Rupee slumps 30 paise to 74.40 against the US dollar in early trade

 

The rupee deteriorated 30 paise to 74.40 against the US dollar in opening exchange on Monday following quieted homegrown values and solid American cash in the midst of worldwide hazard avoidance.

The neighborhood unit opened at 74.40 at the interbank forex market, down 30 paise over its last close.

On Thursday, the rupee had declined further by 23 paise to close at a two-month low of 74.10 against the US cash.

Forex market was shut on Friday by virtue of Id-E-Milad.

Misfortunes in homegrown securities exchanges and vulnerability in front of US official political race burdened the financial specialist notion, dealers said.

"We may keep on observing offers in USD/INR because of generally worldwide hazard avoidance. 74.95 is an incredibly pivotal obstruction. 73.65 is presently liable to go about as a help. We expect an intraday scope of 74.25-74.65," said Abhishek Goenka, Founder and CEO, IFA Global.

Goenka further added that "we have the US official political race on November third (Tuesday), Reserve Bank of Australia rate choice on Tuesday, Bank of England on Thursday

Then, the dollar list, which measures the greenback's quality against a bushel of six monetary standards, rose 0.13 percent to 94.15.

On the homegrown value market front, the 30-share BSE benchmark Sensex was exchanging 129.29 focuses lower at 39,484.78 and the more extensive NSE Nifty fell 40.45 focuses to 11,601.95.

Unfamiliar institutional financial specialists were net dealers in the capital market as they offloaded shares worth Rs 870.88 crore on a net premise on Friday, as per temporary trade information.

Brent unrefined prospects, the worldwide oil benchmark, fell 3.22 percent to USD 36.72 per barrel.

Rupee rises 5 paise to 73.28 against US dollar in early trade

 

The rupee opened on a level note and crept 5 paise higher to 73.28 against the US dollar in early exchange on Thursday upheld by certain homegrown values and frail American cash.

Merchants said speculators are careful in front of the RBI Monetary Policy Committee (MPC) choice on Friday.

At the interbank forex market, the rupee was exchanging a limited range. It opened at 73.29 against the American money, increased some ground and contacted 73.28, up 5 paise from its past close.

On Wednesday, the rupee settled at 73.33 against the US dollar.

"While the regular propensity for the rupee is to reinforce in the background of a frail US dollar worldwide, nationalized banks likely for the Reserve Bank purchase the plunges to around 73.10 forcefully," said Abhishek Goenka, Founder and CEO, IFA Global.

Goenka further included "we are probably going to see another calm, extend bound meeting in front of the MPC choice on Friday".

The recently comprised MPC of the Reserve Bank started its three-day consultations on Wednesday. The choice of the rate-setting board will be declared on October 9.

Then, the dollar list, which checks the greenback's quality against a crate of six monetary standards, fell 0.05 percent to 93.58.

On the homegrown value market front, the 30-share BSE benchmark Sensex was exchanging 450.46 focuses higher at 40,329.41, and the more extensive NSE Nifty rose 124.05 focuses to 11,862.90.

Unfamiliar institutional financial specialists were net purchasers in the capital market as they bought shares worth Rs 1,093.81 crore on Wednesday, as indicated by trade information.

Brent unrefined fates, the worldwide oil benchmark, rose 0.24 percent to USD 42.09 per barrel

Lockdown controlled Covid-19, time to give economy importance: PM Modi

Prime Minister Narendra Modi on Monday conveyed to chief ministers that the country will have to give importance to the economy as well as to continue the fight against coronavirus.
The prime minister interacted with chief ministers as in a video conference and highlighted the importance for states to enforce prescribed guidelines strictly in the hotspots, the government said in a statement.
The prime minister also underlined that the lockdown has "yielded positive results as the country has managed to save thousands of lives in the past one and a half months."
"Prime Minister said that the country has seen two Lockdowns till now, both different in certain aspects, and now we have to think of the way ahead. He said that as per experts, the impact of coronavirus will remain visible in the coming months," the statement added.
Civil defence officials wear protective suits to help a man who was lying on the roadside near Hebbal flyover during a nationwide lockdown imposed in the wake of novel coronavirus pandemic, in Bengaluru. Photo: PTI
 Civil defence officials wear protective suits to help a man who was lying on the roadside near Hebbal flyover during a nationwide lockdown imposed in the wake of novel coronavirus pandemic, in Bengaluru. Photo: PTIModi also said that masks and face covers will become part of the lives of people in the days ahead, adding everyone's aim must be to ensure rapid response under the current circumstances.
Among those present at the virtual meet, included Home Minister Amit Shah, Health Minister Harsh Vardhan, and top officials from the PMO and the Union Health Ministry. The chief ministers who attended the meeting included Arvind Kejriwal (Delhi), Uddhav Thackeray (Maharashtra), E K Palaniswami (Tamil Nadu), Conrad Sangma (Meghalaya) Trivendra Singh Rawat (Uttarakhand) and Yogi Adityanath (Uttar Pradesh).

