OPINION, P6 ECONOMY, P2 AMITABH KANT Privatisation of coal mining will prove transformative MARKETS, P10 SHOBHANA SUBRAMANIAN OFFERING OPPORTUNITIES FINANCIAL TRANSACTIONS Farm growth outlook is quite promising, but rural wages likely to remain depressed PM invites US companies to invest in India Mobile banking to be most preferred mode in coming days: Rajnish NEW DELHI, THURSDAY, JULY 23, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 123, 22 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 SENSEX: 37,871.523 ▼ 58.81 NIFTY: 11,132.60 ▼ 29.65 NIKKEI 225: 22,751.61 ▼ 132.61 HANG SENG: 25,057.94 ▼ 577.72 `/$: 74.76 ▼ 0.02 `/€: 86.11 ▼ 0.66 BRENT: $43.72 ▼ $0.60 GOLD: `50,015 ▲ `751 IN THE NEWS L&T Q1 net profit plunges 79% to `303 crore THE COVID-19 pandemic has hit the earnings of infrastructure behemoth Larsen and Toubro (L&T) hard, as its consolidated net profit collapsed 79% year-on-year to `303 crore during the April-June quarter, reports fe Bureau in Mumbai. AI cuts monthly allowances of staff by up to 50% AIR INDIA has reduced the monthly allowances of its employees who have a monthly gross salary of more than `25,000 by up to 50%, according to an internal order of the company, reports PTI. BATTLING THE DOWNTURN More fiscal steps certain, to be well-timed, says CEA Consumers, investors to be sanguine in a couple of months: Subramanian FE BUREAU New Delhi, July 22 THE GOVERNMENT IS initiating more fiscal measures to reverse the sharp growth slide, which has been exacerbated by the Covid-19 pandemic. Chief economic adviser (CEA) Krishnamurthy V Subramanian said on Wednes- day that it’s now not a question of ‘if’ but ‘when’ to make such an intervention. Speaking at a virtual Ficci event, the CEA said economic uncertainties will substantially ease once a credible Covid19 vaccine is rolled out in, say, about two months. Continued on Page 2 Financial products: Sebi chief says it’s time to merge WhatsApp to work market infra for gilts, corp bonds with local partners WHATSAPP INDIA is set to launch pilots in the segments of small-business loans, micro-pension and insurance in partnership with domestic service providers, in keeping with the Reserve Bank of India’s (RBI) five-year financial inclusion strategy, Abhijit Bose, head of India, WhatsApp, said on Wednesday, reports fe Bureau in Mumbai. SEBI CHAIRMAN Ajay Tyagi believes it’s time to unify the financialmarketsandmergethe market infrastructure for gilts and corporate bonds, reports fe Bureau in Mumbai. “Havingtwoseparateecosystemsresultsinartificialsegmentationofinvestorsanddivergent governance and regulatory norms for institutions in the two marketsperformingsimilarfunctions,”hesaidonWednesday.He feels policymakers should focus on deepening the corporate STATUS OF KEY STIMULUS MEASURES NOTIFIED `3-lakh-cr guaranteed loans to MSMEs; `20,000-cr subordinate debt Suspension of IBC proceedings for fresh defaults bond market considering the problems in the banking sector. “There’s a dire need to move down the rating curve in corporatebondmarket,” he said. Detailed report on Page 11 Ordinances on removal of inter-state agri trade barriers, and contract farming Two schemes to facilitate `75,000-cr liquidity to NBFCs NOT YET List of strategic sectors, each to have up to 4 PSUs 74% FDI in defence under automatic route PSBs included under new privatisation policy: Pandey FE BUREAU New Delhi, July 22 Ajay Tyagi chairman, Sebi Ordinance to amend Essential Commodities Act THE CENTRE'S PROPOSED new policy to have not more than four public sector undertakings (PSUs) in each ‘strategic sector’ will likely apply to the banking space too,departmentof investment and public asset management (DIPAM) secretary Tuhin Kanta Pandey said on Wednesday. This will essentially Tuhin Kanta Pandey, secretary, DIPAM mean that the numberof public sector banks (PSBs) could be brought down to four from 12 now,via privatisation or consolidation. Continued on Page 2 TOUGH MEASURE US gives China 72 hours to shut down Houston consulate CATE CADELL & DAVID BRUNNSTROM Beijing/Washington, July 22 THE US HAS told China to close its consulate in Houston in a dramatic worsening of ties between the world’s two biggest economies. Washington “abruptly demanded” closure of the Houston consulate on Tuesday, China’s foreign ministry said, calling the move an “unprecedented escalation”. The editor of an official Chinese media outlet said China had beengiven 72 hours to do so. The US State Department confirmed the decision and said the move was made Global corona cases exceed 15 million GLOBAL CORONAVIRUS infections surged past 15 million on Wednesday, according to a Reuters tally, with the pandemic gathering pace even as countries remain divided in their response to the crisis. Globally, the rate of new infections shows no sign of slowing. ■ Page 8 Some local media reports said documents had been burned in a courtyard at the consulate in Houston US said the shutdown orderwas 'to protectAmerican intellectual property and private info' US-China ties have worsened sharply this year over a range ofissues “to protect American intellectual property and Americans’ private information”. Beijing condemned the order and threatened retaliation,but did not saywhat measures it might take. Continued on Page 2 China may shut US Wuhan consulate CHINA IS CONSIDERING ordering the closure of the US consulate in the central cityof Wuhan, a person with direct knowledge of the matter said on Wednesday, after Washington told China to shut its consulate in the cityof Houston, reports REUTERS. China’s foreign ministry did not immediately replyto a request for comment, but at a media briefing earlier on Wednesday warned of possible retaliation over the US decision. The US embassy in Beijing did not immediately respond to a request for comment. Rise & shine FE BUREAU Gold, silver soar in value Local gold prices crossed `50,000/10 g on Wednesday and silver, too, moved in tandem, amid fears new stimulus measures by EU and others may stoke global inflation. 60,000 55,000 50,000 45,000 MCX Gold 59,075 Spot (`/10g) MCX Silver Spot (`/kg) 46,055 40,000 35,000 30,000 38,995 Jan 1, 2020 50,015 July 22, 2020
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.