ADVERTISEMENT

Mumbai

Never thought SOTY sequel will happen so soon: Varun Dhawan

ADVERTISEMENT
Actor Varun Dhawan, who made his Hindi film debut with 'Student of The Year', said he never thought that the sequel of his romantic-comedy drama film will happen so soon.
 
Dhawan was interacting with the media to promote 'Kalank' along with his co-actors Alia Bhatt, Aditya Roy Kapur and Sonakshi Sinha in Mumbai on Wednesday.
 
Dhawan, Bhatt and Sidharth Malhotra made their Hindi film debut with 'Student of The Year', which released in 2012.
 
On Wednesday, the makers of 'Student of The Year 2' released posters of the film and the film is going to release in May.
 
Talking about the film, Varun said, "I think Tiger (Shroff), Ananya (Panday) and Tara (Sutaria) are looking superb in the film. Alia, Sid (Sidharth Malhotra) and I are equally proud and happy about it. We never thought that there will be a sequel to our film and that too really soon. People still call us 'student' and I don't think that tag will go away from us and we never know in 'Student of The Year 3' we might go back to school."
 
Talking about audience response to the trailer and songs of 'Kalank', Varun said, "This is one of the biggest films of our film career and only seven days are left for the release of the film, so we are very nervous and excited about it. We haven't seen the film yet."
 
"I feel audience have huge expectations from this film because it has a huge cast and it's huge in its scale. People have appreciated the trailer and songs of the film so, hopefully on April 17, they will like the film as well," he added.
 
Talking about his character in the film, Varun said, "Zafar is a very interesting character and it is one of the important characters of my film career. I think we all have done justice to our respective characters. I hope we have stayed true to the vision of Abhishek Verman, Karan Johar, Sajid Nadiadwala and Fox Star Studios."
 
'Student of the Year 2' is directed by Punit Malhotra and produced by Karan Johar, Hiroo Yash Johar and Apoorva Mehta under the banner of Dharma Productions. The film will be distributed by Fox Star Studios.
 
The film stars Tiger Shroff, debutants Tara Sutaria and Ananya Panday.
 
It is set to release on May 10, 2019.
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Pollard heroics help Mumbai beat Punjab in thriller

Keiron Pollard poured cold water on K L Rahul's maiden hundred with a whirlwind knock as Mumbai Indians scripted a last-ball three-wicket victory over Kings XI Punjab in a thrilling Indian Premier League (IPL) encounter here on Wednesday.
 
World Cup hopeful Rahul slammed an unbeaten 100 off 64 balls (6x4; 6x6) along with Chris Gayle's 63 off 36 balls to help Punjab post a challenging 197/4 after Pollard -- captaining the team in the absence of Rohit Sharma who is injured -- asked them to bat first.
 
Chasing 198 for a win, Mumbai were stuttering at 56/2 when Pollard (83 off 31 balls) pushed himself up at No 4 and took the game away from Punjab by hitting 10 sixes and three fours.
 
With 15 needed in the last over, Pollard was dismissed after smashing a six off a no ball and a four by Ankit Rajpoot.
 
But Alzarri Joseph (15 not out) kept his cool to take his team over the line with two needed from the last ball. Mumbai posted 198/7.
 
Mumbai were 56/2 when Pollard came to the crease. The veteran West Indies all-rounder then joined hands with Ishan Kishan (7) and Hardik Pandya (19) to stitch together 32 and 41 run stands for the fourth and fifth wickets, respectively, to then associate with Joseph for a seventh-wicket 54-run partnership.
 
Earlier, Rahul and with Gayle combined for a 116-run opening wicket partnership to give the visitors a blistering start.
 
While Rahul hit six fours and six sixes, Gayle bludgeoned seven sixes and three fours.
 
Gayle was dismissed in the 13th over after which Kings XI slowed down a bit. But Rahul ensured they got to an above par score by smashing Hardik Pandya 6-4-6-6 in the first four deliveries of the 19th over and then hitting Jasprit Bumrah for a four and six in the final over, as 38 runs came in the last two.
 
ADVERTISEMENT
Gayle, typically, took time to get going and it was only in the fifth over that the legendary West Indian changed gears by hitting Jason Behrendorff for three sixes and one four as the Aussie leaked 23 runs.
 
Kings XI were 50/0 at the end of Powerplay with both batsmen looking in ominous form.
 
Rahul hit Joseph for a delectable six and a four in the seventh over to continue his good form.
 
There was no stopping Gayle as he plundered a six and two fours off Hardik in the ninth over which cost the home team 17 runs as Kings XI raced to 93/0 at the half-way stage.
 
Gayle then brought up his 26th fifty in the IPL off 31 balls by smacking Krunal Pandya for a six in the 11th over. Punjab badly needed to break the partnership and Behrendorff did it, coming back to remove Gayle.
 
David Miller (7) did not last long, caught behind by Quinton de Kock off Hardik as the scoring slowed down.
 
Karun Nair followed suit managing only five runs before nicking one to de Kock behind the stumps off Pandya.
 
Sam Curran (8) tried to be cheeky but Bumrah got the better of him as the England all-rounder scooped one to de Kock. Just when it looked like Mumbai had successfully reined in, Rahul went berserk in the last two overs and together with Mandeep Singh (7 not out) associated a brisk 46-run stand for the fifth wicket.
 
Brief scores: Kings XI Punjab 197/4 (K.L. Rahul 100, Chris Gayle 63; Hardik Pandya 2/57) vs Mumbai Indians 198/7 (Keiron Pollard 83; Mohammed Shami 3/21)
 
IANS

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Rahul slams maiden ton as Punjab post 197/4 against Mumbai

World Cup hopeful K. L. Rahul slammed an unbeaten hundred, his first in the Indian Premier League (IPL), as Kings XI Punjab also rode on Chris Gayle's pyrotechnics to post 197/4 in 20 overs against Mumbai Indians here on Wednesday.
 
Rahul (100 not out off 64 balls) and Gayle (63 off 36 balls) joined hands for a 116-run opening wicket partnership to give the away side a blistering start. While Rahul hit six fours and six sixes, Gayle bludgeoned seven sixes and three fours.
 
Gayle was dismissed in the 13th over after which Kings XI slowed down a bit. But Rahul ensured they got to an above par score by smashing Hardik Pandya 6-4-6-6 in the first four deliveries of the 19th over and then hit Jasprit Bumrah for a four and six in the final over as 38 runs came in the last two overs.
 
Gayle, typically, took time to get going and it was only in the fifth over that the legendary West Indian changed gears by hitting Jason Behrendorff for three sixes and one four as the Aussie leaked 23 runs.
 
Kings XI were 50/0 at the end of Powerplay with both batsmen looking in ominous form.
 
Rahul hit last match's hero Alzarri Joseph for a delectable six and a four in the seventh over to continue his good form with the bat as Mumbai bowlers looked rudderless without captain Rohit Sharma who could not play due to an injury.
 
There was no stopping Gayle as he plundered a six and two fours off Pandya in the ninth over which cost the home team 17 runs as Kings XI raced to 93/0 at the halfway stage.
 
Gayle then brought up his 26th fifty in the IPL off 31 balls by smacking Krunal Pandya for a six in the 11th over. Punjab badly needed to break the partnership and Behrendorff did it, coming back to remove Gayle.
 
Trying to hit another six, Gayle holed out to Krunal Pandya at deep midwicket. David Miller (7) did not last long, caught behind by Quinton de Kock off Hardik Pandya as the scoring slowed down.
 
Karun Nair -- playing in place of injured Mayank Agarwal -- followed suit, managing only five runs before nicking one to de Kock behind the stumps off Hardik Pandya.
 
Sam Curran (8) tried to be cheeky but Bumrah got the better of him as the England all-rounder scooped one to de Kock. But just when it looked like Mumbai had successfully reined Punjab in, Rahul went berserk in the last two overs.
 
Brief scores: Kings XI Punjab 197/4 (K.L. Rahul 100, Chris Gayle 63; Hardik Pandya 2/57) vs Mumbai Indians
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

IPL: Rohit-less Mumbai ask Punjab to bat first

ADVERTISEMENT
In the absence of the injured Rohit Sharma, stand-in Mumbai Indians captain Keiron Pollard won the toss and decided to field first against Kings XI Punjab in their Indian Premier League (IPL) clash at the Wankhede stadium here on Wednesday.
 