This is Modi's fourth such interaction with state chief ministers since March 22 when he first spoke to them on the coronavirus situation. Two days later on March 24, Modi announced a 21-day nationwide lockdown, which was further extended till May 3. Besides discussing the way forward in dealing with the pandemic, the prime ministers and chief ministers also focussed on a "graded" exit from the lockdown.

All banking services to resume from evening; ATMs have cash: YES Bank

International News
Amazon.com Inc will just get imperative supplies at its US and UK and other European stockrooms until April 5, its most recent move to let loose stock space for clinical and family unit merchandise popular because of the coronavirus flare-up.
The change doesn't imply that Amazon will quit selling insignificant things like telephone cases and toys for the present, just that items might be bound to come up short on stock in the following scarcely any weeks or dealers need to deliver the items legitimately to buyers themselves.
In a note sent to venders on Tuesday, Amazon said it is seeing expanding web based shopping request from purchasers. As its family unit staples and clinical supplies are coming up short on stock, it will organize certain classes so as to "rapidly get, restock, and transport these items to clients."
Amazon characterized a few classifications as basic items that can keep shipping, including infant items; wellbeing and family unit things; excellence and individual consideration; basic food item; modern and logical; and pet supplies. Books are incorporated also.
"We comprehend this is a change for our selling accomplices and value their understanding as we incidentally organize these items for clients," Amazon said in an announcement.

The organization said the new convention applies to both first-party merchants and outsider dealers. That proposes that the organization isn't securing its own items.…Read More

No fresh investment, redemption for mutual fund investors on Budget day

Budget 2020
Shared finances financial specialists won't have the option to make crisp speculation or sell their units on the Budget day since membership and reclamation are shut on Saturdays and Sundays, industry authorities said.
Shared supports memberships and recoveries won't be allowed on the grounds that all the reserve houses in their plan data reports have announced Saturday and Sunday as "non-business day".
Thus, shared supports speculators won't have the option to partake like others members in financial exchanges. On Saturday, stock trades are open however shared assets are shut for membership and recoveries, said Omkeshwar Singh, head of common reserve circulation business at Samco.
Financial specialists through value and subordinates can partake yet speculators through shared supports won't have the option to take an interest, he included. If there should be an occurrence of any change in non business day, finance houses need to give notification to speculators and distribute notices in driving papers which is a protracted procedure.
Securities exchanges will be open for typical exchanging on February 1, Saturday, when the Union Budget will be exhibited by Finance Minister Nirmala Sitharaman.
Exchanging would be directed during typical hours from 9 am to 3.30 pm.

As indicated by business sectors sources, the choice has been taken after solicitations made right now advertise members as Budget contains a few market-moving declarations. In 2015, stock trades were open for exchanging on February 28, Saturday, when at that point Finance Minister Arun Jaitley had displayed the Budget...Read More

A long list of economic problems await Hong Kong. How they can be fixed

International News
Beyond Hong Kong’s current political turmoil, a long list of economic problems await the city’s current and future rulers.
Carrie Lam, Hong Kong’s chief executive, on Wednesday unveiled more than 220 initiatives in housing, land supply and livelihood support, in a recognition that economic policy has a role to play in alleviating some of the city’s frustrations. She also acknowledged that Hong Kong entered a recession in the third quarter and warned of an “unprecedented” economic challenge.
That’s a start, though observers say the long-standing growth model -- as a low-tax, low-regulation entrepot for finance and trade -- has become an element in the political unrest, rather than the main solution.
Huge income inequality, markets controlled by insiders and a spiraling cost of living -- especially of housing -- are by now hallmarks of Hong Kong’s brand of capitalism, alongside the “world’s freest economy” label perennially awarded by The Heritage Foundation, a conservative-leaning U.S. policy group.
From using the city’s fiscal firepower to breaking the dominance of conglomerates and raising the standard of public facilities, there exists a range of proposals from economists and other experts for a way forward. In some areas, the government is already moving ahead. In others, a fundamental shift -- and the political consensus to make it -- is required.
Use Reserves to Tackle Housing

