Domestic fuel prices continue to rise, for the 12th day in a row now, as the government tries to mop up some revenue.
Join us as we follow the top business news through the day.
Sensex, Nifty open on tepid note; financial stocks drag
Another day of lukewarm opening for the stock bourses.
PTI reports: "Equity benchmark Sensex dropped over 100 points in early trade on Thursday tracking weakness in index-heavyweights ICICI Bank, HDFC Bank and TCS amid muted cues from global markets and unabated foreign fund outflows.
After opening at 33,371.52, the 30-share index turned choppy to trade 52.46 points, or 0.16 per cent, lower at 33,455.46.
Similarly, NSE Nifty slipped 13.45 points, or 0.14 per cent, to 9,867.70.
ONGC was the top laggard in the pack, shedding around 2 per cent, followed by ICICI Bank, Axis Bank, NTPC, Kotak Bank and HDFC Bank.
On the other hand, Infosys, PowerGrid, Tata Steel, Bajaj Finance and Reliance Industries were among the gainers.
In the previous session, the BSE barometer settled 97.30 points, or 0.29 per cent, lower at 33,507.92, while the broader Nifty settled 32.85 points, or 0.33 per cent, down at 9,881.15.
On a net basis, foreign institutional investors sold equities worth Rs 486.62 crore in the capital market on Wednesday, provisional exchange data showed.
According to analysts, mixed global cues combined with the latest updates on India-China tension, rising COVID-19 cases and unabated foreign fund outflows kept market mood sombre."
Insurance premium collection in March, April affected: PwC study
With India becoming one of the worst-hit countries in the COVID-19 pandemic, the insurance sector has also been impacted as reduced consumption and workforce productivity as well as a heavy financial impact are emerging as some of the major concerns for the insurance industry, according to a survey conducted by PwC.
In a study titled ‘COVID-19 Impact on the Indian Insurance industry,’ PwC said, “The two productive months for the insurance industry — March for life insurance and April for non-life corporate renewals — have both seen a significant hit and the difficulty continues in the month of May in mobilising the distribution channels.” The report said the immediate focus needs to be on the business continuity plan, employee safety and well-being and stakeholder communication, among others.
Petrol price hiked by 53 paise/litre, diesel by 64 paise; 12th straight day of increase
Looks like there's no stopping fuel prices from shooting to the sky.
PTI reports: "Petrol price on Thursday was hiked by 53 paise per litre and diesel by 64 paise a litre, the 12th straight day of increase in rates that now totals to Rs 6.55 for petrol and Rs 7.04 for diesel.
Petrol price in Delhi was hiked to Rs 77.81 per litre from Rs 77.28, while diesel rates were increased to Rs 76.43 a litre from Rs 75.79, according to a price notification of state oil marketing companies.
Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.
This is the 12th daily increase in rates in a row since oil companies on June 7 restarted revising prices in line with costs, after ending an 82-day hiatus in rate revision.
In 12 hikes, petrol price has gone up by Rs 6.55 per litre and diesel by Rs 7.04 a litre.
The freeze in rates was imposed in mid-March soon after the government hiked excise duty on petrol and diesel to shore up additional finances.
Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) instead of passing on the excise duty hikes to customers adjusted them against the fall in the retail rates that was warranted because of fall in international oil prices to two decade low.
International oil prices have since rebounded and oil firms are now adjusting retail rates in line with them."
Freeze rates, depositors tell Reserve Bank
The All-India Bank Depositors’ Association (AIBDA) has voiced concern over the growing demand for waiver of interest on loans under moratorium in the context of the lockdown.
They fear that the banks would pass on the burden of any waiver to the depositors by lowering deposit rates even further. “We are greatly perturbed about the likely ramifications of the loan interest waiver on the banking sector, and on the prudential financial discipline of the borrowers. The most severely hit would be the bank depositors, as banks would inevitably seek to cover their potential or actual loss of interest income through further cut backs in the deposit interest rates,” the association said in a statement.