Rohit suffered a right leg muscle spasm during training on Tuesday and chose to sit out of the season's first return fixture as a precautionary measure. Sharma has been replaced by Mumbai batsman Siddhesh Lad.
 
For Kings XI, Mayank Agarwal, who is still recovering from a finger injury, has been replaced by Karun Nair while Mujeeb Ur Rahman made way for Hardus Viljoen.
 
Teams
 
Mumbai Indians: Quinton de Kock, Suryakumar Yadav, Siddhesh Lad, Krunal Pandya, Ishan Kishan (wicketkeeper), Hardik Pandya, Kieron Pollard (captain), Rahul Chahar, Alzarri Joseph, Jason Behrendorff, Jasprit Bumrah
 
Kings XI Punjab: Chris Gayle, K.L. Rahul (wicketkeeper), Karun Nair, Mandeep Singh, Sarfaraz Khan, David Miller, Sam Curran, Hardus Viljoen, Ravichandran Ashwin (captain), Ankit Rajpoot, Mohammed Shami
 
IANS

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Sensex tanks 345 points on growth concerns

ADVERTISEMENT
Indian equities fell sharply on Wednesday after the International Monetary Fund (IMF) revised down the global growth forecast fuelling fears of a global slowdown. Investors were also cautious ahead of the polls which are set to begin from Thursday.
 
Caution was also seen among investors ahead of the start of the earnings season and for fresh trade tensions between the US and the EU. 
 
The BSE Sensex closed 345.20 points or 0.89 percent lower at 38,594.02. The broader Nifty slipped by 84 points or 0.72 percent to finish at 11,587.95.
 
"Market slid ahead of the start of the first phase of polling and renewed concern on global economic growth after IMF downgraded the growth forecast to 3.3 percent for 2019. Rupee remains strong and FIIs inflow was steady which will cap the downside," said Vinod Nair, Head of Research, Geojit Financial Services.
 
The election-led consolidation may be short-lived and the key trigger will be the earnings growth which is expected to start to revive from the fourth quarter onwards, he added.
 
According to Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking, the correction was "led by heavyweights like HDFC Twins, Reliance and marquee IT names".
 
Hindalco Industries was among the top losers on the NSE as the company temporarily shut the operations of its alumina plant in Jharkhand after a spillage incident injured four people.
 
Asian Paints, the largest paint maker lost nearly 2.5 percent after a downgrade by CLSA over rising crude oil prices. Bharti Airtel lost the most on Wednesday on the NSE.
 
Wipro gained more than 2 percent after market regulator SEBI approved a buyback worth Rs 12,000 crore, the company's largest till date. Tata Motors ended as the top gainer. 
 
IANS

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Indian equity markets open in the red on Wednesday

ADVERTISEMENT
The 30-scrip Sensitive Index (Sensex) on Wednesday opened on a negative note during the morning session of the trade.
 
The Sensex of the BSE opened at 38,898.60, touched a high of 38,902.44 points and a low of 38,851.77.
 
It was trading at 38,900.60 down by 38.62 points or 0.10 percent from its Tuesday's close at 38,939.22.
 
On the other hand, the broader 50-scrip Nifty at the National Stock Exchange (NSE) opened at 11,646.85 after closing at 11,671.95.
 
The Nifty was trading at 11,655.70 in the morning.
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

SBI reduces its MCLR and home loan rates from April 10

ADVERTISEMENT
State Bank of India (SBI), the country's largest lender, has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points (bps) across all tenors with the 1-year MCLR coming down from 8.55% per annum to 8.50% per annum.
 
As a result, Interest rates on all loans linked to MCLR stand reduced by 5 bps with effect from 10th April 2019, a press release from SBI said.
 
The release said SBI had made its housing loans more affordable by reducing the interest rate by 10 bps on loans up to Rs. 30 lakh. Now the applicable interest rate for such housing loans below Rs. 30 lakh will range from 8.60% p.a. to 8.90% p.a. (from existing rates of 8.70% p.a. to 9.00% p.a.), it said.
 
With SBI having linked its CC/OD rates above Rs. 1 lakh to the repo rate for better transmission of RBI’s policy rates, the benefit of the reduction in repo rate by 25 bps by RBI with effect from 4th April, 2019 will get passed on in its entirety to such CC/OD customers banking with SBI with effect from 1st May, 2019, it said.
 
Since SBI also has linked its savings bank (SB) rates to the repo rate, the saving bank rates shall also stand revised with effect from 1st May, 2019.
 
The new rates will be as follows:
 
For balances up to Rs. 1.00 lakh; 3.50 % p.a. (comprising almost 95% of SB account holders)
 
For balances above Rs. 1.00 lakh; 275 bps below repo rate i.e. effective rate being 3.25% p.a.
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Sensex ends 238 pts up despite high oil price

ADVERTISEMENT
The benchmark Sensex closed 238 points higher on Tuesday despite the crude oil prices hitting a five-month high. A sudden buying interest was seen during the later hours of the trade session after indices traded in a range-bound manner for the better part of the session.
 
Analysts said the gains came on the back of positive global cues and expectations of healthy corporate earnings from the IT and banking sectors.
 
The BSE Sensex closed 238.69 points or 0.62 percent higher at 38,939.22, while the Nifty settled higher by 67.45 points or 0.58 percent at 11,671.95.
 
The rupee, too, gained against the dollar despite surging crude oil prices, owing to Reserve Bank of India (RBI) intervention.
 
"RBI has sold dollar to keep the rupee in the 68 to 70 range. That apart, some corporate inflows can also be reasons for the rupee surging," Anindya Banerjee of Kotak Securities told IANS.
 
The benchmark Brent Crude prices climbed above the $71 per barrel mark on Tuesday oversupply concerns from war-torn Libya. The oil prices were already on the rise due to US sanctions on Iran and Venezuela which has curtailed global crude oil supply. 
 
Moreover, the OPEC-led production cut also pushed up the prices. 
 
IndiaBulls Housing Finance ended as the top loser on Nifty for the second consecutive day on Tuesday after announcing its merger on Friday with Lakshmi Vilas Bank. Asian Paints declined over 3 percent on rising crude oil prices. 
 
"Market gained after a range-bound movement in expectation of a turnaround in earnings growth led by Q4 FY19 results starting this week while positive global peers aided the market. Banks outperformed as outlook improved led by a reduction in stressed assets, repo rate and pick up in credit growth," said Vinod Nair, Head of Research, Geojit Financial Services.
 
"But valuation is on a premium level while the start of the first phase of polling may bring volatility in the market," he said.
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Sensex, Nifty flat on oil export concerns from Libya

ADVERTISEMENT
Indian equity and currency markets opened on a flat note on Tuesday as investors feared a further rise in crude oil prices owing to concerns over exports from war-torn Libya.
 
The oil prices were already on the rise over US sanctions in Iran and Venezuela which has curtailed global crude oil supply. Moreover, the OPEC-led production cut also pushed up the prices. 
 
The benchmark, Brent Crude surged over the $71 a barrel mark. 
 
Except for export-oriented IT stocks, all other sectoral stocks on the NSE witnessed heavy selling pressure. 
 
The BSE Sensex opened at 38,730.93, slightly higher from its previous close of 38,700.53. At 9.39 a.m., the Sensex was down 28.32 points or 0.07 percent at 38,672.21. 
 
The broader Nifty traded 17.85 points lower at 0.15 percent. It opened marginally higher at 11,612.05 from its previous close of 11,604.50. 
 
On Monday, Foreign Institutional Investors (FIIs) bought stocks worth Rs 329.60 crore while the Domestic Institutional Investors (DIIs) sold stocks worth Rs 623.81 crore. 
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Six entities for Jet EoI; stake sale up to 75%

Global private equity firm TPG Capital and international airlines such as Lufthansa are among six entities who are believed to have shown interest in the "expression of interest" stake sale process of the debt-ridden Jet Airways, sources said.
 
The development comes as lenders of the debt-ridden airline invited EoI for stake sale in the airline to recover their dues worth Rs 8,000 crore.
 
