Daily Financial News Analysis – 1st July’20

Table of Contents

59 Chinese apps

59 Chinese apps banned by India.
Their representatives, can appear before a government constituted committee within 48 hours
To save their apps, they have to prove that the data of Indian users is not being sent to servers in China.
Committee will conduct a detailed inquiry about datasharing practices of these Chinese apps.
Tik-Tok, Bigo Live and Likee executives will cooperate with GoI.
Question
Name India’s nodal agency for internet security
China expressed serious concern over the ban.
China: ban goes against the general trend of international trade and ecommerce
Ji Rong, a spokesperson of the Chinese embassy: “The ban will affect local employment in India”
India is one of the largest markets for Chinese apps after their home market and the US.
Stocks of Chinese companies: closed in the red RED

Soon Indian MSMEs will be protacted from new rules to tackle the issue of delayed payments.
Govt. is facing problems in making a decision because Covid-19.
Gadkari: wait for four to six months.
Samadhan portal: settled ₹40,000 crore worth of dues so far
Lot of money owed to MSMEs is stuck with central government undertakings, state governments and the private sector.

Fitch Ratings has downgraded FY22 outlook for India.
GDP growth estimate to 8%, as against 9.5% projected last month.
The agency retained the FY21 projection of India’s GDP contracting by 5% in its latest global economic outlook.
Global GDP forecast has turned stable as disruption caused by Covid eases.

Compared with April, India’s infrastructure sector contracted at a slower pace in May.
The index of eight core industries dropped 23.4% in May from a year earlier.
There was a fall of 37% in April.
Output contracted 30% in the first two months of the current financial year.
The 8 industries in the index are coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity.
These together have a 40% weight in the Index of Industrial Production (IIP).
Industrial output may also shrink at lower pace in May.
ICRA: industrial production to shrink around 35-45% in May
1. It shrank 55.5% in April.
The substantial relaxation in lockdown in June is expected to further help recovery in these sectors.

Under the 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS) backed by a Government guarantee, Public and Private sector banks have sanctioned loans worth over 1 lakh crore rupees till 26th of June.
Out of these, more than 45 thousand Crore rupees have already been disbursed.
It will help more than 30 lakh MSMEs and other businesses to restart their operations after the lockdown.
Public sector banks have sanctioned loans of over 57 thousand 525 crore rupees whereas private sector banks have sanctioned loans of over 44 thousand 335 crore rupees under ECLGS.
The top lenders under the Scheme are SBI, Bank of Baroda, PNB, Canara Bank and HDFC.
As part of the Aatma Nirbhar package, Government had announced its plans for 3 lakh Crore rupees as additional credit to MSMEs and small businesses.
Such enterprises were to be eligible to receive upto 20 per cent of their existing borrowing as additional loans at interest rates which were capped.