Highlights of markets & economy today

Finance Minister Nirmala Sitharman through five tranches of announcements laid out the Centre's 20 lakh crore COVID-19 relief package in response to the biggest economic crisis India has faced in the last four decades. The announcements included a combination of immediate and long-term policy measures. However, these announcements failed to bring cheer to the markets.

Here’s a wrap of some of the most critical developments in the financial world today.

Big announcements

Break-up of 'Aatma Nirbhar' package shows its actual cost to govt is just 16%

Almost 84 per cent of the Rs 20 lakh crore economic Atma Nirbhar Bharat package, announced by Prime Minister Narendra Modi on May 12 and rolled out by the Finance Minister Nirmala Sitharaman over the next five days, has been in the form of loans and other liquidity measures — effectively implying no cost or cash outflow to the exchequer. Read more

Nirmala Sitharaman's COVID-19 package invites social criticism, but she may have more cards up her sleeves

The second week of May seems a game-changer for India. In 1998, the Pokhran II round of nuclear tests altered the country's place in geopolitics. Can Prime Minister Narendra Modi's Rs 20-lakh-crore package of measures announced 22 years later in the same week amid the COVID-19 pandemic crisis be a similar one for economics? That question is not easy to answer because it is full of ifs and buts that can be looked at through four prisms: fiscal prudence, social morality, political history and policy strategy. Each of these separately and collectively will shape outcomes in the coming months and years. Read more

India will experience its deepest recession ever with 45% fall in second quarter: Goldman Sachs

Goldman Sachs is anticipating that India will witness its worst recession yet as its data pointed out to the adverse economic impact of the lockdown imposed to check the spread of the coronavirus outbreak. Gross domestic product is expected to shrink by an annualized 45% in the second quarter from the past three months in contrast to Goldman’s previous forecast of a 20% decline, Bloomberg reported. Read more

Former finance minister Chidambaram slams Centre over Rs 20 lakh crore stimulus package

Former Union Finance Minister P Chidambaram has expressed "deep regret" that the Centre's fiscal stimulus package has "left high and dry" several sections, including those 13 crore families in the bottom half of the population. In a video conference, Chidambaram said, "We express our thorough disappointment and request the government to reconsider the stimulus package and announce a revised and comprehensive fiscal stimulus package of not less than Rs 10 lakh crore of real additional expenditure, equivalent to 10 per cent of GDP." Read more

General Atlantic picks a stake In Jio Platforms

Reliance Industries and Jio Platforms Limited have announced an investment of Rs 6,598.38 crore by General Atlantic, a leading global growth equity firm. This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Read more

After Zomato, Swiggy to lay off 1,100 employees as COVID-19 hits online food orders

Indian food delivery startup Swiggy said on Monday it would lay off 1,100 employees, or nearly 14% of its workforce, to cut costs, as a weeks-long nationwide lockdown to curb the coronavirus outbreak hits demand for online food ordering. Read more

Maha cyber cell registers 395 cases for spreading rumours

A total of 395 cases have been registered by Maharashtra Cyber till Sunday for spreading rumours, hate speeches and false news on social media amid the lockdown for the novel coronavirus outbreak, an official said. Read more

COVID-19 strikes Noida factories of Chinese smartphones: Oppo to open unit after all 3,000 employees screened; Vivo not impacted

COVID-19 has struck the Greater Noida factory of Chinese smartphone brand Oppo and has led to its shutdown. Another Chinese brand Vivo's construction employees too have been COVID-19 infected but the manufacturing plans have not been hampered, according to news reports. Read more

Flyers in limbo as airlines deny refund despite flight cancellation till May 31

Following the aviation regulator DGCA's tweet on May 17 concerning suspension of both domestic and international flights until the end of this month, passengers began to ask for refunds over the social media platform. And yet again they were told that no refunds shall be issued and instead the tickets shall be preserved in a credit shell. As per estimates, tickets for both domestic and international flights costing a total of Rs. 4000 crore are now in limbo. And out of this, tickets worth up to Rs. 100 crore were booked for flights between May 18 and May 31. Read more

