The Sensex and the Nifty opened the day on a positive note after yesterday's huge losses.
Join us as we follow the top business news through the day.
Industry seeks vaccines for all age groups, expedited supply
The industry on Monday called for accelerated vaccine production and supply across the country and opening up vaccination for all age groups.
It, however, stressed that factories and shop floors should be kept open for economic reasons.
“At this juncture, the Confederation of Indian Industry (CII) calls for quick action to be taken by the Government on ‘whatever it takes’ to ramp up production, supply and distribution of vaccines,” CII president Uday Kotak said. “Strict following and enforcement of safety and hygiene protocols by all sections of society is absolutely critical,” he added.
The industry body reiterated that lockdown was not a solution in the present times and requested for maintaining stringent COVID-related protocols for public places and workplaces.
To control the rampant spread of infections, CII recommended that no meeting or gathering comprising more than 10 people be permitted for any purpose.
Vadilal eyes Rs 800 cr sales from ice creams this fiscal
Vadilal bets on the summer.
PTI reports: "The Vadilal group is eyeing over Rs 800 crore sales from ice creams in India this fiscal, expecting higher demand in the peak summer season and strengthened distribution network, a top company official said on Tuesday.
The company saw an adverse impact on its sales due to the spread of the COVID-19 pandemic and resultant lockdowns in the the country last fiscal. It, however, did not disclose the numbers for the last financial year.
It had clocked Rs 650 crore sales from ice creams in FY 2019-20. Gandhi refused to share sales recorded in the previous year.
"We are aiming over Rs 800 crore sales from ice creams in the current financial year. We applied learnings from last year, when COVID-19 impacted our sales. But we have seen good demand in the last quarter of the previous year. We have strengthened our distribution network and cold chain network," Vadilal Enterprises Brand Director Aakansha Gandhi told PTI.
Vadilal plans to increase its network of retailers from 1.5 lakh to 1.75 lakh in the ongoing fiscal year.
Gandhi said the company is also looking at Rs 350-400 crore sales from exports. "Last year, exports were at Rs 250 crore. Ice creams and frozen foods contribute equally in exports. We are aiming for Rs 350-400 crore from exports in the current year," she added.
When asked if the company is looking at entering into new categories to reduce its dependence on ice cream sales, Gandhi said: "Ice creams account for 75 per cent of our total sales in the domestic markets...Our priority for next 1-2 years will be ice creams." Vadilal, which has its manufacturing plants in Bareilly in Uttar Pradesh and Pundhara in Gujarat, plans to expand capacity by 20 per cent in the next financial year.
The company on Tuesday launched its new marketing campaign to catch attention of consumers.
The campaign raises awareness of about its premium line-up, targeting the younger generation."
Indian economy may clock double-digit growth in 2021: Moody's
A low base helps growth percentage.
PTI reports: "The second wave of COVID-19 infections presents a risk to India's growth forecast as the reimposition of measures to curb the spread of the virus will hit economic activity, but a double-digit GDP growth is likely in 2021 given the low level of activity last year, Moody's said on Tuesday.
Moody's expects that given the focus on 'micro-containment zones' to deal with the current wave of infections, as opposed to a nationwide lockdown, the impact on economic activity would be less severe than that seen in 2020.
"India's very low coronavirus death count (only about 1,70,179 deaths have been recorded as of April 12) and relatively very young population also help mitigate risks. GDP is still likely to grow in double digits in 2021 given the low level of activity in 2020," Moody's Investors Service said.
In its commentary on India, Moody's said the countermeasures to combat the second wave – some of which are due to remain in place at least until the end of April – risk weakening the economic recovery. However, the targeted nature of containment measures and rapid progress on vaccinating the population will mitigate the credit-negative impact.
In February, Moody's had bettered India's growth projection for the current fiscal year, which began on April 1, to 13.7 per cent as economic activity gathered pace. For the calendar year 2021, Moody's has projected economic growth rate at 12 per cent.
As per official estimates, the Indian economy contracted 8 per cent in 2020-21 fiscal year, which ended on March 31, 2021.
"The second wave of infections presents a risk to our growth forecast as the reimposition of virus management measures will curb economic activity and could dampen market and consumer sentiment," Moody's said.
Retail and recreational activity across India had dropped by 25 per cent as of April 7 compared with February 24, according to Google mobility data. This was mirrored in the Reserve Bank of India's March consumer confidence survey which showed a deterioration in perceptions of the economic situation and expectations of decreased spending on nonessential items, it noted.
Moody's said vaccination will be a key element in controlling the second wave of COVID-19 as the authorities balance virus management against maintaining economic activity.
India began its vaccination drive against COVID-19 in mid-January and has administered 100 million doses of the vaccine as of April 10, becoming the fastest country to reach that threshold so far.