Sources said that TPG Capital, private equity firm KKR, Blackstone, Lufthansa, Singapore Airlines and Delta-Air France-KLM are among the companies approached by the lenders. 
 
When contacted, a Tata Group spokesperson said: "We don't comment on market speculation." 
 
As per the document issued by the State Bank of India (SBI), the lead lender in the consortium, it offered stake from 31.2 to 75 percent of the company on a fully diluted basis. 
 
However, it was not known whether ex-Chairman Naresh Goyal or major equity owner Etihad Airways would be selling their stake on a pro-rata basis.
 
The airline owes Rs 8,000 crore to lenders, led by the SBI. On March 25, Goyal had stepped down from the board of the airline and ceded majority control to the SBI-led consortium. 
 
The consortium of banks then appointed SBI Caps to take out the EoI and conduct the process of their stake sale in the airline. 
 
"The lenders, pursuant to the guidelines issued by the Reserve Bank of India, are in the process of formulation of a resolution plan for resolving stress in the company, inter alia, involving change in control and management of the company," the EOI document said. 
 
The purpose of the EoI is to provide information about the company to enable interested parties to make assessment about the proposal prior to the submission of their bids. 
 
The time period for submission of EoI is till 6 p.m. on April 10. 
 
Monday's development comes after lenders last week said that they intend to pursue the bank-led resolution plan for the airline under the present legal and regulatory framework. This came after the Supreme Court decided to annul a February 12, 2018 Reserve Bank of India (RBI) circular on bad debts.
 
The judgement was seen as a major setback for the resolution process. In a statement, the consortium said: "The lenders intend to pursue the bank-led resolution plan for sale of stake in the company in a time-bound manner under the present legal and regulatory framework and intend to invite expressions of interest." 
 
As per the lenders' statement, all efforts will be made for the stake sale and other options may be considered by them should these efforts not result in an acceptable outcome. 
 
The lenders did not divulge any information about the present funding needs of the airline. Jet Airway's former Chairman Goyal had earlier said he has cooperated fully and facilitated the bank-led resolution programme for the company.
 
On March 25, Goyal had stepped down from the board of the airline and ceded majority control to the SBI-led consortium.
 
Under the debt resolution plan, the lenders would inject up to Rs 1,500 crore working capital into the airline and convert their debt into equity, to revive the airline and then sell their stake in it.
 
The airline is hardpressed for funds and without further funding the airline's fleet size is expected to shrink further. It has alredy shrunk to 26. 
 
Jet has been struggling with cash flows for the past six months because of rising fuel costs and intense competition. It has even delayed payment to lessors, airport operators and oil marketing companies besides a part of its workforce to keep the company running. 
 
Recently, the airline informed employees that salaries for March will be delayed. Salaries are pending since January. On Monday, the company's scrip gained 3.14 per cent or Rs 8.05 to Rs 264.10.
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Surging oil prices, falling rupee dents markets

ADVERTISEMENT
Weak global cues over the delay in Brexit deal, uncertainty around the US-China trade tension along with rising crude oil prices dented investor sentiment on Monday. Sensex and Nify closed nearly 0.5 per cent lower.
 
Among other factors, said analysts, was the weakness in rupee which helped the export-oriented IT sector stocks close in the green. All other Nifty sectoral indices ended in the red.
 
The Sensex closed 161.70 points or 0.42 per cent lower at 38,700.53, while the Nifty ended 61.45 points or 0.53 per cent at 11,604.50 points.
 
"Domestic markets started this week on a weak note given the global cues on account of drag in the US-China trade deal and Brexit delays. Investors have turned cautious given the rise in oil prices and a sharp rally in the last couple of months leading to premium valuation of key indices," said Vinod Nair, Head of Research, Geojit Financial Services.
 
"Additionally, general elections and start of Q4 earnings season are also adding to investor turning the cautious. We may see some profit booking in the near-term given the sharp run-up in markets."
 
Besides the polling for General Elections, Q4 earnings result season will kick off from next week. IT major Tata Consultancy Services (TCS) is expected to come out with its Q4 result on April 12.
 
Apart from the Q4 results, investors will look out for the upcoming macro-economic data points such as the IIP (Index of Industrial Production) and CPI (Consumer Price Index).
 
On Monday, the rupee closed at 69.68-69, down 45 paise from the previous close of 69.22-23 per dollar.
 
In terms of investment, foreign institutional investors (FIIs) bought stocks worth Rs 329.60 crore while domestic institutional investors (DIIs) sold stocks to the tune of Rs 623.81 crore.
 
The top gainers on the BSE were Infosys, Mahindra & Mahindra, ONGC and NTPC, which advanced up to 2 per cent.
 
Yes Bank, Bajaj Finance, Vedanta, Tata Motors and Tata Motors (DVR) slid in the range of 2-3 per cent.
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Sensex ends lower on surging crude prices

ADVERTISEMENT
Weak global cues over the delay in Brexit deal, uncertainty around the US-China trade tension along with rising crude oil prices dented investor sentiment on Monday. Sensex and Nify closed nearly 0.5 per cent lower.
 
Among other factors, said analysts, was the weakness in rupee which helped the export-oriented IT sector stocks close in the green. All other Nifty sectoral indices ended in the red.
 
The Sensex closed 161.70 points or 0.42 per cent lower at 38,700.53, while the Nifty ended 61.45 points or 0.53 per cent at 11,604.50 points.
 
"Domestic markets started this week on a weak note given the global cues on account of drag in the US-China trade deal and Brexit delays. Investors have turned cautious given the rise in oil prices and a sharp rally in the last couple of months leading to premium valuation of key indices," said Vinod Nair, Head of Research, Geojit Financial Services.
 
"Additionally, general elections and start of Q4 earnings season are also adding to investor turning the cautious. We may see some profit booking in the near-term given the sharp run-up in markets."
 
The top gainers on the BSE were Infosys, Mahindra & Mahindra, ONGC and NTPC, which advanced up to 2 per cent.
 
Yes Bank, Bajaj Finance, Vedanta, Tata Motors and Tata Motors (DVR) slid in the range of 2-3 per cent.
 
IANS

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Sensex opens higher, energy stocks down

ADVERTISEMENT
Key equity indices opened higher on Monday. Sensex traded just shy of the 39,000 mark after opening at over 100 points higher.
 
Except for oil and gas, energy index, all the sectoral stocks on the BSE traded in the green.
 
The Sensex of the BSE opened at 38,993.60 from its previous close at 38,862.23 on Friday.
 
At 9.27 a.m., the Sensex traded at 38,959.11 up 96.88 points or 0.25 per cent.
 
The Nifty of the National Stock Exchange (NSE) opened at 11,704.35 after closing at 11,665.95 on Friday.
 
The Nifty traded at 11,686.80 during the morning trade session, up 20.85 points and 0.18 per cent.
 
Foreign Institutional Investors bought stocks worth Rs 797.90 crore on Friday while Domestic Institutional Investors sold scrips worth Rs 325.58 crore.
 
IANS

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Alzarri Joseph's 6/12 helps Mumbai to 40-run win over Hyderabad

Despite a batting failure, Alzarri Joseph's sensational six-wicket haul guided Mumbai Indians to a massive 40-run victory over Sunrisers Hyderabad in their Indian Premier League (IPL) contest here on Saturday.
 
Joseph (6/12), the 22-year-old Caribbean, not only helped Mumbai win, but he also rewrote the record books after registering the best ever bowling figures in the league's history. 
 
Defending a paltry total of 137, debutant Joseph was the key architect behind Mumbai's exceptional win as the pacer shattered the Hyderabad batting line-up which fell like a pack of cards.
 
The other Mumbai bowlers -- Rahul Chahar (2/21), Jasprit Bumrah (1/16) and Jason Behrendorff (1/28) -- also impressed with some economical spells. 
 
Chasing the target, the hosts got off to a decent start with their scorecard reading 27 for no loss in the initial three overs. However, Rahul Chahar started the proceedings for Mumbai after bagging the wicket of Jonny Bairstow (16 off 10) before David Warner (15 off 13) became a victim of Joseph with just just 33 runs on board.
 