Many in the city question the political will of Hong Kong’s government officials to take bold, aggressive action in a range of policy areas. This criticism often arises in relation to the city’s HK$1.17 trillion ($149 billion) fiscal reserve, which some contend has grown steadily for years while the city’s problems were allowed to fester...READ MORE

Monetary policy: Here's how low interest rates can go after 5 cuts in a row

International News
How much lower can India’s central bank drive interest rates after delivering five back-to-back cuts? By as much as 65 basis points, say some economists.
The Monetary Policy Committee can possibly cut rates by another 40-65 basis points, which will take the benchmark repurchase rate below the 4.75 per cent level seen during the global financial crisis, according to economists, including Anand Rathi Financial Services Ltd.s’ Sujan Hajra. So entrenched is India’s growth slowdown that it may require the rate to be cut to as low as 4.5 per cent for any meaningful impact.
“We now expect that rather than 5 per cent, the repo rate in this cycle would bottom out at 4.5 per cent,” said Hajra, chief economist at Anand Rathi and an ex-central banker himself.
The Reserve Bank of India Friday slashed the full-year growth forecast to 6.1 per cent — which would be a seven-year low — from 6.9 per cent previously. Governor Shaktikanta Das, echoing Mario Draghi, vowed to keep the policy stance dovish for “as long as it is necessary to revive growth.”Das was less forthcoming on how low rates can drop, after having cut rates by a cumulative 135 basis points so far this year.
“On a potential policy rate lower bound we have not said anything,” he told reporters on Friday. “This is a kind of forward guidance that as long as growth momentum remains as it is and till growth is revived, the RBI will remain in an accommodative mode.”
Monetary policy: Here's how low interest rates can go after 5 cuts in a row

 Rahul Bajoria, senior India economist with Barclays Bank Plc, said Das’s guidance was “unambiguously dovish.” He expects the RBI to reduce the repo rate by another 25 basis points in December and by a further 15 basis points in February....Read More

Cyclical or structural? Decoding the nature of India's economic slowdown

Current Affairs

India’s real or inflation-adjusted gross domestic product (GDP) grew at 5 per cent in the June 2019 quarter of financial year 2019-20 (Q1FY20), the slowest growth in six years (25 quarters). In nominal terms, the growth stood at 7.99 per cent, lowest since December 2002.
With this, fears of the slowdown being a more structural one than a cyclical one have surfaced.
What is a cyclical slowdown?
A cyclical slowdown is a period of lean economic activity that occurs at regular intervals. Such slowdowns last over the short-to-medium term, and are based on the changes in the business cycle.
Generally, interim fiscal and monetary measures, temporary recapitalisation of credit markets, and need-based regulatory changes are required to revive the economy.
What is a structural slowdown?
A structural slowdown, on the other hand, is a more deep-rooted phenomenon that occurs due to a one-off shift from an existing paradigm. The changes, which last over a long-term, are driven by disruptive technologies, changing demographics, and/or change in consumer behaviour.
Dissecting India’s slowdown

 A slowdown in consumption demand, decline in manufacturing, inability of the Insolvency and Bankruptcy Code (IBC) to resolve cases in a time-bound manner, and rising global trade tension...Read More

How fixing female malnutrition can boost India's economy by $15-46 billion

Company News

Afsana Bano is 25, or so her Aadhaar national identity card said. With glee, she confessed that she was born in 2001. That made her 18, her 5’7 frail figure and delicate bones cradling a three-day-old baby that weighed 2.6 kg instead of the ideal 3.3 kg at this stage.
Bano’s levity and ignorance is representative of a cycle that keeps millions of Indian mothers and children, particularly in the most populous, poorest states, undernourished and incapable of learning and earning enough, thus holding back Indian economic progress, according to several research studies.Bano was 18 when she married and was underweight when she conceived, weighing 51 kg in the eighth month of pregnancy, gaining no more than 200 gm by the ninth.
Studying till class 12, Bano had an above-average education in rural Sitapur, where no more than 16.4% of women have had 10 years of education, compared to 32.9% in UP and 35.7% nationwide. But she never got the attention or counselling that the government health system was supposed to give her.
This is particularly important in Sitapur, where 36% of married women are adolescents, according to the 2015-16 National Family Health Survey (NFHS)--or NFHS-4--data, compared to an average of 21% in Uttar Pradesh (UP), India’s most populous and third-poorest state, by per capita income, and 27% nationwide.