However, a shortage of vaccines and India's nearly 1.4 billion population, which includes many people living in rural, more remote locations, could slow the progress of the vaccine rollout, it added.
As of early April, around 7 per cent of the population has been inoculated. The vaccination drive was expanded to all citizens aged 45 years and above, which is about 25 per cent of the population– from April 1.
Workplace vaccination centres were also launched on April 11, through which the government expects to facilitate inoculation among workers, while minimizing risk.
"India has prioritized domestic vaccine distribution, delaying exports, amid the resurgence in coronavirus infections," Moody's said.
The government also placed a temporary prohibition on the export of remdesivir, which is used in the treatment of coronavirus patients.
India has been experiencing a second wave of coronavirus infections since March 2021.
"Daily new reported cases for the month totalled 1.1 million, jumping from the 0.4 million cases reported in February, which was the lowest since the country's 2.6 million peak in September 2020 during the first wave," Moody's said.
Maharashtra, the epicentre of the second surge, accounted for close to 50 per cent of the active caseload as of April 12. Besides, Uttar Pradesh, Chhattisgarh, Delhi and Karnataka have reported a sharp rise in daily cases."
India expects tax collection growth to continue despite surge in COVID-19 cases
Centre sees no fiscal impact due to the second coronavirus wave.
Reuters reports: "The growth in India's tax collections will continue despite concerns that economic activity could fall because of a second wave of COVID-19 infections this month, a finance ministry official said on Tuesday.
Some business leaders have expressed concerns over the lockdowns by many states after a surge in infections, fearing that it could hit consumer demand and sales as well as tax collections.
India's indirect tax receipts, mainly comprising customs and nationwide goods and services tax, in the financial year ending on March 31 increased more than 12% on year to 10.71 trillion rupees ($142 billion), M. Ajit Kumar, chairman of the Central Board of Indirect Taxes and Customs at the ministry told a virtual news briefing.
"This momentum is likely to continue in the coming year," he said, while ruling out much impact of the second wave of COVID infections. "We may do better than what we had achieved last April."
Federal net tax receipts, comprising corporate and individual taxes, have also risen to 9.45 trillion rupees for the 2020/21 fiscal year, surpassing a revised target.
Most economic sectors have bounced back after a difficult phase, Kumar said, adding metals, white goods, automobiles, cement, chemicals, electronics had shown growth.
"This is the sign of green shoots in the economy."
However, Devendra Pant, chief economist at India Ratings, pointed to an increase in tax receipts for gasoline and diesel, after fuel taxes were raised last year, as the main driver for the overall gain in tax collections.
Goods and services tax receipts were down 8% in the 2020/21 fiscal year compared to the previous period because of a reduction in economic activities after the COVID-19 outbreak, the Central Board said.
India reported 161,736 new coronavirus infections on Tuesday, the most globally, for a total of 13.69 million cases.
India's economy is projected to grow at around 11% in the financial year that started on April 1, after an estimated contraction of about 8% in the previous period."
Indirect tax revenue up 12% at Rs 10.71 lakh crore in FY21, exceeds RE
Goods news on the fiscal side for the Centre.
PTI reports: "The net indirect tax collections in 2020-21 grew 12.3 per cent to Rs 10.71 lakh crore as compared to the previous fiscal year, thereby exceeding the target set in revised estimates, the finance ministry said on Tuesday.
The mop-up through indirect taxes, which include GST, Customs and excise duties, was Rs 9.54 lakh crore in 2019-20. In the Revised Estimates (RE) for 2020-21, the target was set at Rs 9.89 lakh crore.
In 2020-21, the net GST collection of the Centre stood at Rs 5.48 lakh crore, while Customs mop-up was Rs 1.32 lakh crore.
The net tax collections on account of central excise and Service Tax (arrears) during 2020-21 stood at Rs 3.91 lakh crore as compared to Rs 2.45 lakh crore in 2019-20, thereby registering a growth of 59.2 per cent, the ministry said in a statement.
"The provisional figures for indirect tax collections (GST and non-GST) for Financial Year 2020-21 show that net revenue collections are at Rs 10.71 lakh crore as compared to Rs 9.54 lakh crore for Financial Year 2019-20, thereby registering a growth of 12.3 per cent," it said.
Net indirect tax collection for 2020-21 shows that 108.2 per cent of the RE of indirect taxes for the last financial year has been achieved.
Net tax collections on account of GST of the Centre (Central GST+ Integrated GST+ Compensation Cess) in 2020-21 is Rs 5.48 lakh crore as compared to Rs 5.99 lakh crore in the previous financial year.
RE of net GST collection including CGST and Compensation Cess for 2020-21 was Rs 5.15 lakh crore.
"The actual net GST collections is 106 per cent of total targeted collection (as per RE), though these are 8 per cent lower than the last FY's (2019-20) collection," the ministry added.
