Market Pulse

Date Heading Details
09-Apr-2020   09:17 Hrs IST Finance Ministry allows states to borrow Rs 3.20 lakh crore from market between April-December <p align="justify">In order to meet the expenses in dealing with COVID-19 pandemic, the Finance Ministry has allowed all states to borrow a cumulative Rs 3.20 lakh crore from market between April-December. The move comes amid states demand for higher funds from the Centre.&nbsp; In a letter to the RBI, the ministry said that the Centre has decided to permit states to raise open market borrowing on the basis of 50 percent the Net Borrowing Ceiling fixed for the year 2020-21 for financing the states' annual plan for the fiscal.</p><p align="justify">The letter said RBI is requested to make necessary arrangement in consultation with state government to raise the open market borrowing. It also said that further consent for raising open market borrowing during April-December will be processed after receiving complete information from states.</p><p align="justify">As per the letter, 28 states have been allowed to borrow a cumulative Rs 3,20,481 crore from markets on an ad-hoc basis for the first nine months of the current fiscal. Accordingly, West Bengal can borrow Rs 20,362 crore, Maharashtra (Rs 46,182 crore), Uttar Pradesh (Rs 29,108 crore), Karnataka (Rs 27,054 crore), Gujarat (Rs 26,112 crore) and Rajasthan (Rs 16,387 crore). <br></p>
08-Apr-2020   09:17 Hrs IST India's economy likely to grow 2% in FY21 amid Covid-19 crisis: ICRA <p align="justify">ICRA Ratings has cut India's Gross Domestic Product (GDP) forecast amid the Covid-19 crisis and expects the economy to grow at just 2% in the current financial year (FY21). It mentioned that the nationwide lockdown announced to contain the coronavirus outbreak has impacted industries and their operations have come to a standstill.</p><p align="justify">It further said that the Indian economy may witness a sharp contraction of 4.5% (de-growth) during Q4 FY20. It stated the concerns due to Covid-19 have morphed from the impact of imports from China on domestic supply chains, into a domestic and external demand shock, with social distancing and lockdowns leading to production shutdowns and job losses in some sectors.</p><p align="justify">Besides, the rating agency's vice president and sector head (corporate ratings) Shamsher Dewan said ‘amid uncertainty as to when the situation will normalize, we expect a sharp downturn in various indicators of the manufacturing and services sectors from March 2020 onwards.' This primarily includes the discretionary activities like travel, tourism and hospitality; labour intensive sectors like construction, transport and manufacturing of non-essential items; exports; and supporting sectors like electricity.<br></p>
07-Apr-2020   09:17 Hrs IST Fitch slashes India's growth forecast for FY21 to 2% from 5.1% estimated earlier
03-Apr-2020   09:16 Hrs IST GST collections fall below Rs 1 lakh crore in March
01-Apr-2020   09:19 Hrs IST Fiscal deficit touches 135.2% of budget estimate at February-end: CGA
31-Mar-2020   09:18 Hrs IST Ind-Ra cuts economic growth forecast for India to 3.6% for FY21 amid coronavirus-related worries
30-Mar-2020   09:20 Hrs IST Moody's cuts India's growth forecast to 2.5% for calendar year 2020
27-Mar-2020   09:18 Hrs IST Crisil cuts FY21 growth estimate to 3.5% for India
26-Mar-2020   09:18 Hrs IST Lockdown of 21-day to shave Rs 40000 crore daily off economy: Care Ratings
25-Mar-2020   09:16 Hrs IST Investments through P-notes in India's capital market rise to Rs 68,862 crore at end of February