Joseph then packed back Vijay Shankar (5 off 10) while Behrendorff accounted for the wicket of Manish Pandey (16 off 21), putting the hosts in deep trouble.
 
Chahar made the situation worse for Hyderabad when he dismissed incoming batsman Yusuf Pathan, who departed without scoring, leaving the hosts reeling at 62/5. 
 
With half of the Hyderabad side back in the dug out, Deepak Hooda tried to put things back in control with his 24-ball 20. However, he couldn't succeed as Joseph sent him back before picking up the wicket of Rashid Khan, who failed to open his account.
 
With Hyderabad's score reading 88/7, Joseph utilised the opportunity to rock the hosts' lower order as he dismissed Mohammad Nabi (11), Bhuvneshwar Kumar (2) and Siddarth Kaul (0) in quick succession to help Mumbai register an emphatic victory.
 
ADVERTISEMENT
Earlier, some disciplined bowling by Hyderabad helped restrict Mumbai to a modest 136/7.
 
Mumbai kept on losing wickets at regular intervals as the Hyderabad bowlers not only kept on jolting the visitors, but also maintained a decent economy. 
 
It was Kieron Pollard (46* off 26, 4x2, 6x4) who once again showed some resistance down the order to propel his team past the 100-run mark.
 
Put in to bat first, Mumbai started slowly before Mohammad Nabi drew first blood by dismissing visiting skipper Rohit Sharma for 11. Sandeep Sharma soon delivered another blow by trapping Suryakumar Yadav plumb in front of the wicket.
 
With Mumbai reeling at 28/2, Quinton de Kock (19 off 18) and Ishan Kishan (17 off 21) tried to stabilise the innings. However, the two couldn't taste much success as de Kock was sent back by Kaul in the ninth over with the scoreboard reading 43/3.
 
Ishan and Krunal Pandya then added 20 runs in the next 2.2 overs before Kaul cut short Krunal's stay. The Mumbai all-rounder top-edged a short delivery that landed safely in the hands of wicketkeeper Jonny Bairstow.
 
Mumbai suffered another blow soon when Ishan was caught short of the crease while trying to steal a quick single.
 
The hosts kept on picking up wickets in quick succession as Hardik Pandya (14) and Chahar (10), too, departed soon with just 97 runs on board. However, Pollard's heroics in the last few overs helped the three-time champions reach a modest total.
 
For Hyderabad, Kaul scalped two wickets while Bhuvneshwar, Sandeep Sharma, Rashid and Mohammad Nabi picked up one wicket each. 
 
Brief scores: 
 
Mumbai Indians: 136/7 in 20 overs (Kieron Pollard 46 not out, Quinton de Kock 19; Siddharth Kaul 2/34) beat Sunrisers Hyderabad 96 all out in 17.4 overs (Deepak Hooda 20, Jonny Bairstow 16; Alzarri Joseph 6/12) by 40 runs.
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Disciplined Hyderabad restrict Mumbai to 136/7

ADVERTISEMENT
A disciplined bowling effort by Sunrisers Hyderabad helped restrict Mumbai Indians to a modest 136/7 in their Indian Premier League (IPL) clash at the Rajiv Gandhi International Stadium here on Saturday.
 
Mumbai kept on losing wickets at regular intervals as the Hyderabad bowlers not only kept on jolting the visitors, but also maintained a decent economy. 
 
It was Kieron Pollard (46* off 26, 4x2, 6x4) who once again showed some resistance down the order to propel his team past the 100-run mark.
 
Put in to bat first, Mumbai started slowly before Mohammad Nabi drew first blood by dismissing visiting skipper Rohit Sharma for 11. Sandeep Sharma soon delivered another blow by trapping Suryakumar Yadav plumb in front of the wicket.
 
With Mumbai reeling at 28/2, Quinton de Kock (19 off 18) and Ishan Kishan (17 off 21) tried to stabilise the innings. However, the two couldn't taste much success as de Kock was sent back by Siddarth Kaul in the ninth over with the scoreboard reading 43/3.
 
Ishan and Krunal Pandya then added 20 runs in the next 2.2 overs before Kaul cut short Krunal's stay. The Mumbai all-rounder top-edged a short delivery that landed safely in the hands of wicketkeeper Jonny Bairstow.
 
Mumbai suffered another blow soon when Ishan was caught short of the crease while trying to steal a quick single.
 
The hosts kept on picking wickets in quick succession as Hardik Pandya (14) and Rahul Chahar (10) too departed soon with just 97 runs on board. However, Pollard's heroics in the last few overs helped the three-time champions reach a modest total.
 
For Hyderabad, Kaul scalped two wickets while Bhuvneshwar Kumar, Sandeep Sharma, Rashid Khan and Mohammad Nabi picked up one wicket each. 
 
Brief scores: 
 
Mumbai Indians: 136/7 in 20 overs (Kieron Pollard 46 not out, Quinton de Kock 19; Siddharth Kaul 2/34) vs Sunrisers Hyderabad
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Hyderabad opt to field against Mumbai

ADVERTISEMENT
Sunrisers Hyderabad skipper Bhuvneshwar Kumar won the toss and opted to bowl against Mumbai Indians in the 19th Indian Premier League (IPL) contest at the Rajiv Gandhi International Stadium here on Saturday.
 
While the hosts remain unchanged, Mumbai made two changes in their side as Ishan Kishan and Alzarri Joseph replaced Yuvraj Singh and Lasith Malinga.
 
Mumbai is placed sixth in the points table with two wins from four games. On the other hand, Hyderabad is at the second spot after three wins from four games.
 
Playing XI
 
Mumbai Indians: Quinton de Kock (wicket-keeper), Rohit Sharma (Captain), Suryakumar Yadav, Ishan Kishan, Hardik Pandya, Kieron Pollard, Krunal Pandya, Jason Behrendorff, Rahul Chahar, Alzarri Joseph, Jasprit Bumrah
 
Sunrisers Hyderabad: David Warner, Jonny Bairstow (wicket-keeper), Vijay Shankar, Manish Pandey, Deepak Hooda, Yusuf Pathan, Mohammad Nabi, Rashid Khan, Bhuvneshwar Kumar (Captain), Sandeep Sharma, Siddarth Kaul
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

India’s forex reserves soar by $ 5.237 billion to $ 411.905 billion

ADVERTISEMENT
Maintaining an uptrend for the seventh consecutive week, India’s foreign exchange reserves soared by a whopping $ 5.237 billion to $ 411.905 billion during the week ended April 5, 2019, the Reserve Bank of India (RBI) said here today.
 
The country’s forex reserves had gone up by $ 1.029 billion to $ 406.667 billion during the previous week.
 
In its weekly statistical supplement issued here today, the central bank said that foreign currency assets, which constitute a major chunk of the forex reserves, had gone up by $ 5.248 billion to $ 384.053 billion during the week.
 
Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the euro, pound and yen held in the reserves.
 
According to the bulletin, the country’s gold reserves remained unchanged at $ 23.408 billion, while its special drawing rights (SDRs) went down by $ 3.6 million to $ 1.4567 billion.
 
India’s reserve position in the International Monetary Fund (IMF) decreased by $ 7.4 million to $ 2.9864 billion, the bulletin added.
 
NNN

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Sensex, Nifty end higher on positive global cues

ADVERTISEMENT
Positive global cues owing to an easing of US-China trade tension pushed the Sensex and Nifty nearly 0.50 per cent higher on Friday led by gains in metals and IT index.
 
The BSE Sensex closed 177.51 points or 0.46 per cent higher at 38,862.23 points while the Nifty finished 67.95 points or 0.59 per cent up. 
 
"Nifty ended on a positive note with broad-based gains post two days of consolidation supported by favourable global cues on account of progress in US-China trade talks," said Vinod Nair, Head of Research, Geojit Financial Services .
 
"Mid and small caps were outperforming on account of relative value buying opportunities compared to large caps. Going ahead, investors' focus will be on Q4 results season starting next week."
 
The top losers on Sensex were State Bank of India, Power Grid, Hero MotoCorp, NTPC and Sun Pharma, declining up to 1.5 per cent.
 
