OPINION, P6 ECONOMY, P3 INTERNATIONAL, P4 EDITORIAL RISING PETROL PRICES AFTER TRUMP GAFFE Pradhan seeks Saudi help to keep rates in check Apple CEO Tim Cook changes his Twitter name to ‘Tim Apple’ Leaked Rafale papers are genuine, so, govt’s OSA argument a weak one RBI should cut CRR levels as this will create room for lowering rates NEW DELHI, MONDAY, MARCH 11, 2019 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLV NO. 8, 156 PAGES, `6.00 (PATNA `6.00, RAIPUR `7.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E 2019 LOK SABHA ELECTIONS Seven-phase polls begin on April 11 Assembly polls for Andhra, Odisha, Arunachal and Sikkim to be held simultaneously, but J&K has to wait Date of polls No. of constituencies PHASE I PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6 PHASE 7 April 11 April 18 April 23 April 29 May 6 May 12 May 19 91 97 115 71 51 59 59 PSU stocks (`/piece) 335 Buyback price As on Mar 1, 2019 38.8 23.7 The iNICU technology acts as an affordable neonatal bedside safety surveillance system that links diverse medical devices ■ PERSONAL FINANCE, P9 BEL Capital gains tax on sale of house The one-time tax exemption on investing capital gains in two properties should be used judiciously SJVN MOIL Coal Nalco NLC India PRASANTA SAHU New Delhi, March 10 ■ INFRASTRUCTURE, P11 Gujarat betting big on Dholera Touted as India’s largest greenfield city, DSIR has seen work get underway in 22--sq-km activation area QuickPicks 4 Indians among 157 killed in Ethiopian Airlines plane crash A NAIROBI-BOUND Boeing 737 crashed six minutes after an early-morning take-off from Addis Ababa on Sunday, killing all 149 passengers, including four Indians, and eight crew on board, Ethiopian Airlines said as world leaders offered condolences to distraught next-of-kin. The Boeing 737800MAX is the same type as the Indonesian Lion Air jet that crashed last October, killing all 189 people on board. PAGE 4 BY DEFINITION, BUYBACK of its ownsharesbya firmshrinks itsequitybaseandenhancesthe value of each share. However, this hasn’t been the case in any of the series of buybacks by PSUs since FY17. On the contrary, the stocks of all the PSUs whichhaveboughtbackchunks of theirshares have fallen since the exerciseswere completed. AnFEanalysisof10ofthese firms which have undertaken thesharebuybackexerciseonce ormoreshowtheirstockslosing value by as much as 17-54% (a few others too, undertook buybacks but the stocks split thereafter). 28 23.2 85 IoT solution saves newborns 86 66.2 ■ eFE, P8 151 183 240 After price restructuring, the UK retailer shifts focus to womenswear, lingerie to expand in India EIL KIOCL BHEL NHPC The decline in most of these PSU stocks is sharper than the nearly 16.4% fall in the total market capitalisation of all listed PSUs to `12.7 lakh crore as on March 1, 2019, from `15.2 lakh crore on March 31, 2017.During the same period, the BSE M-Cap had risen 17% to `14.2 lakh crore. Defence PSU Bharat Electronics(BEL)sawitssharevalue lose a massive 54% (as on March 1,2019) comparedwith the buyback price of `183 on March 15, 2018. SJVN, which bought back shares at a price of `38.8onJanuary19,2018,saw its shares lose 39% from that level,as on March 1,2019. Continued on Page 2 GOING NORTH IndiGo, Jet flight cancellations see spot fares rise ARUN NAYAL New Delhi, March 10 WITH TWO MAJOR carriers — IndiGo and Jet Airways — cancelling around 200 flights daily, spot fares (those booked 7-15 days before the date of travel)areincreasingcompared with the prices in Januarywhen the flight schedules were more or less normal. On key metro routes like the Delhi-Mumbai, spot fares have risen by up to 20% since Januarythisyear. Fliersbookingticketswithin sevendaysoftravelhavetoshell out over `20,000 for a to-andfro journey between Delhi and Spot fares, ` (0-7 days) Jan Del-Mum-Del Del-Blr-Del Mum-Blr-Mum Del-Chen-Del Del-Hyd-Del Feb Mar 16,723 15,106 12,413 16,327 13,666 19,717 17,610 14,051 16,342 10,755 20,103 18,420 14,862 16,767 13,354 10,979 9,909 7,961 11,552 8,343 11,871 11,280 8,234 11,370 7,494 12,463 11,531 9,426 11,394 8,674 Spot fares, ` (0-15 days) Del-Mum-Del Del-Blr-Del Mum-Blr-Mum Del-Chen-Del Del-Hyd-Del Mumbai, which is higher by around 20% compared with spot fares in January,according to data provided byYatra.com. Similarly,aDelhi-Bengaluru ticketwillcost`18,430fortravelling afterseven days from the booking date — around 21% comparedwith January. Analysts said spot fares have risenasIndiGostartedcancelling around 30 flights daily since February due to shortage of pilots, which will carry on this month and the Jet fleet got depletedwithseveralgroundings