. It was passed without a discussion.
(Source: Business Standard)
5. Coronavirus: EPFO to Disburse Pension Early to 6.5 Mn Account Holders
The Employees’ Provident Fund Organisation (EPFO) will disburse monthly pension to its 6.5 million account holders before the end of this March, in a bid to help subscribers tide over the outbreak of the COVID-19 coronavirus.
“Due to the corona virus pandemic, lock down has been declared in various parts of the country. In order to ensure that no inconvenience is caused to the pensioners on account of the prevalent situation, (the) Central Provident Fund Commissioner (of the EPFO) has directed the field offices to generate and reconcile pensioners’ details and pension amount statements for the current month by 25 March, 2020,” a statement issued by the labour and employment ministry on Monday said.
(Source: Business Standard)
6. Gold Prices Fall Sharply, Down Over Rs 1,000 Per 10 Gram From Highs
Reversing early gains, gold prices today fell sharply in Indian markets, tracking a decline in global rates. On MCX, April gold futures fell 1 percent to Rs 39,895 per 10 gram, after rising as much as to Rs 40,937 earlier in the session. Silver rates also pared gains and were up 0.16 percent higher at Rs 36,600 per kg.
Gold prices in India have seen a sharp correction since hitting a record high of about Rs 45,000 per 10 gram, tracking similar movement in global rates. Despite today's upmove in gold prices, the precious metal is down over Rs 4,000 per 10 gram in about two weeks in domestic markets.
(Source: Livemint)
7. Rupee Falls Beyond 76 Per USD for First Time
The rupee today fell sharply against the US dollar, weakening past the 76 per dollar mark for the first time. The rupee fell to a record low of 76.32 per US dollar, before closing at 76.29, against previous close of 75.19.
The rupee on Monday opened at 75.69 amid a broad strengthening of the US dollar against other major currencies. Domestic equity markets fell sharply today with Sensex crashing about 4,000 points, its biggest one-day fall ever amidst concerns about the increasing number of coronavirus cases in the country.
(Source: Livemint)
8. Coronavirus Impact: Govt Bans All Passenger Flights From 25 March
India will ban passenger flights on all domestic routes from Tuesday midnight in a desperate bid to arrest the spread of the deadly COVID-19 pandemic in the world’s second-most populous nation.
“Domestic scheduled commercial airlines shall cease operations with effect from 25 March," a senior government official said on Monday. Dedicated cargo airlines would be exempted from the suspension, the official said.
The official said all airlines will have to plan operations in such a way so that they are able to land by 23.59 hours on 24 March.
(Source: Livemint)
9. India to Levy New Tax on Foreign E-Commerce Companies
India will levy an equalisation levy of 2 percent on sales made by foreign e-commerce companies in the country.
This will impact those companies that don’t have a base in India, but sell their goods here. The levy would be imposed on those companies that have a turnover or sales of over Rs 2 crore in the previous year, according to amendments to the Finance Bill 2020 that was approved by the Parliament today.
These companies will have to pay the 2 percent equalisation levy quarterly from 1 April.
(Source: BloombergQuint)
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