The gainers were Tata Steel, Vedanta, Bajaj Finance, TCS and IndusInd Bank, surging 1 to 3.5 per cent.
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Equity indices open in green, Sensex up 200 points

ADVERTISEMENT
The key Indian equity indices opened on a positive note on Friday with the BSE Sensex rising over 200 points.
 
Healthy buying in all the sectoral indices led by realty, metal and oil and gas stocks supported the gains.
 
At 9.25 a.m., the Sensex traded at 38,900.36, higher by 215.64 points or 0.56 per cent from the previous close of 38,684.72 points.
 
It had opened at 38,839.52 and has so far touched an intra-day high of 38,901.57 and a low of 38,763.12 points.
 
The Nifty50 on the National Stock Exchange traded 11,658.45, higher by 60.45 points or 0.52 per cent from the previous close of 11,598 points.
 
IANS

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Videocon says its dues are Rs 39,000 crore, will repay through oil assets

ADVERTISEMENT
The beleaguered Videocon Group has admitted to stupendous outstandings to various lenders -- public and private -- amounting to over Rs 90,000 crore, making it perhaps the biggest corporate bankruptcy case in Indian banking history, official sources said on Thursday. The company, however, said the total dues amount to around Rs 39,000 crore, most of which it plans to repay through its huge "oil assets".
 
The two main group companies -- Videocon Industries Ltd (VIL) and Videocon Telecommunication Ltd. (VTL) -- owe Rs 59,451.87 crore and Rs 26,673.81 crore, respectively or a staggering Rs 86,125.68 crore to Indian banks, led by the State Bank of India (SBI).
 
Besides, 731 other Operational Creditors have made separate claims of Rs.31,117, 971,029 (VIL) and Rs.12,669,978,507 (VTL) for a total of over Rs 90,000 crore, the sources said.
 
Interestingly, even the Group promoters -- Venugopal Dhoot, Pradipkumar Dhoot and Rajkumar Dhoot -- have also filed claims of Rs 57,823.24 crores on the basis of personal guarantees provided by them for various facilities availed/guaranteed by VIL, which are under evaluation.
 
The VTL has also claimed Rs 17,86,94,69,659 from VIL on which there is no dispute and has been accepted in toto.
 
These and other data have been uploaded by the company's Resolution Professional (RP) on its website on Thursday for varying periods ranging from November 2018 to January 2019.
 
In a statement late Thursday evening, Group Chairman Venugopal Dhoot said that because of "Obligor and Co-Obligor structure, there is multiple counting of the same amount, and this structure was put in place at the time of restructuring the Videocon's debts".
 
"The actual dues are around Rs 39,000 crore. Videocon has oil assets of Rs 1 lakh crore to address this loan. Videocon is in NCLT and will be paying back majority of the loan through this oil reserve," Dhoot said.
 
Nevertheless, industry sources say this will be the biggest private sector bankruptcy in India after the Insolvency and Bankruptcy Code was introduced in 2016 for debt resolution - with wide-ranging ramifications for both the corporate world and the banking sector.
 
ADVERTISEMENT
Last year, the company was sent by the SBI to the National Company Law Tribunal after the Dhoot-family owned company defaulted on its loans.
 
As per the IBC regulations, the company's board of directors has been suspended and a RP appointed to manage its routine daily operations.
 
Revealing the figures of claims, VIL has named a whopping 54 Indian and foreign banks, financial institutions and even a cooperative bank to whom it owes a staggering Rs 59,451.87 crore.
 
Against this, claims of Rs.57,443.62 crore have been admitted while claims of Rs 1,149.57 crore have been rejected and those worth Rs.782.24 crore are being verified.
 
There's the ICICI Bank with a claim of Rs 3,318.08 crore on VIL and another Rs 1,439 crore on VTL.
 
It may be recalled that in January this year, the CBI had booked the then ICICI Bank Managing Director and CEO Chanda Kochhar, her husband Deepak Kochhar, VIL's Venugopal Dhoot and others, in an alleged quid pro quo loan scam, for criminal conspiracy and cheating.
 
Later that month, Chanda Kochhar quit but in a drastic action, she was sacked by the bank which also revoked all her entitlements and appointed a new COO, Sandeep Bakshi, in her place.
 
On January 31, the Justice B.N. Shrikrishna Committee appointed to probe the scam found her guilty of flouting the ICICI Bank's Code of Conduct as she failed to discharge her fiduciary functions to recuse herself to avoid any conflict of interest.
 
Among the claims of VIL's 54 lenders are 34 banks with SBI making the biggest claim of Rs.11,175.25 crore; from VTL's total 34 lenders, SBI has claimed the highest amount of Rs.4,605.15 crore.
 
From VIL, the second highest claimant is IDBI with Rs.9,561.67 crore crore. From VTL, the Central Bank of India is the second biggest claimant with Rs.3,073.16 crore.
 
From VIL, the Latur Urban Cooperative Bank (Maharashtra) is the lowest claimant with Rs.33 lakh and from VTL, the lowest claim has been submitted by Bank of Maharashtra for Rs. 21.13 crore.
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

RBI's lower growth forecast dents equity market

ADVERTISEMENT
Key Indian equity indices fell on Thursday as the Reserve Bank of India (RBI) lowered the country's growth projection for 2019-20 to 7.2 per cent.
 
Accordingly, the equity market had a flat start in line with sluggish global cues only to slide during the mid session. The S&P BSE Sensex fell 192.40 points or 0.49 per cent to 38,684.72 points, while the NSE Nifty50 declined 45.95 points or 0.39 per cent at 11,598 points.
 
On sector-specific basis, gains were made by BSE Healthcare, Auto and Realty indices, while top losers were BSE IT, Oil & Gas and Energy indices.
 
"Market consolidated as the outcome from RBI monetary policy was in line with expectation with a 25 bps cut in rate," said Vinod Nair, Head of Research, Geojit Financial Services.
 
"Investors turned cautious about the downward revision in the GDP growth to 7.2 per cent for FY20 while premium valuation and concerns over monsoon further impacted the sentiment. However, dovish view by global central banks and a likely better results in Q4FY19 can stabilise the market in the near future."
 
In its first monetary policy review of the current fiscal, the RBI noted signs of weakness in domestic investment activity as reflected in a slowdown in production and imports of capital goods.
 
Consequently, it lowered the country's growth projection for 2019-20 to 7.2 per cent.
 
"We witnessed some recovery post the RBI monetary policy. But it was clearly a short-lived bounce-back as the outcome of RBI cutting the repo rate by 25 bps was already discounted in the prices," said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking. 
 
"Today's decline was just a natural extension of yesterday's profit booking. So many stocks had entered an extremely overbought territory; so they needed to cool off a bit and this is what we have seen in the last couple of days." 
 
In terms of investment, the foreign institutional investors sold stocks worth Rs 226.19 crore, while the domestic institutional investors sold stocks worth Rs 1,206.16 crore.
 
According to Deepak Jasani of HDFC Securities, the weakness also came on the back of the RBI not changing its stance in the monetary policy to accommodative from neutral. 
 
The RBI's Monetary Policy Committee (MPC) has decided to maintain the "neutral" stance it had adopted at its previous policy review in February, when it had shifted away from its earlier stance of "calibrated tightening". A "neutral" stance allows the central bank to move either way on rates.
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Banks, others may lose over Rs 90,000 crore as Videocon sinks

ADVERTISEMENT
The beleaguered Videocon Group has admitted to stupendous outstandings to various lenders -- public and private -- amounting to over Rs 90,000 crore, making it perhaps the biggest corporate bankruptcy case in Indian banking history, official sources said on Thursday.
 
The two main group companies -- Videocon Industries Ltd (VIL) and Videocon Telecommunication Ltd. (VTL) -- owe Rs.59,451.87 crore and Rs.26,673.81 crore, respectively or a staggering Rs. 86,125.68 crore to Indian banks, led by the State Bank of India (SBI).
 
Besides, 731 other Operational Creditors have made separate claims of Rs. 31,117, 971,029 (VIL) and Rs. 12,669,978,507 (VTL) for a total of over Rs 90,000 crore, the sources said.
 
Interestingly, even the Group promoters -- Venugopal Dhoot, Pradipkumar Dhoot and Rajkumar Dhoot -- have also filed claims of Rs. 57,823.24 crores on the basis of personal guarantees provided by them for various facilities availed/guaranteed by VIL, which are under evaluation.
 