 With 4.4 million people, Sitapur is classified as one of 25 “high priority districts” across Uttar Pradesh and 184 across India identified for special attention to pare child marriage and adolescent pregnancies.But the programme to address early marriage and teenage pregnancy, the Rashtriya Kishor Swasthya Karyakram (RKSK), a five-year-old national youth health programme, was given 1% of National Health Mission (NHM) funding in Sitapur, falling over a year from 3% in 2016-17.

Legislation to protect work authorisation of spouses of H-1B visa holders?

International News

Two influential lawmakers from California have introduced a legislation in the US House of Representatives to protect work authorisation of H-4 visa workers, a significant number of whom are Indian-American women.
The introduction of such a legislation comes days after the Department of Homeland Security (DHS) said that it would publish this month the long-promised regulation that would prevent the work authorisation to spouses on H-4 visas.
H-4 visas are issued to the spouses of H-1B visa holders, a significantly large number of whom are high-skilled professionals from India.
This week, the Trump administration announced plans to overturn the current DHS regulations that allow certain H-4 dependent spouses of H-1B visa holders who are stuck in green card backlogs to obtain employment authorisation, pursue their own professional goals and contribute to the US economy, said the lawmakers Anna G Eshoo and Zoe Lofgren.
Many H-4 visa holders are highly skilled professionals, and the DHS previously extended eligibility for employment authorisation to them recognising the economic burdens of families of many H-1B workers, particularly those who live in high cost areas like Silicon Valley on a single income as they await green card approvals, they said.
Since the rule was implemented, over 100,000 workers, mainly women, have received employment authorisation, and the H-4 Employment Protection Act prohibits the Trump administration from revoking this important rule.

 "H-4 visa holders deserve a chance to contribute to their local economies and provide for their families," Eshoo said."This is a matter of economic fairness and this legislation ensures it will continue," she added.

Bengaluru, Gurgaon among top 5 locations in APAC for tech firms: Report

Economy News

Bengaluru and Gurugram are among the top 5 preferred destinations in Asia Pacific to set up offices by technology companies because of better business conditions as well as availability of engineers and real estate for growth, according to a report.

The report by property consultant CBRE said technology companies continue to fuel office demand in the APAC region, despite absence of any principal city or cluster of the same status as Silicon Valley. Technology sector accounted for 23 per cent of total leasing activity in 2018.The study has ranked 15 cities of Asia Pacific in three categories based on their performance with regard to business conditions, innovation environment, and cost and availability.

Business conditions and innovation environment were each given a weightage of 40 per cent while cost, a relatively less important consideration for tech firms, was given 20 per cent weightage.
"Leading cities are Beijing, Bengaluru, Shanghai, Singapore and Gurugram. These cities score highly in terms of business conditions and innovation environment, as well as providing costs and availability that are supportive for business growth," the report said.

These cities are preferred destinations for a wide range of traditional and new tech companies seeking to establish a base of operations in Asia Pacific.


 Hyderabad figures in the list of five competent cities along with Hangzhou, Shenzhen, Tokyo and Seoul. These cities already host tech industry sub-sectors and demonstrate solid performance across most categories.Five 'supplement cities' are Hong Kong, Hsinchu, Sydney, Taipei and Auckland. These cities rate favourably on certain important aspects, but their most appropriate role is to serve as host for specific functions to complement larger hubs elsewhere in the region.

Factbox: How Uber and Lyft compare on key financial metrics

Company News
Uber Technologies Inc's initial public offering filing on Thursday contains data that will be key to selling itself to investors. The share sale follows a public offering by rival ride-sharing service Lyft Inc last month, whose shares have dropped to about $61 from an IPO price of $72.
Here are how the two companies compare on key metrics from Uber's filing

REVENUE

Uber had $11.3 billion in 2018 vs Lyft $2.2 billion.Uber's growth has been slowing relative to Lyft due to scandals and aggressive discounting by Lyft.Lyft's revenue more than doubled between 2017 and 2018 while Uber's grew around 41 percent.

MARKET SHARE

Uber has lost market share but remains the leader.Uber has 65 percent share in North America while Lyft says it has 39 percent in the United States.

ADJUSTED EBITDA

Both Uber and Lyft lose money though Uber has trimmed its losses in recent years.Uber's adjusted loss before interest, taxes, depreciation and amortisation was just over $1.8 billion in 2018 compared to $2.6 billion in 2017.Lyft lost $950 million in 2018 on the same basis.

