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Tuesday,15-June-2021

Business

Covid-impacted economy may see gradual recovery: RBI Governor

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Shaktikanta-Das

The recovery of the Indian economy reeling from the impact of the Covid-19 pandemic will be gradual, RBI Governor Shaktikanta Das said on Wednesday.

Addressing the FICCI National Executive Committee Meeting, the central bank chief said that the country is still reeling under the impact of Covid-19 and will gradually come back on normal growth path.

He, however, said that things have considerably improved in the second quarter after adverse impact the pandemic had on economic activity in the first quarter.

“Nevertheless, high frequency indicators of agricultural activity, the purchasing managing index (PMI) for manufacturing and private estimates for unemployment point to some stabilisation of economic activity in Q2, while contractions in several sectors are also easing,” he said.

“The recovery is, however, not yet fully entrenched and moreover, in some sectors, upticks in June and July appear to be levelling off. By all indications, the recovery is likely to be gradual as efforts towards reopening of the economy are confronted with rising infections.”

According to Das, financial market conditions in India have eased significantly across segments in response to the frontloaded cuts in the policy repo rate and large system-wide as well as targeted infusion of liquidity by the RBI.

“Despite substantial increase in the borrowing programme of the government, persistently large surplus liquidity conditions have ensured non-disruptive mobilisation of resources at the lowest borrowing costs in a decade,” he elaborated.

In August 2020, the yield on 10-year G-sec benchmark surged by 35 basis points amidst concerns over inflation and further increase in supply of government papers.

Following the RBI’s announcement of special open market operations (OMOs) and other measures to restore orderly functioning of the G-sec market, bond yields have softened and traded in a narrow range in September.

“Although bank credit growth remains muted, scheduled commercial baks’ investments in commercial paper, bonds, debentures and shares of corporate bodies in this year so far (up to August 28) increased by Rs 5,615 crore as against a decline of Rs 32,245 crore during the same period of last year,” he said.

“Moreover, the benign financing conditions and the substantial narrowing of spreads have spurred a record issuance of corporate bonds of close to Rs 3.2 lakh crore during 2020-21 up to August.”

Besides, he pointed out that the immediate policy response to Covid in India has been to prioritise stabilisation of the economy and support a quick recovery.

Citing World Bank assessment, Das said that recovery globally would take a longer route as it is not fully entrenched.

Business

Sensex down 300 points; finance, auto stocks lead selloff

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Bombay-Stock-Exchange

The key Indian equity indices declined on Monday morning tracking mixed cues from the Asian market along with profit booking by traders after the indices scaled new highs last week.

The across-the-board selloff was led by auto, finance and banking stocks.

Around 9.45 a.m., Sensex was trading at 52,166.60, lower by 308.16 points or 0.59 per cent from its previous close of 52,474.76.

It opened at 52,492.34 and touched a high of 52,542.66 and a low of 51,936.31 points.

The Nifty50 on the National Stock Exchange was trading at 15,676.60, lower by 122.75 points or 0.78 per cent from its previous close.

The major losers on the Sensex so far were State Bank of India, HDFC and NTPC, while the top gainers were Infosys, Tata Steel and Tata Consultancy Services.

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Business

Petrol price goes past Rs 100 in Hyderabad

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Petrol

With the latest fuel price hike, the price of petrol in Hyderabad crossed Rs 100 per litre mark on Monday.

The oil companies on Monday hiked the prices of petrol and diesel by 29 and 30 paise per litre, respectively.

With the latest hike, the price of petrol in Hyderabad has jumped to R.100.20 while petrol of diesel also crossed Rs 95. The new retail price of diesel in Telangana capital is Rs 95.14 per litre

The price of premium petrol, the fuel with additives that is sold under different names by various petroleum companies, had crossed Rs. 100 last week.

With the hike on Monday, the price of normal petrol also crossed Rs 100 mark.

The fuel prices have been on the rise since May 4. The oil companies have hiked the prices 24 times in last 42 days. The increase has been to the tune of Rs 5.27 in price of petrol and Rs 6.25 in diesel.

Oil companies have attributed the hike to the rally in oil prices in international market.

Among metros, Mumbai now has the highest petrol price at Rs 102.58 per litre.

The prices vary from state to state due to different rate of Value Added Tax (VAT) and also due to transportation charges from the nearest refinery.

Within Telangana, the fuel prices vary from district to district. The highest price of petrol is in Adilabad at Rs 102.22 per litre while the lowest is in Warangal at Rs 99.74. Barring Warangal, the price crossed Rs 100 in all the towns.

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Fuel price hiked again; petrol nearing century mark across the country

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Petrol

Fuel prices were increased again across the country on Monday adding more misery for the common man already grappling with rising food prices amidst shrinking income.

With the rise, petrol has reached very close to hitting the century mark all across the country extending the scope of historic high prices that had already made the fuel hit and cross the Rs 100 per litre mark in certain cities and towns of Maharashtra, Madhya Pradesh, Rajasthan, Telangana, Andhra Pradesh.

On Monday, the oil marketing companies (OMCs) raised the price of petrol and diesel between 26 and 31 paise per litre across the four metros.

Accordingly, the price of petrel increased by 29 paise per litre to Rs 96.41 per litre and diesel by 30 paise per litre to Rs 87.28 per litre in Delhi.

In the city of Mumbai, where petrol prices crossed Rs 100 mark for the first time ever on May 29, the fuel price reached new high of Rs 102.58 per litre on Monday. The price of diesel also increased in the city by 31 paise per litre to reach Rs 94.70 a litre, the highest among metros.

Across the country as well petrol and diesel prices increased on Monday but its retail prices varied depending on the level of local taxes in different states.

Petrol prices in three other metros apart from Mumbai has also reached closer to Rs 100 per litre mark and OMC officials said that if international oil prices continue to firm up, this mark could also be breached in other places by month end.

With Monday’s price hike, fuel prices have now increased on 24 days and remained unchanged on 21 days since May 1. The 22 increases have taken up petrol prices by Rs 6.01 per litre in Delhi. Similarly, diesel has increased by Rs 6.55 per litre in the national capital.

With global crude prices also rising on a pick up demand and depleting inventories of world’s largest fuel guzzler – the US, retail prices of fuel in India is expected to firm up further in coming days. The benchmark Brent crude is currently close to $74 on ICE or Intercontinental Exchange.

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