The VTL has also claimed Rs. 17,86,94,69,659 from VIL on which there is no dispute and has been accepted in toto.
 
These and other data has been uploaded by the company's Resolution Professional (RP) on its website today for varing periods ranging from November 2018 to January 2019.
 
Industry sources say this will be the biggest private sector bankruptcy in India after the Insolvency and Bankruptcy Code was introduced in 2016 for debt resolution -- with wide-ranging ramifications for both the corporate world and the banking sector.
 
Last year, the company was sent by the SBI to the National Company Law Tribunal after the Dhoot-family owned company defaulted on its loans.
 
As per the IBC regulations, the company's board of directors has been suspended and a RP appointed to manage its routine daily operations.
 
Revealing the figures of claims, VIL has named a whopping 54 Indian and foreign banks, financial institutions and even a cooperative bank to whom it owes a staggering Rs 59,451.87 crore.
 
Against this, claims of Rs.57,443.62 crore have been admitted while claims of Rs 1,149.57 crore have been rejected and those worth Rs.782.24 crore are being verified.
 
Among the banks is the ICICI Bank with a claim of Rs 3,318.08 crore on VIL and another Rs 1,439 crore on VTL.
 
ADVERTISEMENT
It may be recalled that in January this year, the CBI had booked the then ICICI Bank Managing Director and CEO Chanda Kochhar, her husband Deepak Kochhar, VIL's Venugopal Dhoot and others, in an alleged quid pro quo loan scam, for criminal conspiracy and cheating.
 
Later that month, Chanda Kochhar quit, but in a drastic action, she was sacked by the bank which also revoked all her entitlements and appointed a new COO, Sandeep Bakshi, in her place.
 
On January 31, the Justice B. N. Shrikrishna Committee appointed to probe the scam found her guilty of flouting the ICICI Bank's Code of Conduct as she failed to discharge her fiduciary functions to rescue herself to avoid any conflict of interest.
 
Among the claims of VIL's 54 lenders are 34 banks with SBI making the biggest claim of Rs. 11,175.25 crore; from VTL's total 34 lenders, SBI has claimed the highest amount of Rs. 4,605.15 crore.
 
From VIL, the second highest claimant is IDBI with Rs. 9,561.67 crore crore. From VTL, the Central Bank of India is the second biggest claimant with Rs 3,073.16 crore.
 
From VIL, the Latur Urban Cooperative Bank (Maharashtra) is the lowest claimant with Rs. 33 lakh and from VTL, the lowest claim has been submitted by Bank of Maharashtra for Rs, 21.13 crore.
 
IANS
 

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

Sensex slips 200 pts after RBI policy outcome

ADVERTISEMENT
The Sensex turned choppy after the RBI announced lowering of the key lending rate for commercial banks by 25 bps to 6 per cent, in its first monetary policy meet of the new fiscal year. Sensex slipped 200 points during the afternoon session of the trade on Thursday.
 
At 2.23 p.m., the Sensex 225.03 points or 0.58 per cent lower at 38,652.09 while the Nifty declined 72.50 points or 0.62 per cent at 11,571.45.
 
Jaikishan Parmar, Equity Research Analyst - BFSI, Angel Broking said the trigger for the rate cut was a weak growth impulse and restrained inflation. GDP growth is expected to be just about 7 per cent this fiscal and 7.2 per cent next fiscal. 
 
"With global growth likely to slow by 20 bps this year, lower rates could give the much needed boost. Also, the inflation rate at 2.6 per cent in February was way below the cut off rate of 4 per cent. Even considering the El Nino impact, the buffer of 1.4 per cent as sufficient to cover any upside risks to inflation."
 
Almost all the sectors traded lower on the BSE while the Nifty IT and metal stocks fell the most. 
 
The interest sensitive banking stocks were trading slightly lower while the PSU banking index managed to trade in the green.
 
IANS

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 

RBI's First Bi-monthly Monetary Policy Statement, 2019-20

RBI logo
 
Following is the text of the Reserve Bank of India's First Bi-monthly Monetary Policy Statement, 2019-20 issued here today, based on the resolution of its Monetary Policy Committee (MPC):
 
On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today decided to:
 
reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.0 per cent from 6.25 per cent with immediate effect.
 
Consequently, the reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.25 per cent.
 
The MPC also decided to maintain the neutral monetary policy stance.
 
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.
 
The main considerations underlying the decision are set out in the statement below.
 
Assessment
 
Global Economy
 
2. Since the last MPC meeting in February 2019, global economic activity has been losing pace. In the US, the subdued performance in the final quarter of 2018 appears to have continued into Q1:2019 as reflected in declining factory activity. The Euro area slowed down in Q4:2018 on soft domestic demand and contracting manufacturing activity. Of its constituents, the Italian economy contracted for two consecutive quarters in Q3 and Q4. In the UK, growth slowed down on Brexit uncertainty, with industrial production contracting during September-January. The Japanese economy rebounded in Q4 on increased domestic consumption expenditure and recovering investment spending. However, the latest data on manufacturing activity and business confidence suggest that growth lost momentum in Q1:2019. The monetary policy stances of the US Fed and central banks in other major advanced economies (AEs) have turned dovish.
 
3. Economic activity also slowed down in some major emerging market economies (EMEs). The Chinese economy decelerated in Q4:2018 on subdued domestic and global demand impacting industrial activity. Much of this weakness seems to have continued into 2019 as reflected in low factory output in Q1, though the purchasing managers’ index (PMI) moved into expansion zone in March after three months of contraction. In Q1, the Russian economy continued to be impacted by both domestic and external headwinds. The Brazilian economy ended 2018 on a weak note; going into 2019, available economic indicators for Q1 suggest that economic activity remained restrained by both weak domestic and external demand. The South African economy slowed down in the final quarter of 2018. Subdued industrial activity and worsening external demand point to a further loss in momentum in Q1.
 
4. Crude oil prices have risen on production cuts by OPEC and Russia as well as disruption in supplies due to US sanctions on exports from Venezuela. Gold prices weakened on expectations of positive outcomes of the China-US trade deal. Inflation continued to remain low in major AEs and many key EMEs due to slowing global growth and stable or falling commodity prices.
 
5. Financial markets continued to be driven by monetary policy stances of key central banks and movements in crude oil prices. In the US, the equity market witnessed some selling pressure in the last week of March on weak economic data. Equity markets in EMEs gained, benefitting from country-specific factors and easing of global financing conditions. Bond yields in the US softened, slipped into negative territory in Germany and dipped further into negative territory in Japan as central banks signalled softer stances. Bond yields in most EMEs have been falling in tandem with those in AEs and on the improving inflation outlook. In currency markets, the US dollar has traded with an appreciating bias in recent weeks. EME currencies have traded with a depreciating bias on country-specific factors and on fears of a weakening economic outlook in China.
 
Domestic Economy
 
6. Turning to the domestic economy, the second advance estimates for 2018-19 released by the Central Statistics Office (CSO) in February 2019 revised India’s real gross domestic product (GDP) growth downwards to 7.0 per cent from 7.2 per cent in the first advance estimates. Domestic economic activity decelerated for the third consecutive quarter in Q3:2018-19 due to a slowdown in consumption, both public and private. However, gross fixed capital formation (GFCF) growth remained in double digits for the fifth consecutive quarter in Q3, with the GFCF to GDP ratio rising to 33.1 per cent in Q3:2018-19 against 31.8 per cent in Q3:2017-18, supported primarily by the government’s thrust on the road sector and affordable housing. The drag on aggregate demand from net exports also moderated in Q3 due to a marginal acceleration in exports and a sharp deceleration in imports led by a decline in crude oil prices.
 
7. On the supply side, the second advance estimates of the CSO placed the growth of real gross value added (GVA) lower at 6.8 per cent in 2018-19 as compared with 6.9 per cent in 2017-18. GVA growth slowed down to 6.3 per cent in Q3 due to a deceleration in agriculture output from the record level achieved in the previous year. Industrial GVA growth remained unchanged in Q3, with manufacturing GVA growth slowing somewhat. Services GVA growth also remained unchanged in Q3; while growth in construction activity accelerated, there was some loss of momentum in public administration, defence and other services.
 
