The government is likely to finalise a second stimulus package for industry, the poor, and farmers on Friday. Meanwhile, they have also decided to suspend insolvency and bankruptcy proceedings for at least six months owing to challenges businesses are facing due to Covid-19 outbreak. Here are the top 10 stories that made news on Thursday:
PM Modi, Sitharaman to meet on Friday to finalise second stimulus package
PM Narendra Modi and FM Nirmala Sitharaman will again meet on Friday to finalise a second stimulus package for industry, the poor, and farmers. An announcement is expected within the next 24-48 hours. Friday’s meeting follows a wide range of deliberations held within the government and with eminent experts. However, there may not be a “big-bang” stimulus package and the government thinking is to go for smaller, targeted announcements. Read Here.
India Inc gets IBC breather for six months amid coronavirus outbreak
The government has decided to suspend insolvency and bankruptcy proceedings for at least six months owing to challenges businesses are facing due to the Covid-19 pandemic, a senior government official said. A new Section is likely to be added to the Insolvency and Bankruptcy Code (IBC). It will suspend Sections 7, 9, and 10, which are used to trigger insolvency proceedings for six months or a period not exceeding one year from the date they commence, the official said. Read Here.
Coronavirus impact: RBI’s TLTRO 2.0 gets cold-shoulder from banks
The Reserve Bank of India (RBI) has received bids for only about half the Rs 25,000 crore it offered under its revised Targeted Long Term Repo Operations (TLTRO), indicating that banks are reluctant to lend to non-banking financial companies (NBFCs). Read Here.
One month of lockdown: Small-caps outperform Sensex, mid-caps
The S&P BSE SmallCap index recovered 25.1 per cent, compared with a 24.3 per cent rise in the S&P BSE Sensex, and 22.1 per cent gain in the S&P BSE MidCap index from their respective 52-week lows seen on March 24. The run-up has been on account of a rally in stocks of pharmaceutical, fertiliser, chemicals and auto ancillary stocks. Read Here.
In sync with the global trend, consumer goods major Unilever on Thursday announced it was withdrawing its 2020 growth and margin guidance. According to a recent report citing the National Investor Relations Institute in the US, some 46 companies have withdrawn quarterly guidance and 151 annual guidance in a month. Read Here.
Quarantine hotels: It’s business unusual amid coronavirus outbreak
A bus drove through the gates of Park Inn by Radisson Amritsar with a convoy of cars. The guests stepped out of the bus and formed a single file. A strict distance between them revealed the unusual circumstances of their arrival. Not in the company of family and friends, the 29 individuals were instead led by a team of doctors and police personnel. The doorman was absent and so were the bellboys. Read Here.
Franklin MF shuts 6 debt schemes over redemption pressure, liquidity crunch
Franklin Templeton Mutual Fund (MF) on Thursday decided to wind up six of its debt schemes oriented towards high-yield investments — with a combined asset base of Rs 25,856 crore — citing continued redemption pressure and lack of liquidity in the debt markets amid the lockdown and the coronavirus pandemic. According to industry sources, Franklin Templeton MF had over Rs 3,000 crore of borrowing. Read Here.
HUL, RB and Amul among top advertisers on TV amid coronavirus lockdown
Hindustan Unilever (HUL), RB (Reckitt Benckiser) and Gujarat Co-operative Milk Marketing Federation (GCMMF), the makers of Amul, were the leading advertisers on TV during the lockdown, data by the Broadcast Audience Research Council (BARC) shows. Read Here.
Retail India set for a recast as e-tailers woo kiranas
The humble corner store has emerged as the unlikely darling of multi-billion-dollar corporations, online supermarkets and digital payment startups, courted for its reach, agility and customer insight displayed at a time when many well-heeled online vendors have buckled, LiveMint reported.
Corporates miss vendor payments, bill discounting platforms see red
Invoice discounting platforms – which help SMEs monetise long-dated trade bills and promissory notes – have started seeing ‘repayment delays’ against the backdrop of the nationwide lockdown. Several large corporates which have issued ‘bills of credit’ are now demanding additional 30 to 60 days to honour their commitment, The Economic Times reported.