OPINION, P6 COMPANIES, P4 ANSUMAN DAS India needs a National Mineral Index, quite like the Coal Index INTERNATIONAL, P8 SHOBHANA SUBRAMANIAN COVID DISRUPTIONS TIT FOR TAT Without a near-term govt spending of `4-5 lakh cr, even rebooting the economy looks difficult JSW Steel posts first quarterly loss in over 4 years After Houston move, China tells US to shut Chengdu consulate NEW DELHI, SATURDAY, JULY 25, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 125, 22 PAGES, `10.00 (PATNA `9.00, RAIPUR `10.00) 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: 38,128.90 ▼ 11.57 NIFTY: 11,194.15 ▼ 21.30 NIKKEI 225: 22,751.61 ▼ 132.61 HANG SENG: 24,705.33 ▼ 557.67 `/$: 74.83 ▼ 0.07 `/€: 86.85 ▼ 0.25 BRENT: $43.39 ▲ $0.08 GOLD: `50,960 ▲ `341 Continued on Page 2 China smartphone brands' market share in India slips PVBs 2.3 Mar ‘21 Mar ‘20 FBs Severe stress All SCBs Very severe stress AllIndia Current installed renewable energy capacity NTPC (in megawatts) A car isn’t merely hardware; a lot of it is software Going forward, as more and more electronics become part of a car, it will cease to be mere hardware that takes you from point A to B, says Kishor Patil of KPIT Technologies ■ Motobahn, P9 Weak sales, better loss ratio in Q1 for ICICI Lombard Profit met expectations; health remains top-line driver; motor profitability could lead to rate cuts; downgraded to ‘Reduce’ from Hold with TP rising to `1,040 from `1,027 ■ Investor, P9 QuickPicks Law on e-tailers displaying country of origin: SC seeks Centre’s view THE SUPREME Court on Friday sought response from the Centre on a PIL seeking directions to the government to formulate a law that will make it mandatory for e-commerce sites such as Amazon, Flipkart and Snapdeal, and businesses to “disclose and display the country of origin of all goods sold in India” so that customers can take an informed decision, reports fe Bureau in New Delhi. A Bench led by CJI SA Bobde sought response from the commerce ministry and others. PAGE 2 `223-crore endowment spend: Tata trust gets relief from ITAT IN A relief to the Tata Education and Development Trust, the Income Tax Appellate Tribunal (ITAT) in Mumbai on Friday ordered that over `223 crore of the Trust’s income be exempted from tax in a case related to assessment year 2011-12 and 2012-13, reports fe Bureau in New Delhi. The funds were used by the Trust to create endowment funds at Cornell and Harvard Universities in the US. PAGE 4 CCD probe reveals `3,500-cr fund diversion; I-T dept gets clean chit AN INVESTIGATION into the circumstances that led to the alleged suicide of VG Siddhartha, who was the owner of the Coffee Day group, has revealed `3,535 crore being siphoned off from the company by the entrepreneur's personal firms, reports PTI. The probe gave a clean chit to the tax department that was being alleged to have harassed Siddhartha. The investigation was led by ex-deputy inspector general of CBI Ashok Kumar Malhotra. 50.1 48.6 64.5 56.5 62.6 84.7 21.4 49 14,000 11.5 SFBs UCBs Total in system Source: FSR report 0 June 3 July 22 That catch less & less (% of people testing positive) Share of RT-PCR in total tests falls from 60% to 26% 8 9,619 0 On avg, RTPCR catches 3 times the infections RAT does 6.9 14,810 6 4 7,000 moratorium, somewhat higher than estimates provided by bankers. 4.3 2 6,538 5,250 June 29 0 July 22 June 18July 15 July 15-21 Source: Delhi medical bulletin, MoHFW brieﬁng, Delhi HC afﬁdavit Continued on Page 2 KHARIF FE BUREAU New Delhi, July 24 40,000 10,000 Target 2030 ● THE GREAT HACK Special Features 6.1 10 17,500 1,75,000 Target 2022 20 Sowing up 19%, no clarity on prices 87,670 928 RT-PCR RAT 3,500 While the disruption due to the lockdownwas expected, the report reveals that nearly half of the outstanding credit till April 30, was under (New infections upon new tests, %) 23.1 10,500 FBs Loan moratorium as on April 30, 2020 30 As more RAT tests done Mar ‘21 4,50,000 THE pandemic and the lockdown and anti-China sentiments in the country seem to have severely dented the dominance of Chinese brands in the domestic market. Their total market share fell from 81% to 72% in the AprilJune quarter, reports Rishi Ranjan Kala in New Delhi. of Delhi infected % of total outstanding NBFCs 40 24% 12.5 13.5 14.2 14.7 3.9 4.5 5.1 5.8 8.5 7.3 7.7 8.3 8.7 4.2 PVBs Medium stress % of total customers PSBs Mar ‘21 Mar ‘20 Daily tests catch less infection Sero survey says (in %) 15.2 15.5 15.9 16.3 PSBs Baseline Where did the virus go? 1,000+ could hack various accounts at Twitter JOSEPH MENN, KATIE PAUL & RAPHAEL SATTER San Francisco, July 