MONTHLY ACTIVE USERS


 Uber has 91 million monthly active users compared to Lyft's 18.6 million.Uber's number includes customers of additional services beyond ride sharing.(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

India's weak electricity demand signals more slowdown pain ahead

Economy policy

India is witnessing a listless growth in electricity demand, possibly signaling more slowdown in Asia’s third-largest economy.

Electricity requirement from distribution utilities in February rose 1.3 percent from a year earlier and barely changed from January’s 1.1 percent, the weakest growth in two years, according to the power ministry’s Central Electricity Authority. Data for power generation, a proxy for demand, showed the weakness continued into March.

The trend points to a lack of appetite among factories and commercial firms -- who consume about half the country’s electricity -- ahead of government data on industrial production for February that’s due Friday. Uncertainty about the outcome of a national election beginning Thursday, weak domestic demand and a global slowdown have clouded India’s economy.

Economic growth slowed to 6.6 percent in the three months to December, the weakest pace in six quarters. The International Monetary Fund Tuesday cut the nation’s growth outlook for this year to 7.3 percent from 7.5 percent seen in January.

“The industry is not growing at a fast pace,” said Devendra Kumar Pant, chief economist, at India Ratings and Research, the local unit of Fitch Group. “All leading indicators suggest sluggishness in industrial activities will continue for some time.”

India’s core infrastructure sector, which constitutes 40 percent of total industrial production, grew 2.1 percent in February, marginally improving from January’s 19-month low of 1.8 percent when electricity generation and production of refinery products contracted.


 While factory output data for March, which is published with a one-month lag, is due in May, early indicators point to a steepening slowdown.

MRF can avail input tax credit only for invoice value: Tamil Nadu authority

Economy & Policy:

The Tamil Nadu Advance Ruling Authority (ARA) has said tyre major MRF may avail of input tax credit only to the extent of the value of the invoice in question, not on the discounts offered by vendors on interface software.

In the MRF case, the company intended subscribing to an online platform, C2FO, which would connect the buyer with vendors. Those of the latter that are registered with the e-platform place a discount offer, either annual percentage rate or a flat discount, to receive early payment. Invoices for discount are picked up by the software algorithm, based on which the discount offers can be varied.

MRF approached the ARA to check if it legally could avail of the input tax credit on the entire GST charged on the supply of invoice. Or if a proportionate reversal of the tax was required if the vendor gave a post-purchase discount, based on their early payment. The ARA said the company can avail of the input tax credit only to the extent of the invoice value raised by the suppliers, less the discounts as given by the C2FO software. If input tax credit was taken on the full amount, it should reverse the difference, the order from Manasa Gangotri Kata and S Vijayakumar said.

An expert says companies currently issue a commercial credit note (one without GST adjustment) for price adjustments in scenarios like a post-supply discount. In such a case, the companies would have discharged GST on the full value of supply. In the case of MRF, the ARA has said that even though GST is paid on the full value, proportionate credit (as much as pertains to the GST applicable on the value of the commercial credit note) would not be available to the recipient of supply.


 Abhishek Jain, tax partner at consultants EY India, said: “Most businesses had taken a contrary position on this and claimed input tax credit of the entire GST paid by the supplier...Read More

India defers higher duties on 29 key imports from US for 6th time

Economy & Policy:

India has decided to again defer the imposition of higher duties on 29 key imports from the US, for the unprecedented sixth time.

Originally set to go live from June 28, 2018, the tariffs have been repeatedly postponed by the government and are now expected to take hold from April 1 as opposed to March 2.
Despite them being notified by the Central Board of Indirect Taxes and Customs, the tariffs have been postponed repeatedly. In the meantime, four delegation level talks with Washington DC have been unable to solve the issue.

In response to an unilateral increase in steel and aluminium duties from India and other countries by the Trump administration, New Delhi had announced higher tax by up to 50 per cent on import of mostly agri goods like apples, almonds, walnuts and some industrial products.

The new taxes are proposed to rake in an estimated $240 million worth of additional taxes. Spread across sectors from which imports stood at $1.5 billion in 2017-18, New Delhi claimed the amount was equal to the estimated loss faced by India after the Trump Administration imposed a 25 percent extra levy on steel and 10 percent on aluminium products from many countries, including India in May, 2018.

Since then, other nations have been given an exemption by the US from the steel, aluminium duties. Now, we are working on a trade package to resolve this and other issues; a senior commerce ministry official said.


  This will include changes in import duties on the US information and communication technology products, and preferential tariffs for Indian exports, apart from data localisation norms, he added...Read More