GST collections were severely affected in the first half of 2020-21 on account of COVID-19. However, in the second half, GST collections registered a good growth and the mop-up exceeded Rs 1 lakh crore in each of the last six months.
March saw an all-time high of GST collection at Rs 1.24 lakh crore.
"Several measures taken by the central government helped in improving compliance in GST," the ministry added."
DCGI nod paves way for Sputnik V vaccine import: Dr. Reddy’s
The emergency use authorisation from the Drugs Controller General of India (DCGI) for Sputnik V paves the way for import and use of the Russian COVID-19 vaccine in the inoculation programme in the country.
Though on the cards, the timing of EUA assumes significance in the context of reports that stocks of the two approved vaccines are fast running out in many locations across India, amid more people turning eligible and evincing interest in getting the jab. Several State governments had in recent days also appealed to the Centre to replenish the vaccine supplies.
Sputnik V, developed by Russia’s Gamaleya National Research Institute of Epidemiology and Microbiology, will join Covishield and the indigenous Covaxin that were approved and used since India launched what arguably is one of the largest inoculation programmes globally in January. Within weeks of Sputnik V becoming the first COVID-19 vaccine to be registered globally, by Russia in August, the Russian Direct Investment Fund announced a partnership with Dr. Reddy’s Laboratories for clinical trials as well as distribution of the first 100 million doses in India.
India's second wave of coronavirus poses credit-negative threat - Moody's
A dim assessment for the Centre's credit position.
Reuters reports: "A second wave of coronavirus infections in India and new restrictions imposed to contain the surge pose a credit-negative threat and risks weakening the country's economic recovery, Moody's Investors Service said.
"The (second wave) presents a risk to our growth forecast as the virus management measures will curb economic activity and could dampen market and consumer sentiment," the agency's analysts said in a note dated Monday.
India reported 161,736 new coronavirus infections on Tuesday, hitting the world's highest daily tally once again, after overtaking Brazil as the second-most affected country.
Officials in the worst-hit state of Maharashtra, home to the financial capital of Mumbai, said they were considering a broader lockdown this week after large closures at the weekend.
However, the targeted nature of containment measures instead of a nationwide lockdown and rapid progress on vaccinating the population will mitigate the credit-negative impact, Moody's said.
India's gross domestic product is still likely to grow in the double digits in 2021 given the low level of activity in 2020, Moody's said.
Meanwhile, Barclays said in a note on Monday that India's accelerated vaccination drive may limit the economic disruption caused by a resurgence in COVID-19 cases.
Moody's also echoed concerns raised by Barclays that a shortage of vaccines and India's population of nearly 1.4 billion could slow progress of the vaccine rollout.
India on Monday approved the use of Russian Sputnik V COVID-19 vaccine and has so far used two vaccines, one developed by AstraZeneca and Oxford University, and the other by domestic firm Bharat Biotech.
Some states, including Maharashtra and Odisha, have complained of a scarcity of vaccines during the second wave that has forced some centres to turn away people."
Inox Leisure commences operations at new multiplex in Bangalore
Business expansion amid the pandemic.
PTI reports: "Multiplex operator Inox Leisure on Tuesday said it has commenced commercial operations at a new multiplex in Bangalore in Karnataka, taking its total count to 153.
The company has commenced the commercial operations of a multiplex cinema theatre taken on lease basis, located in Bangalore with effect from April, 2021, Inox Leisure Ltd said in a regulatory filing.
The said multiplex cinema theatre has 5 screens and 694 seats. Inox is now present in 69 cities with 153 multiplexes, 648 screens and a total seating capacity of 1,47,436 seats across India.
"The revival process of the cinema industry had begun, and the recent curbs are much like a speed-breaker in the journey, which we shall surpass soon in a month's time.
“Performances of movies like Roohi and Godzilla Vs Kong showed us that audiences are willing to turn up in big numbers for new and good quality content, even after an elongated lockdown which we saw last year," Alok Tandon, CEO of Inox Leisure Ltd, has told PTI last week.
The multiplex industry has been one of the worst impacted due to the coronavirus pandemic."
TCS shares decline over 4% after Q4 earnings
Another poor day for TCS investors.
PTI reports: "Shares of Tata Consultancy Services declined over 4 per cent in morning trade on Tuesday as the company's March quarter earnings failed to cheer investors.
The stock tumbled 4.36 per cent to Rs 3,100.05 on the BSE.
At the NSE, it dipped 4.51 per cent to Rs 3,100.
The country's largest tech exporter TCS on Monday reported a 14.9 per cent jump in its consolidated net profit for the March quarter to Rs 9,246 crore on higher profit margins and revenue growth.
