TVS Motor has said that “the outbreak of pandemic Coronavirus in China will lead to 10 percent low in the planned production in February”.
Further, it said “Coronavirus has led to an impact on the supply of certain components for the production of BS-VI vehicles. China is a key part of the global automotive supply chain.”
Before it said, the country’s largest two-wheeler maker Hero MotoCorp also said that the company’s production will hit by around 10 per cent during the month of February.
The company said “While the company’s direct dependency on China is limited for components, some Tier II suppliers have been impacted adversely which will lead to 10 percent drop in the planned production in February 2020. All efforts are on to normalize this at the earliest.”
KN Radhakrishnan, Director & CEO, TVS Motor Company, said, “At TVS Motor Company, we have completely transitioned to BS-VI in the month of January 2020. To minimize the impact on the production of BS-VI vehicles, we are consistently monitoring developments with those of our suppliers who are sourcing certain components from China. Parallelly, we are also exploring suppliers in other regions and are looking to localize within India. As a customer-centric organization, our endeavour is to ensure that the impact on our customers and operations is minimal.”
According to Crisil estimate, around 18 per cent of automobile component imports and nearly 30 percent of tyre imports come from China. Automotive Component Manufacturers Association of India (ACMA) says India imported around $ 4.2 billion of auto components in 2019 from China.
Crisil analyst says “But lack of even a single critical component such as printed circuit boards can hurt an OEM’s ability to manufacture vehicles. The current slowdown and adequate stock of Bharat Stage (BS)-IV vehicles serves as a relief for domestic OEMs albeit production of BSVI vehicles, to be sold effective April 1, 2020, could get disrupted if lockdown in China persists”.
Vinnie Mehta, director general, ACMA earlier said that at present the situation will not impact OEMS, but if the trend continues for the next 3 weeks or one month then the impact will be felt.
Spicejet started cargo on flights seat to take necessary during Covid-19.
SpiceJet started country’s first cargo-on-flight On Tuesday which carrying important supplies in the passenger cabin and belly space from Delhi to Chennai. The aircraft will be doing five rounds today between Delhi, Chennai, Surat, Mumbai and Delhi again, to deliver necessary in a very short period.
The airline deployed a Boeing-737 NG aircraft after getting approvals from the Directorate General of Civil Aviation (DGCA) and the Ministry of Civil Aviation. It carried 11 tonnes of vital supplies in the passenger cabin and belly space.
According to Ajay Singh, chairman and managing director of SpiceJet, “Since the lockdown began, we have carried more than 1,400 tonnes of cargo operating around 200 domestic and international cargo flights. Today, for the first time in the country, we used a passenger plane to transport cargo, where in addition to the belly space, the passenger cabin was used to safely carry essential supplies.”
He further said that “The company is working as part of the government’s ‘Lifeline Udan’ initiative and has also put its five freighters to maximum use to transport cold chain medical supplies, medicines and medical devices for various state governments, and medical and pharma companies”.
Special covers made from flame-proof material were used to cover the seats and the cargo-on-seat was fastened securely. To ensure optimum use of space, the overhead bin was also used. The aircraft flew from Delhi to Chennai and from Chennai to Surat and back to Chennai. It will also operate from Chennai to Mumbai and from Mumbai to Delhi later during the day with cargo on-board. SpiceXpress, SpiceJet’s dedicated cargo arm, has been regularly transporting surgical supplies, sanitisers, and face masks, apart from providing doorstep delivery of medicines and medical equipment in more than 15 cities across the country. The airline has transported over 4,000 Coronavirus Rapid Test Kits to Kozhikode from Mumbai.
Last month spicejet helped transport an emergency consignment of IR Thermometers to Kolkata from Hong Kong and operated a special charter flight from Delhi to Coimbatore on the government’s request carrying a Hazmat suit that would help local authorities replicate and start manufacturing locally. On March 29, SpiceJet operated a special flight between Delhi and Jodhpur to transport 136 Indians evacuated from Covid-19 hit Iran to a government quarantine facility.
The airline has also started special cargo flights to Abu Dhabi, Kuwait and other countries, taking fresh fruits and vegetables and helping Indian farmers maintain continuity of their supply chains in addition to operating dedicated services from Chennai and Vishakhapatnam to Surat and Kolkata.
Operation of Amazon and Flipkart In India is Still Disrupted
On Friday The government has said that “e-commerce companies that their operations would not be disrupted amid a nationwide lockdown to fight the coronavirus, but most are facing crippling disruptions after just three days, sources familiar with the matter. Local issues such as differing state and district level regulations are hindering operations, the four sources, who asked not to be identified, said. In some cases, for example, it has been difficult for e-commerce firms to get curfew passes for their delivery people”.
Industry executives say local authorities have not uniformly followed guidelines and stopped delivery staff and company warehouses from operating.
Most of Amazon.com Inc’s 60 plus fulfillment centers in India were shut, with the company still in talks with state authorities to swiftly reopen warehouses.
According to sources “It’s worse than one can think,” said one of the sources. A miniscule numbers of Amazon warehouses were operational in the country, citing it as a key reason for disruptions. Even when operations do begin to partially normalize amid the lockdown, it will only be in major cities”.Amazon did not immediately respond to a request for comment.The large-scale disruptions highlight the implementation woes faced in ensuring the supply of essential goods to 130 crore people during the nationwide shutdown.
India has reported 724 cases of coronavirus infection so far, and 17 deaths.Several users sought help from Amazon on Twitter about ordering essential items, and the company responded saying it was unable to deliver due to local restrictions.Amazon tweeted that “There are clear guidelines provided by Government to enable essential services, and so we are working with the relevant authorities to ensure we are able to operate”.