24 MORE THAN A thousand Twitter employees and contractors as of earlier this year had access to internal tools that could change user account settings and hand control to others,two former employees said, making it hardtodefendagainstthehacking that occurred lastweek. Twitter and the FBI are investigating the breach that allowed hackers to repeatedly tweet fromverified accounts of the likes of Democratic presidentialcandidateJoeBiden,billionaire philanthropist Bill Gates,Teslachiefexecutive officer Elon Musk and former New York mayorMike Bloomberg. Twitter said on Saturday that the perpetrators “manipulated a small number of employees and used their credentials” to log into tools and turn over access to 45 accounts. On Wednesday, it said the hackers could have read direct messages to and from 36 accounts but did not identifythe affected users.The ex-employees familiar with Twitter security practices said too many people could have done the same thing, over 1,000 as of earlier in 2020, including some at contractors like Cognizant. Continued on Page 2 IN THE FAST LANE Border Roads Organisation D-G Lt Gen Harpal Singh visits the Atal Tunnel to review the ongoing construction work which is in its final phase, on the Manali-Leh road on Friday On a high URVASHI VALECHA Nifty’s valuations sail past 2008 levels After rising by 47% from its March lows, the benchmark Nifty50 is currently trading at a one-year forward price earnings (PE) multiple of 20.51 times. This is higher than the frothy valuations of 19.7 times seen in 2008 before the market crashed. Such rich valuations have experts worried, who say that the markets are in the ‘expensive’ territory. ■ P10 25 20 17.16 15 10 5 NIFTY one-year forward PE 20.51 15.59 10-year average Liquidity-driven rally sends the Nifty valuation to the roof July 24, 2019 Source: Bloomberg July 24, 2020 HIGHER THAN NORMAL monsoon rainfall across the country, 5% above normal so far, has boosted sowing of kharif crops by 19% on year as on Friday, brightening the prospects of another year of bumper harvest. Also,there are no reports of anyserious pest attacks on the standing crop so far,except the spread of locusts in some states which have lately come under control. However, farmers’ profitabilitywill hinge on prices,of which it is earlyto provide any guidance, according to analysts. As of now, most rabi crops are being sold profitably by farmers, and this has helped avert a rural distress during the pandemic period, alongwith theworks available under the rural employment guarantee scheme. “As of today, we should expectatleastlastyear’slevelor even higheroutput.This is possible because of climate resilient varieties of paddy and adoption of good agricultural practicesbyfarmers,”Trilochan Mohapatra, director general of Indian Council of Agricultural Research,told FE on Friday. NOT QUITE CRICKET THE EAGERLY AWAITED Indian Premier League (IPL) is now slated to start from September 19 in the UAE, but the closed-door matches with no stadium attendance are likely to hit revenues of official broadcaster Star India. Another factor which may dampen the revenues is the likelihood of Chinese brands keeping away from big-time advertising due to geopolitical tensions.Earlier,80%ofmobile advertisingcamefromtheChinese brands, Sandeep Goyal, chairmanatMogaeMedia,said. Star India was earlier estimated to earn advertising revenues in the range of `2,800`3,000crore(whenthematches were to start from March 29), butnowmaybeabletoearnonly around`2,000crore,seniormedia expertAnita Nayyartold FE. Continued on Page 2 ■ Earlier estimated ad revenue for Star India `2,800-3,000 cr ■ Star India may now earn ~`2,000 cr Ad revenues likely to see a drop ■ Usual clients like travel, beverages and apparel brands may not be willing to spend ■ Tech and e-commerce firms likely to be big advertisers 80% ad for mobiles comes from Chinese brands ■ Work from home to boost viewership UGLY TRUTHS RBI circular on defaulters caused the falling out: Urjit RAHUL SATIJA Mumbai, July 24 MOVESTODILUTEanewbankruptcy law caused disagreements between Prime Minister Narendra Modi’s government and the central bank,according toformerReserveBankofIndia governorUrjit Patel. The rift centred around a February 2018 circular issued by RBI, which forced banks to immediately classify borrowers as defaulters when they Instead of buttressing and futureproofing the gains thus far, an atmosphere to go easy on the pedal ensued. Until then, for the most part, the finance minister and I were on the same page... —URJIT PATEL , FORMER GOVERNOR, RBI delayed