The benchmark stock indices have opened the day with significant gains after yesterday’s losses.Join us as we follow the top business news through the day.11:30 AMMarkets bet on herd immunity
11:00 AMBold action needed to revive economy, says industryFollowing a 23.9% contraction in GDP in the first quarter of FY21, industry has urged “bold and decisive” action from the government to stimulate demand for India to return to a positive growth trajectory, the findings of a survey show.Conducted in August and covering 166 firms, the survey by FICCI and Dhruva Advisors said weak demand continued to remain the key bottleneck as almost 68% have reported this as their biggest challenge; 41% have said sales in August were less than 50% from a year earlier. Another 21%, reported sales between 50%-75% of the August 2019 figures.“Reviving the economy requires sustained effort, especially when, in the first quarter, our GDP suffered a major blow,” said Sangita Reddy, president, FICCI.
10:40 AMRupee rises 16 paise to 73.39 against US dollar in early tradeThe strength in the stock indices has helped the rupee hold against the dollar.PTI reports: “The rupee strengthened by 16 paise to 73.39 against the US dollar in opening trade on Thursday supported by weak American currency and positive domestic equities.At the interbank forex market, the domestic unit opened at 73.42 against the US dollar, gained further ground and touched 73.39 against the US dollar, registering a rise of 16 paise over its previous close.On Wednesday, the rupee had settled at 73.55 against the US dollar.“Inflows related to Reliance Retail stake sale helped the rupee recover from 73.80 to 73.50 intra-day in the previous session. The inflows are likely to continue ,” said Abhishek Goenka, Founder and CEO, IFA Global.Goenka further said that market participants are awaiting European Central Bank (ECB) rate decision, scheduled to be released later in the day.“Most market participants expect the ECB to intervene verbally to talk down the currency given that the pace of recovery in the Eurozone is slowing and headline inflation has turned negative,” he said adding that US jobless claims due during the day will offer further insight into the recovery in the US labour market.The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.09 per cent to 93.17.On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 296.82 points higher at 38,490.74, and the broader NSE Nifty advanced 79.75 points to 11,357.75.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 959.09 crore on a net basis on Wednesday, according to exchange data.Brent crude futures, the global oil benchmark, fell 0.42 per cent to USD 40.62 per barrel.”10:20 AMCredit sachets can aid capital stressed PSBs: RBI deputy governorPublic sector banks should learn from FMCG players and “democratise credit”, a move that can help them solve the “biggest fiscal challenge” of recapitalisation, former RBI deputy governor Viral Acharya said on Wednesday.“There are some PSBs whose business model is so broken in my assessment that there won’t be any immediate suitors who are interested in buying their equity in a significant manner or at decent prices. What is the option? I’d say they should focus on sachetisation or democratisation of credit,” Mr. Acharya said, speaking at a summit organized by ETBFSI.com.
10:00 AMIndian shares rise as Reliance hits record highA good start to the day for stocks, thanks to the index heavyweight RIL.Reuters reports: “Indian shares rose on Thursday, driven by gains in shares of Reliance Industries after reports of potential stake sales in the company’s retail arm, with strength in broader Asian markets also boosting investor sentiment.The blue-chip NSE Nifty 50 index rose 0.67% to 11,353.75, while the benchmark S&P BSE Sensex was up 0.75% to 38,473.39 by 0354 GMT.Mukesh Ambani-led Reliance Industries Ltd rose as much as 2.1% to hit a record high, a day after it secured $1 billion in investment in its retail business from private equity firm Silver Lake. Middle East sovereign firms are also in talks to buy stakes in the retail arm, according to reports.The Nifty bank index rose 0.91%. India’s top court is set to continue hearing a case on waiving interest rates on loans under a moratorium later today.Broader Asian markets rose following an overnight rally in technology-related stocks on Wall Street after a global selloff.”9:30 AMRBI sets sectoral norms for resolution of COVID-19 related stressed assetsThe Reserve Bank on Monday specified five financial ratios and sector-specific thresholds for resolution of COVID-19 related stressed assets in 26 sectors, including auto components, aviation, and tourism.The circular issued by the RBI for resolution of stressed assets is based on the recommendations of the K.V. Kamath committee, which submitted its report on September 4. “The recommendations of the Committee have been broadly accepted by the Reserve Bank,” RBI said in a release.The key financial ratios suggested by the committee are total outside liabilities/adjusted tangible networth; total debt/EBITDA; current ratio, which is current assets divided by current liabilities; debt service coverage ratio; and average debt service coverage ratio.