Markets

Economic package melts markets as investors remain unimpressed, Sensex crashes

Benchmark indices ended the day sharply lower, on a day when most markets were up 1 to 3 per cent, as investors remained unimpressed with the economic package announced by the government. The belief is that most of the package was through a monetary stimulus, without any fresh money for more direct measures. Read more

4 reasons the Sensex has crashed 1,000 points

Global markets were trading much higher today, with the Asian markets all higher by 1 per cent. Dow Jones Futures were also pointing to a higher openings for the US markets. Here are 4 reasons, why the Sensex crashed 1,000 points, despite strong global cues. The Nifty was now trading below the 9,000 points mark. Read more

Gold jumps to highest since October 2012 on dismal US data; Palladium surges

Gold rose over 1% on Monday to its highest in more than seven years as dismal US data underscored how badly the COVID-19 pandemic has damaged the world's top economy, while palladium soared over 9% on better-than-expected demand outlook. Spot gold was up 1.1% at $1,760.85 per ounce by 0402 GMT, after rising to its highest since Oct. 12, 2012 at $1,763.51. US gold futures gained 0.8% to $1,770.50. Read more

What is ailing banking stocks after Rs 20 lakh crore stimulus announcements?

On Monday, banking socks took a beating as a reaction to the announcements made by Finance Minister Nirmala Sitharaman as part of the Rs 20 Lakh Crore COVID-19 related economic stimulus package.

Shares of major banks, that is SBI, ICICI Bank, HDFC Bank and IndusInd Bank closed 4 to 10 percent lower they reacted to the details of the stimulus announced in the last 5 days that have raised concerns of a possible increase in bad loans and provisions. Read more

Personal Finance

Want to take a home loan? Check which govt bank is offering the lowest interest rate

Home loan helps you in fulfilling your desire to own your house. Interest rate plays an important role in any loan. Therefore, whenever you take a loan, make sure to compare the interest rates of all the banks to bag the best deal. With prominent banks slashing their lending rates, check which public sector bank is offering the lowest interest rate. Read more

PM e-Vidya: Govt will launch dedicated TV channels for school kids

For students across the country to study online, the government is considering a proposal to have one special TV channel per class from class 1 to class 12. These special TV channels will be launched under the government's comprehensive initiative called Pradhan Mantri e-VIDYA or PM e-Vidya. Read more

Auto

2020 Hyundai Creta SUV garners 21,000 bookings since launch in March

Nearly two months after its launch, Hyundai has announced that the number of bookings for the second-gen Creta has crossed 21,000 in India. Since its launch, Hyundai has managed to deliver close to 1,000 vehicles while 6,000 more are stocked at dealerships in anticipation of the lockdown being uplifted. At its launch, the company had notified a waiting period of up to eight weeks which could be extended since manufacturing plants only recently opened in Chennai. Read more

Tech

Huami develops self-disinfecting mask to fight coronavirus and pollution

Huami, the brand known for its smart wearables, has joined in the race to fight the COVID-19 spread by developing a technologically-advanced mask. We have seen Xiaomi and some other brands introducing anti-pollution masks for a healthier lifestyle. Now, Huami is getting ready to up the game by bringing a protective mask designed to save the public against the deadly coronavirus. Read more


Apple details safety plan for store reopening: local data monitoring, daily deep cleaning & more

Apple has detailed its plans to safely reopen its retail stores worldwide, depending on the COVID-19 situation region by region. The company says it will carefully analyze data including local cases, near and long‑term trends, and guidance from national and local health officials, before taking a decision to reopen stores. This comes at a time when certain countries are easing lockdown restrictions depending on the curve of COVID cases in that area. Apple insists they will be cautious and not rush into a decision. The company now has more than 100 stores open worldwide. Read more