repayments, and which barred defaulting company founders from trying to buy back their firms during insolvency auctions. In a book released on Friday, Patel — who headed RBI between September 2016 and Paddy 17.3 Pulses 25.7 Oilseeds 24.6 14 Coarse cereals 22.5 Cotton Sugarcane 1 18.5 Total *As of July 24 Source: agriculture ministry Monsoon rainfall June 1-July 24 (% chg from LPA) East/ North-east 16 North-west -18 Central India 5 South peninsula 16 5 All India Source: IMD Reservoir level 50 40 July 17, ‘20 (% of capacity) Normal level* 36 27 30 20 10 0 North East West South Central All India *10-year average Source: Central Water Commission Continued on Page 2 ● FLIGHT PLAN Come September, an IPL sans fans in UAE ASMITA DEY New Delhi, July 24 Kharif sowing* % change (y-o-y) 36 KEEN TO REDUCE its carbon footprint and have a diversified portfolio of power assets, state-run NTPC, by name and predominantly a thermal player, is augmenting its Actual Mar ‘21 Mar ‘20 ISHAAN GERA 41 ANUPAM CHATTERJEE New Delhi, July 24 Mar ‘20 29 INDIA'S CONCERTED efforts to strengthen the business climate and encourage investment in trade have helped attract investors, but the country needs further economic reforms to ensure sustainable and more inclusive growth, according to the IMF, reports PTI. THE ECONOMIC FALLOUT of the pandemic is expected to push up non-performing assets (NPAs) of the banking sector, Reserve Bank of India (RBI)saidonFriday,estimating theratioofgrossNPAsmayrise to 12.5% by March next year, in a baseline scenario. The central bank’s Financial Stability report (FSR), noted the NPA ratio could jump to as high a level as 14.7% in the event of severe stress. 20 15 10 5 0 49.2 India needs more reforms to attract investors: IMF renewable energy (RE) capacityin a bigway.And the chosen route is acquiring RE assets, then the greenfield plants. The PSU has issued tenders to acquire 1,000 MW of operational solar plants, running for at least a year,and supplies power to their buyers at not more than `5 per unit. The move is seen by industry experts as the power major’s initial step,while it traverses a route over the next 10years to have massive RE assets of 45,000 MW. ANKUR MISHRA Mumbai, July 24 Projection of SCBs’ GNPA ratios 31.1 By 2030, it plans to have 45 GW of green generating capacity, of which 30 GW will be solar power In a severe stress situation, this could be as high as 14.7% 11.3 INDIA’S FOREX reserves continued to hit record-high levels as they rose by $1.275 billion as on July 17 compared with the week before to $517.63 billion, according to the latest data put out by the Reserve Bank of India (RBI), reports fe Bureau in Mumbai. COVID CAPITAL NPAs could be as high as 12.5% of loans by March 67.9 NTPC to buy 1 GW of solar plants now RBI REPORT 66.6 GOING GREEN IN THE NEWS India’s forex reserves continue to hit record high his unexpected resignation in December 2018 — said the government seemed to lose enthusiasmforthelegislationin the middle of the year he left the central bank. “Instead of buttressing and future-proofing the gains thus far, an atmosphere to go easy on the pedal ensued,” Patel wrote. “Until then, for the most part, the finance minister and I were on the same page,with frequent conversations on enhancing the landmark legislation’s operational efficiency.” The governmentwas probably of the view that the“deterrenceeffect—‘futuredefaulters beware,you may lose your business’”had been achieved,Patel said. He adds that “there were requestsforrollingbacktheFebruarycircular”and“acanardwas spread” to discredit the rules, including by incorrectly suggesting that small businesses wouldsufferdisproportionately. —BLOOMBERG New Delhi Domestic airfare cap to remain till Nov 24 PRESS TRUST OF INDIA New Delhi, July 24 THE UPPER AND lower limits ondomesticairfareshavebeen extendedtillNovember24,the aviation ministry said on Friday. It had on May 21 placed these limits tillAugust 24. “As per the prevailing situation of Covid-19, the Central government...directs that the order shall remain in force till 2359 hrs on 24th November, 2020, or until further orders,” the aviation ministry said. Domestic passenger services resumed on May 25 after nearly two months of suspension to combat the coronavirus outbreak. The aviation regulator DGCA had on May 21 issued seven bands of ticket pricing with lowerand upperfare limits.The first such band consists of flights that are of less than 40-minuteduration.Thelower and upper fare limits for the first band is `2,000 and `6,000,respectively.
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.