Sensex slows 674 points; Nifty drops low 8,100
Equity benchmark Sensex tumbled 674 points on Friday, weighed by losses in banking stocks as unabated spike in new Covid-19 cases fuelled uncertainty over the economic impact of the pandemic. After hitting a low of 27,500.79 during the day, the 30-share BSE barometer ended 674.36 points or 2.39 percent lower at 27,590.95.
The NSE Nifty shed 170 points, or 2.06 percent, to finish at 8,083.80.
Axis Bank was the top loser in the Sensex pack, cracking over 9 percent, followed by IndusInd Bank, ICICI Bank, Titan, SBI, Maruti, HDFC and Asian Paints. On the other hand, Sun Pharma, ITC, ONGC, M&M and Tech Mahindra were among the gainers.
Traders said”With fresh cases of novel coronavirus mounting by the day, concerns over a looming economic recession kept investors on the edge”.
The Asian Development Bank warned on Friday that the Covid-19 pandemic could cost the global economy USD 4.1 trillion as it ravages United States, Europe and other major economies. It also said that “India’s economic growth rate will slip to 4 per cent in the current fiscal”. According to the Health Ministry”The number of Covid-19 cases in India has crossed 2,300 while the death toll rose to 56″.
The number of confirmed coronavirus cases around the world has soared past one million and fatalities have topped 50,000 as the US reported the highest daily death toll of any country so far. Bourses in Shanghai and Hong Kong ended in the red, while those in Seoul and Tokyo closed with mild gains.
Stocks in Europe were also trading with significant losses in early deals
On the currency front, the rupee depreciated 55 paise to 76.15 against the US dollar in intra-day trade. Brent crude futures, the global oil benchmark, rallied 8.15 per cent to USD 32.36 per barrel amid hopes that Russia and Saudi Arabia will end a price war by slashing crude output.
Sensex reached over 700 points; Nifty lowers 8,400
Equity benchmark Sensex slumped over 700 points in early trade on Wednesday tracking losses in index heavyweights Reliance Industries, Kotak Bank, HDFC Bank and Infosys amid weak cues from global markets. Starting the new financial year on a negative note, the 30-share BSE barometer was trading 714.74 points or 2.43 per cent lower at 28,753.75. Similarly, the NSE Nifty fell 199 points, or 2.31 per cent, to 8,398.75.
Kotak Bank was the top loser in the Sensex pack, cracking up to 8 per cent, followed by SBI, Infosys, HDFC Bank, Tech Mahindra and UltraTech Cement.
IndusInd Bank and PowerGrid were the gainers. In the previous session, the Sensex closed the financial year 2019-20 higher by 1,028.17 points or 3.62 per cent at 29,468.49. The Nifty rose 316.65 points, or 3.82 per cent, to close at 8,597.75.However, during the fiscal, the Sensex plunged 9,204.42 points or 23.80 per cent, while the Nifty sank 3,026.15 points or 26.03 per cent.
Foreign institutional investors (FIIs) turned net sellers in the capital market, as they offloaded equity shares worth Rs 3,044.94 crore on Tuesday, according to provisional exchange data.
According to S Hariharan, Head – Sales Trading, Emkay Global Financial Services: “For the month of April, macro risk appetite driven by news flow around potential peaking of fresh COVID-19 cases would be the key driving force for foreign flows, while domestic funds continue to use the correction to increase equities allocation in dynamic asset allocation funds”.
On the global front, bourses in Hong Kong, Tokyo and Seoul were in the red, while those in Shanghai were trading on a positive note. Benchmark exchanges on Wall Street too ended with losses in overnight trade.Brent crude futures, the global oil benchmark, fell 0.76 per cent to USD 26.15 per barrel.
The number of COVID-19 cases in India has stood at around 1,400, according to health ministry log. While there are more than 1,200 active cases, over 100 have been cured. Deaths around the world linked to the pandemic crossed have 40,000.
Sensex tops 870 points to 29,300 and Nifty reaches to 200 points to 8,400 in opening session.
On Tuesday Sensex tops over 800 points in the opening session by gains in index heavyweights Reliance Industries, HDFC twins and Infosys amid a recovery in global equities. After hitting a high of 29,316.80, the 30-share BSE barometer was trading 505.20 points or 1.78 percent higher at 28,945.52.
Similarly, the NSE Nifty rose 199.85 points, or 2.41 percent, to 8,480.95. Tata Steel, HDFC, Axis Bank, M&M, Reliance Industries, ONGC, ITC, HCL Tech, and Titan rallied up to 3 percent. On the other hand, IndusInd Bank plunged up to 15 percent. Bajaj Finance, Bajaj Auto and Maruti were also among the laggards.
According to traders “despite concerns over the rising number of COVID-19 cases in the country and the economic fallout of the nationwide lockdown, investors are value-buying during each dip”.
In the last session, the 30-share BSE barometer ended 1,375.27 points or 4.61 percent lower at 28,440.32, and the broader Nifty fell 379.15 points, or 4.38 percent, to close at 8,281.10. Foreign institutional investors (FIIs) turned net sellers in the capital market, as they offloaded equity shares worth Rs 4,363.61 crore on Monday, according to provisional exchange data.
On the global front, bourses in Shanghai were trading on a positive note after China’s manufacturing sector steadily resumed production after the COVID-19 shutdown, with 98.6 percent of the major industrial firms nationwide having restarted work.
Benchmark exchanges on Wall Street rallied over 3 percent in overnight trade.
Meanwhile, the Indian rupee appreciated 10 paise to 75.48 against the US dollar in the morning trade.
Brent crude futures, the global oil benchmark, rose 2.16 percent to USD 26.99 per barrel. The number of COVID-19 cases in India has surged past 1,200, according to the health ministry log. While there are more than 1,100 active cases, nearly 100 have been cured. Deaths around the world linked to the pandemic crossed have 37,000.
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