It posted a marginal increase in reported post-tax profit at Rs 32,430 crore for FY21, despite a 4.6 per cent jump in revenue to Rs 1.64 lakh crore in the last fiscal.
The company, a cash-cow for the over USD 100 billion Tata Group, said it is optimistic from a demand perspective and is targeting to grow the topline in double-digits in the next few years.
TCS chief executive and managing director Rajesh Gopinathan on an analyst call said that FY22 will be an "aberration" from a revenue growth perspective, hinting at the low base throwing up a higher growth number.
Its overall revenues in Q4 FY21 stood at Rs 43,705 crore, 9.4 per cent higher when compared to the year-ago quarter's 39,946 crore, and the operating profit margin widened by 0.2 per cent to 26.8 per cent."
Indian shares rebound from virus-led slump; banks, metals jump
An update on the stock markets.
PTI reports: "Indian shares rebounded on Tuesday after a bruising coronavirus-led tumble in the previous session, as beaten-down financial stocks gained and metal stocks benefited from a jump in commodity prices.
A severe second wave of the novel coronavirus in India has threatened to disrupt the country's nascent economic recovery and dragged its main stock indexes from record highs hit in February.
Still, investors are looking ahead to corporate earnings that began on Monday with software services major TCS reporting a rise in March-quarter profit.
The NSE Nifty 50 index was up 0.55% at 14,388.15 by 0500 GMT, while the S&P BSE Sensex was 0.5% higher at 48,123.34. Each index fell more than 3% on Monday, as the hardest-hit, economically important state of Maharashtra contemplated a lockdown.
India reported more than 160,000 new cases on Tuesday, although the figure was slightly lower from Monday. Maharashtra, home to financial hub Mumbai, also saw a downtick.
"The market is feeling that a lockdown might just be avoided, especially as cases are slightly slowing down in Maharashtra and Mumbai," said A.K. Prabhakar, head of research at IDBI Capital in Mumbai.
State-run banks gained 2.7% and were among the top sectoral gainers. The index had dropped 9% in the previous session.
Metal stocks advanced 2.8% after benchmark iron ore prices surged on falling supplies from major miners and strong demand.
Indian regulatory approval for Russia's Sputnik V COVID-19 vaccine sent shares in local partner Dr Reddy's Labs up as much as 3%, but it reversed course and was last down 3.6%. Its pharmaceutical peers, many of which sell COVID-19 medication, also fell after strong gains in the last few days.
IT services stocks fell 1.5%. Heavyweight TCS fell 3.6% as investors locked in gains from the stock's 10% jump this year."
Retail inflation quickens to 5.52%
India’s industrial output fell for the second successive month in February 2021, contracting 3.6% year on year, even as retail inflation quickened to a four-month high of 5.52% in March, as per data released by the National Statistical Office on Monday.
Electricity was the only sector to register positive growth of a meagre 0.1%, while manufacturing output shrank 3.7% and mining slipped 5.5%, as per the Index of Industrial Production (IIP).
The IIP had contracted 0.87% in January, as per revised data, compared to a 1.6% dip estimated earlier. Final data for November 2020 was also revised upwards, with industrial output in the month shrinking 1.6% compared to a 1.9% dip estimated earlier.
Indian shares rise after sharp virus-led decline; drug firms jump
A bounce-back after yesterday's steep fall.
Reuters reports: "Indian shares rose on Tuesday after a bruising coronavirus-led decline in the last session, as beaten-down banking stocks gained and drug companies climbed due to a vaccine approval.
The NSE Nifty 50 index was up 0.36% at 14,363.20, while the S&P BSE Sensex was 0.35% higher at 48,052.45. Each index fell more than 3% on Monday, making it their second worst day in 2021.
Indian regulatory approval for Russia's Sputnik V COVID-19 vaccine sent shares in local partner Dr Reddy's Labs up as much as 3%. Cipla and Sun Pharma, which sell COVID-19 medication, continued to gain amid a surge in domestic infections.
State-run banks gained 2.4% and were among the top sectoral gainers. The index had dropped 9% in the previous session.
IT services consultancy TCS fell more than 3% after its March-quarter profit missed analysts' estimates.
Meanwhile, India's retail inflation accelerated to a four-month high in March on higher food and transport costs, data showed on Monday."
Adani Ports removed from S&P index due to links with Myanmar military
S&P Dow Jones Indices said it has removed India’s Adani Ports and Special Economic Zone Ltd. from its sustainability index due to the firm’s business ties with Myanmar’s military which is accused of human rights abuses after a coup this year.
India’s largest private multi-port operator is building a $290 million port in Yangon on land leased from the military-backed Myanmar Economic Corporation (MEC).
It will be removed from the index prior to the open on Thursday, April 15, it said in a statement on Tuesday.
More than 700 people have been killed since a February 1 military coup that ousted an elected government led by Aung San Suu Kyi.