8. Beyond Q3, the second advance estimates of foodgrains production for 2018-19 at 281.4 million tonnes were 1.2 per cent lower than the fourth advance estimates of 2017-18, but 1.4 per cent higher than the second advance estimates of 2017-18. According to the National Oceanic and Atmospheric Administration (NOAA) of the US, El Niño conditions strengthened during February 2019, which may affect the prospects of a normal south west monsoon.
 
9. Of the high frequency indicators of industry, the manufacturing component of the index of industrial production (IIP) growth slowed down to 1.3 per cent in January 2019 due to automobiles, pharmaceuticals, and machinery and equipment. The growth of eight core industries remained sluggish in February. Credit flows to micro and small as well as medium industries remained tepid, though they improved for large industries. Capacity utilisation (CU) in the manufacturing sector, however, as measured by the Reserve Bank’s order books, inventory and capacity utilisation survey (OBICUS), improved to 75.9 per cent in Q3 from 74.8 per cent in Q2 exceeding its long-term average; the seasonally adjusted CU rose to 76.1 per cent from 75.4 per cent. The business assessment index of the industrial outlook survey (IOS) points to an improvement in overall sentiments in Q4. The manufacturing purchasing managers’ index (PMI) remained in expansion zone for 20th month in March. The key indicators of investment activity contracted, viz., production of capital goods in January and imports of capital goods in February.
 
10. High frequency indicators of the services sector suggest significant moderation in activity. Sales of commercial vehicles contracted during February. Other indicators of the transportation sector, viz., port freight traffic and international air freight traffic, also contracted. However, indicators of the construction sector, viz., consumption of steel and production of cement, continued to show healthy growth. The hotels sub-segment showed some improvement in foreign tourist arrivals in January and international air passenger traffic in February. The services PMI continued to be in expansion zone for the tenth consecutive month in March 2019.
 
ADVERTISEMENT
11. Retail inflation, measured by y-o-y change in the CPI, rose to 2.6 per cent in February after four months of continuous decline. The uptick in inflation was driven by an increase in prices of items excluding food and fuel and weaker momentum of deflation in the food group. However, inflation in the fuel group collapsed to its lowest print in the new all India CPI series.
 
12. Within the food group, deflation in four sub-groups – vegetables, sugar, pulses and fruits – continued in February. Egg prices moved into inflation after remaining in deflation in previous three months, while inflation ticked up in all other food sub-groups.
 
13. Inflation in the fuel and light sub-group collapsed from 4.5 per cent in December to 1.2 per cent in February. Prices of liquefied petroleum gas (LPG) declined sharply, pulled down by the lagged impact of the softening of international energy prices. The prices of firewood, with the second largest weight in the fuel group, also declined. Electricity slipped into deflation in January and February. Inflation in kerosene remained elevated, however, reflecting the impact of the calibrated increase in its administered price.
 
14. CPI inflation excluding food and fuel declined to 5.2 per cent in January, but rose to 5.4 per cent in February, driven by a broad-based pick-up in inflation in the personal care and effects, and recreation and amusement sub-groups. However, inflation in the clothing and footwear, and transport and communication sub-groups fell, the latter reflecting the reduction in petrol and diesel prices. Inflation in the health and education sub-groups remained elevated, even though it moderated markedly during January-February vis-à-vis December.
 
15. Inflation expectations, measured by the Reserve Bank’s survey of households, declined in the February round over the previous round by 40 basis points each for the three months ahead and for the one year ahead horizons. Firms participating in the Reserve Bank’s industrial outlook survey of manufacturing companies reported reduction in input price pressures, but they expected an increase in staff expenses in Q1:2019-20. Farm and industrial input costs increased at a slow pace in January-February 2019. Nominal growth in rural wages and staff costs in the organised manufacturing and services sectors remained muted in Q3:2018-19.
 
16. From a daily net average surplus of Rs. 27,928 crore (Rs. 279 billion) during February 1-6, 2019, systemic liquidity moved into deficit during February 7 - March 31, reflecting the build-up of government cash balances. Currency in circulation expanded sharply in February-March. The liquidity needs of the system were met through injection of durable liquidity amounting to Rs. 37,500 crore (Rs. 375 billion) in February and Rs. 25,000 crore (Rs. 250 billion) in March through open market purchase operations (OMOs). Consequently, total durable liquidity injected by the Reserve Bank through OMOs aggregated Rs. 2,98,500 crore (Rs. 2,985 billion) for 2018-19. Liquidity injected under the LAF, on an average daily net basis, was Rs. 95,003 crore (Rs. 950 billion) during February (February 7-28, 2019) and Rs. 57,043 crore (Rs. 570 billion) in March. The weighted average call rate (WACR) remained broadly aligned with the policy repo rate in February and March.
 
17. Anticipating the seasonal tightening of liquidity at end-March, the Reserve Bank conducted four longer term (tenor ranging between 14-day and 56-day) variable rate repo auctions during the month in addition to the regular 14-day variable rate term repo auctions. Furthermore, the Reserve Bank conducted long-term foreign exchange buy/sell swaps of US$ 5 billion for a tenor of 3 years on March 26, 2019, thereby injecting durable liquidity of Rs. 34,561 crore (Rs.  346 billion) into the system.
 
18. Export growth remained weak in January and February 2019 mainly due to exports of petroleum products decelerating in response to a fall in international crude oil prices. Among non-oil exports, engineering goods, chemicals, leather and marine products recorded either sequentially lower or negative growth. As in the case of exports, lower international crude oil prices downsized the oil import bill. Non-oil non-gold imports declined sharply, dragged down by the subdued demand for pearls and precious stones, transport equipment, project goods and vegetable oils. The trade deficit narrowed in February 2019 – both sequentially and on a year-on-year basis – to its lowest level in 17 months. This, along with the increase in services exports and lower outgo of income payments, resulted in narrowing of the current account deficit sequentially. On the financing side, net FDI inflows were strong in April-January 2018-19. Foreign portfolio investors turned net buyers in the domestic capital market in Q4:2018-19. India’s foreign exchange reserves were at US$ 412.9 billion on March 31, 2019.
 
Outlook
 
19. In the sixth bi-monthly monetary policy resolution of February 2019, CPI inflation was projected at 2.8 per cent for Q4:2018-19, 3.2-3.4 per cent for H1:2019-20 and 3.9 per cent for Q3:2019-20, with risks broadly balanced around the central trajectory. Actual inflation outcomes averaged 2.3 per cent in January-February.
 
20. The inflation path during 2019-20 is likely to be shaped by several factors. First, low food inflation during January-February will have a bearing on the near-term inflation outlook. Second, the fall in the fuel group inflation witnessed at the time of the February policy has become accentuated. Third, CPI inflation excluding food and fuel in February was lower than expected, which has imparted some downward bias to headline inflation. Fourth, international crude oil prices have increased by around 10 per cent since the last policy. Fifth, inflation expectations of households as well as input and output price expectations of producers polled in the Reserve Bank’s surveys have further moderated. Taking into consideration these factors and assuming a normal monsoon in 2019, the path of CPI inflation is revised downwards to 2.4 per cent in Q4:2018-19, 2.9-3.0 per cent in H1:2019-20 and 3.5-3.8 per cent in H2:2019-20, with risks broadly balanced.
 
21. GDP growth for 2019-20 in the February policy was projected at 7.4 per cent in the range of 7.2-7.4 per cent in H1, and 7.5 per cent in Q3 – with risks evenly balanced. Since then, there are some signs of domestic investment activity weakening as reflected in a slowdown in production and imports of capital goods. The moderation of growth in the global economy might impact India’s exports. On the positive side, however, higher financial flows to the commercial sector augur well for economic activity. Private consumption, which has remained resilient, is also expected to get a fillip from public spending in rural areas and an increase in disposable incomes of households due to tax benefits. Business expectations continue to be optimistic. Taking into consideration the above factors, GDP growth for 2019-20 is projected at 7.2 per cent – in the range of 6.8-7.1 per cent in H1:2019-20 and 7.3-7.4 per cent in H2 – with risks evenly balanced.
 