duetonon-paymenttolessors. Continued on Page 2 equityschemes.AstudybyValueResearch revealed that of 364 equityschemes,67% had given a negative return in the past one year. Of this, 78 equity schemes have given a negative return of more than 10%.In fact,inflows into pure equity schemes slipped to their lowest levels in 25 months in February. The investors moving out before two years are mainly those who put in lump sum amounts rather than those who invest through SIPs (systematic investment plans). ● ASSET/LIABILITY 45.99 Dec 2017 40.89 Source: Amfi ered by Association of Mutual Funds in India (Amfi). One reason for this could be the poor performance of Continued on Page 2 ‘Binani, Essar Tougher norms for HFCs on the cards This will be the latest in a resolution Asset quality of Move latest in a series of steps, including tougher capital and borrowHFCs slips a tad of initiatives within rules’ seriesIL&FS & ing norms, proposed by the after Detailed report on Page 5 170 M&S knows what women want stayed invested for more than twoyears,this share had fallen to just 41% in December 2018.Thedatahavebeengath- Continued on Page 2 PSU stocks plummet post buyback process ■ BRANDWAGON, P10 Dec 2018 providing adequate security forces for J&K, Arora said: “(Availability) of security forces isanissue,butyoucannotdisregard the recent events (Pulwama attack) in the state. Source: Election Commission (J&K). This was also a demand put forth by representatives of political parties we met during our visit there. Availability of security forces is a constraint,” Arora told reporters. Asked if the home ministry didnotcooperatewiththeECon 54.58 52.76 THE INSOLVENCYAND BankruptcyBoardofIndia(IBBI)has said it did not find any contradiction in approvals of resolution for Essar Steel and Binani Cementinthecontextof“value maximisation”,reports PTI. The NCLT has okayed ArcelorMittal’s`42,000-croreplan, rejecting the Ruias’ `54,389croreoffer,whileinBinanicase, it okayed UltraTech Cement’s offer which was higher than that of Dalmia Bharat group. PERCEPTION ISSUE FE SPECIALS 59.92 Dec 2016 1.5 131 WITH TODAY’S ISSUE ■ Counting date: May 23 157 ES M PA N I ST CO S FINE I N D I A’ ■ Total number of seats: 543 114 PRESENTS More than 2 years (%) Dec 2014 ● IBBI CLEARANCE 88 63.1 MARCH 2019 Percentage of retail investors holding period in equity mutual funds FEWER RETAIL INVESTORS in equity schemes of mutual fundsnowhavethepatienceto stay invested for long periods. While four years ago, in December 2014, as much as 60% of retail equity AUM (assets under management) 75 53.7 READ TO LEAD Study shows in last one year, out of 364 such schemes, 67% gave negative returns CHIRAG MADIA Mumbai, March 10 232 THE MOST DEFINITIVE RANKING OF INDIA’S TOP 1000 COMPANIES Long-term investors on the decline Dec 2015 EXPRESS NEWS SERVICE New Delhi, March 10 THE 17TH LOK SABHA elections will be held in seven phases, between April 11 and May 19, involving close to 90 crore voters, Chief election commissioner (CEC) Sunil Arora announced on Sunday. The results will be announced on May 23. The model code of conduct (MCC) came into effect immediately after the announcement. Assembly elections for Andhra Pradesh, Arunachal Pradesh, Odisha and Sikkim will also be held simultaneously. However, despite feedback from political parties to holdJammuandKashmir(J&K) polls together with general elections, the Election Commission (EC) decided otherwise,citing securityreasons. “We need a sizeable number ofsecuritypersonnelforprotectionofeverycandidatecontesting Assembly polls in the state EQUITY MF SCHEMES DHFL fiasco 1.2 BANIKINKAR PATTANAYAK New Delhi, March 10 0.6 THE NATIONAL HOUSING Bank (NHB) is considering tightening the asset-liability management (ALM) normsfor housing finance companies (HFCs) to help detect their solvencyconcerns earlyto ensure swift course correction, sources told FE. “The ALM guidelines relat- 0.9 (%) 1.2 1.3 Gross NPA 0.6 Net NPA 0.6 0.3 0 ‘14-15 ‘15-16 ‘16-17 ‘17-18 ‘18-19* Source: NHB; RBI *As of Sept 2018 ing to forecasting and analysing ‘what-if scenario’ and preparation of contingencyplanscouldberevisedby the regulator, among others,” said an industry source. regulator after defaults by IL&FS entities and concerns about DHFL’s repayment ability have exposed risks in the shadow-banking space, at a time when liquidity remains tight. While rollovers/redemptions of `1-1.2 lakh crore are linedupforMarchalone(inthe overall NBFC space), these companies are finding it difficult to raise funds at reasonable rates through short-term money market instruments. Continued on Page 2
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