22. Beyond the near term, several uncertainties cloud the inflation outlook. First, with the domestic and global demand-supply balance of key food items expected to remain favourable, the short-term outlook for food inflation remains benign. However, early reports suggest some probability of El Niño effects in 2019. There is also the risk of an abrupt reversal in vegetable prices, especially during the summer months. Second, inflation in fuel group items, particularly electricity, firewood and chips saw unprecedented softening in H2:2018-19. There is, however, uncertainty about the sustainability of this softening in inflation in fuel items. Third, the outlook for oil prices continues to be hazy, both on the upside and the downside. On the one hand, continuing OPEC production cuts will reduce supplies. On the other hand, there is considerable uncertainty about demand conditions. Should there be a swift resolution of trade tensions, a pick-up in global demand is likely to push up oil prices. However, should trade tensions linger and demand conditions worsen, crude prices may fall from current levels, despite production cuts by OPEC. Fourth, inflation excluding food and fuel has remained elevated over the past twelve months with some pick up in prices in February. However, should the recent slowdown in domestic economic activity accentuate, it may have a bearing on the outlook for inflation in this category. Fifth, financial markets remain volatile reflecting in part global growth and trade uncertainty, which may have an influence on the inflation outlook. Sixth, the fiscal situation at the general government level requires careful monitoring.
 
23. The MPC notes that the output gap remains negative and the domestic economy is facing headwinds, especially on the global front. The need is to strengthen domestic growth impulses by spurring private investment which has remained sluggish.
 
24. Against this backdrop, the MPC decided to reduce the policy repo rate by 25 basis points and maintain the neutral stance of monetary policy.
 
25. Dr. Pami Dua, Dr. Ravindra H. Dholakia, Dr. Michael Debabrata Patra and Shri Shaktikanta Das voted in favour of the decision to reduce the policy repo rate by 25 basis points. Dr. Chetan Ghate and Dr. Viral V. Acharya voted to keep the policy rate unchanged.
 
26. Dr. Chetan Ghate, Dr. Pami Dua, Dr. Michael Debabrata Patra, Dr. Viral V. Acharya and Shri Shaktikanta Das voted in favour of the decision to maintain the neutral stance of monetary policy. Dr. Ravindra H. Dholakia voted to change the stance from neutral to accommodative.
 
27. The minutes of the MPC’s meeting will be published by April 18, 2019.
 
28. The next meeting of the MPC is scheduled during June 3, 4 and 6, 2019.
 
NNN

RBI reduces repo rate by 25 bps to 6.0%, maintains neutral monetary stance

RBI logo
RBI logo
The Monetary  Policy Committee (MPC) of the Reserve Bank of India (RBI) today decided to reduce its key policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points (bps) to 6.0 per cent from 6.25 per cent with immediate effect while maintaining the neutral monetary policy stance.
 
Consequently, the reverse repo rate under the LAF stood adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.25 per cent, the RBI said in its First Bi-Monthly Monetary Policy Statement, 2019-20.
 
"These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth," the statement said.
 
This was the second consecutive reduction in the repo rate by the RBI. The MPC had reduced the repo rate by 25 bps to 6.25% in its Sixth Bi-Monthly Monetary Police Statement for 2018-19 on February 7.
 
The decisions were taken on the basis of an assessment of the current and evolving macroeconomic situation, the resolution of the MPC said.
 
"The MPC notes that the output gap remains negative and the domestic economy is facing headwinds, especially on the global front. The need is to strengthen domestic growth impulses by spurring private investment which has remained sluggish.
 
"Against this backdrop, the MPC decided to reduce the policy repo rate by 25 basis points and maintain the neutral stance of monetary policy," it said.
 
The MPC recalled that, in its statement in February 2019, CPI inflation was projected at 2.8 per cent for Q4:2018-19, 3.2-3.4 per cent for H1:2019-20 and 3.9 per cent for Q3:2019-20, with risks broadly balanced around the central trajectory. Actual inflation outcomes averaged 2.3 per cent in January-February.
 
"The inflation path during 2019-20 is likely to be shaped by several factors. First, low food inflation during January-February will have a bearing on the near-term inflation outlook. Second, the fall in the fuel group inflation witnessed at the time of the February policy has become accentuated. Third, CPI inflation excluding food and fuel in February was lower than expected, which has imparted some downward bias to headline inflation. Fourth, international crude oil prices have increased by around 10 per cent since the last policy. Fifth, inflation expectations of households as well as input and output price expectations of producers polled in the Reserve Bank’s surveys have further moderated. 
 
"Taking into consideration these factors and assuming a normal monsoon in 2019, the path of CPI inflation is revised downwards to 2.4 per cent in Q4:2018-19, 2.9-3.0 per cent in H1:2019-20 and 3.5-3.8 per cent in H2:2019-20, with risks broadly balanced," the statement said.
 
ADVERTISEMENT
The resolution said GDP growth for 2019-20 in the February policy was projected at 7.4 per cent in the range of 7.2-7.4 per cent in H1, and 7.5 per cent in Q3 – with risks evenly balanced. 
 
"Since then, there are some signs of domestic investment activity weakening as reflected in a slowdown in production and imports of capital goods. The moderation of growth in the global economy might impact India’s exports. On the positive side, however, higher financial flows to the commercial sector augur well for economic activity. Private consumption, which has remained resilient, is also expected to get a fillip from public spending in rural areas and an increase in disposable incomes of households due to tax benefits. Business expectations continue to be optimistic. Taking into consideration the above factors, GDP growth for 2019-20 is projected at 7.2 per cent – in the range of 6.8-7.1 per cent in H1:2019-20 and 7.3-7.4 per cent in H2 – with risks evenly balanced," it said.
 
The MPC said that, beyond the near term, several uncertainties cloud the inflation outlook. 
 
"First, with the domestic and global demand-supply balance of key food items expected to remain favourable, the short-term outlook for food inflation remains benign. However, early reports suggest some probability of El Niño effects in 2019. There is also the risk of an abrupt reversal in vegetable prices, especially during the summer months. Second, inflation in fuel group items, particularly electricity, firewood and chips saw unprecedented softening in H2:2018-19. There is, however, uncertainty about the sustainability of this softening in inflation in fuel items. 
 
"Third, the outlook for oil prices continues to be hazy, both on the upside and the downside. On the one hand, continuing OPEC production cuts will reduce supplies. On the other hand, there is considerable uncertainty about demand conditions. Should there be a swift resolution of trade tensions, a pick-up in global demand is likely to push up oil prices. However, should trade tensions linger and demand conditions worsen, crude prices may fall from current levels, despite production cuts by OPEC. Fourth, inflation excluding food and fuel has remained elevated over the past twelve months with some pick up in prices in February. However, should the recent slowdown in domestic economic activity accentuate, it may have a bearing on the outlook for inflation in this category. Fifth, financial markets remain volatile reflecting in part global growth and trade uncertainty, which may have an influence on the inflation outlook. Sixth, the fiscal situation at the general government level requires careful monitoring," it said.
 
Among the MPC members, Dr. Pami Dua, Dr. Ravindra H. Dholakia, Dr. Michael Debabrata Patra and RBI Governor Shaktikanta Das voted in favour of the decision to reduce the policy repo rate by 25 basis points. Dr. Chetan Ghate and Dr. Viral V. Acharya voted to keep the policy rate unchanged.
 
Dr. Ghate, Dr. Dua, Dr. Patra, Dr. Acharya and Mr. Das voted in favour of the decision to maintain the neutral stance of monetary policy. Dr. Dholakia voted to change the stance from neutral to accommodative.
 
The minutes of the MPC’s meeting will be published by April 18. The next meeting of the MPC is scheduled during June 3, 4 and 6, 2019.
 
NNN

(Our News Desk can be contacted at desk@netindian.in)

Did you like this story? Make a donation and help us to serve you better.
ADVERTISEMENT
 
Syndicate content
© Copyright 2012 NetIndian. All rights reserved. Republication or redistribution of NetIndian content, including by framing or similar means, is expressly prohibited without the prior written consent of NetIndian Media Corporation. Write to info[AT]netindian[DOT]in for permission to use content. Read detailed Terms of Use.