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Corona virus hits Japanese economy, to fall into recession after 2015

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Japan’s economy has declined severely to the extent of falling into recession for the first time in 4-1/2 years in the last quarter, official reports said on Monday.The nation’s downswing is due to the coronavirus, it has damaged the work flow of businesses.

The first-quarter GDP data has underlined the vast impact of the outbreak. It clearly stated there is a decline in exports, it is said to be the lowest since the March 2011 earthquake as global lockdowns and supply chains have disrupted the shipment of Japanese goods.

Consumption has reduced after the government requested citizens to stay home and businesses to close. This has widened the challenge for policymakers who are trying to battle a deadly pandemic.

“It’s near certainty the economy suffered an even deeper decline in the current quarter,” said Yuichi Kodama, chief economist at Meiji Yasuda Research Institute.

“Japan has entered a full-blown recession.”

Japan is the world’s third-largest economy, it contracted an annualized 3.4% in the first quarter, preliminary official gross domestic product (GDP) data showed, less than a median market forecast for a 4.6% drop.

The slump came on top of an even steeper 7.3% fall in the October-December period, with the consecutive quarters of contraction meeting the technical definition of a recession. Japan last suffered recession in the second half of 2015.

The corona virus, that emerged in China in the second half last year, has devastated the global economy as many nations went into strict lock-down to prevent further transmission of the virus. It has so far killed over 310,000 people worldwide.

On trade-reliant nations such as Japan itself, the virus has seemed to have a greater affect as it has massively disrupted the functioning of businesses. The customers have decreased their consumption hence impacting the economy further.

“Exports were also hurt by slumping inbound tourism,” which counts as a drop in non-residents’ purchases of Japanese services, he said

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Sensex falls by 1,069 Points and Nifty by 313 points

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Bombay Stock Exchange (BSE)

On Monday the Benchmark Sensex fell by 1,069 points. Which tracking huge selloffs in banking and auto stocks as the government’s fiscal stimulus package failed to revivify the confidence in domestic investors.

The 30 percent share BSE index ended by 1,068.75 points or 3.44 percentage fall at 30,028.98, while the National Stock Exchange Nifty sunk 313.60 points or 3.43 percent to 8,823.25.

On the top laggard in Sensex pack was IndusInd Bank, crunching around 10 percent, along with HDFC, Maruti Suzuki, Axis Bank, and UltraTech Cement. While, TCS, Infosys, ITC, and HCL Tech closed with profit.

Narendra Solanki, Head- Equity Research of Anand Rathi said that

Prime Minister Narendra Modi has extended the Lockdown till 31st May to stop Coronavirus transmission that’s why Traders and investors remain on edge.

He further said that the financial relief package announcement by PM Modi has also affected the market expectations on any demand-side reforms and also has massive selloff in the National market.

 

During the announcement of financial aid fund Finance minister Nirmala Sitaraman emphasize on the credit line to small business and spending very less on the Banking and Financial sector.

Yesterday in the last announcement of rules Finance minister focused on privatizing Public Sector Units in the non-strategic sector and, hang out the loan default-triggered bankruptcy filings for one year, and also gave a Rs 40,000-crore hike in allocation for the rural employment guarantee scheme for the employment of migrant workers.

According to the latest data of health ministry in India, the total number of Corona cases reached to 96,169 while fatalities rate is 3,029.

Globally Covid-19 cases reached at 47.13 lakh whereas the death rate is 3.15 lakh.

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Sensex falls to 480 points in the opening session, Nifty drops at 9,100

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Bombay Stock Exchange (BSE)

On Friday the equity benchmark Sensex falls to 480 points. The Indian share market drop at 1% was stated as weak global markets after US data was in economic damage caused by the Coronavirus and reports that a drug to treat COVID 19 showed inconclusive results.

The NSE Nifty 50 index also slumps by 1.53% to 9,166.20 by 0356 GMT, while the benchmark S&P BSE Sensex was fall by 1.59% at 31,359.96.

On Friday Asian shares and US stock fell down following reports say that Gilead Sciences Inc’s failed to help severely ill COVID-19 patients in its first clinical trial.

In April US business recorded low activity mirroring dire figures from Europe and Asia. The orders of stay at the home effect the production, supply chains, and consumer spending, according to the survey.

The top losers on the Nifty 50 index were from Private-sector lenders ICICI Bank Ltd and IndusInd Bank Ltd which glid over 4% each.

India has extended the biggest lockdown in the world India witnessed a big jump in the number of novel coronavirus cases in the country after recording 1,752 fresh cases in the last 24 hours. The total count of confirmed Covid-19 cases today has increased to 23,452, according to the latest Ministry of Health and Family Welfare data.

According to a Reuters poll, which predicted a mild and gradual recovery This Pandemic will lead the economy to suffer its worst quarter since the mid-1990s due to the lockdown in the three months ending in June.

The real estate firms Oberoi Realty Ltd falls over 4%, pushing the shares of real estate firm the Nifty Realty index over 3% lower.

The shares of Britannia rose over 3% after the company given an interim dividend of 35 rupees per share on Thursday.

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Sensex Lump to 986 points and 31,588 while Nifty deepen 270 points to 9,266

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Bombay Stock Exchange (BSE)

On Friday the equity benchmark Sensex jumps to 986 points. This Sensex led to a rise in the banking sector, energy, and IT stocks after the Reserve Bank said about sough of liquidity- boosting steps to encourage the economy during the Coronavirus Pandemic.

 

Further RBI make easy rules of bad-loan, frozen dividend payment by lender and  pushed bank to lend more by lenders and pushed bank by decreasing the reverse repo rate by 25 basis points.

 

After starting over 1,116 points higher, the 30 shares of BSE benchmark showed some early

rise to end 986.11 points or 3.22 percent higher at 31,588.72.

 

Similarly, the NSE Nifty rise 273.95 points, or 3.03 percent, at the end

9,266.75.

 

The top riser was Axis Bank increasing by 13 percent  along with ICICI Bank, Induslnd Bank, Maruti, TCS, kotak Bank and Reliance Industries . Apart from this Nestle India, HUL, Tech Mahindra and Sun Pharma decrease at the finish.

 

The Interest rate of banking, financial, auto and realty indices are stable at 6.83 higher.

 

The Reserve Bank of India (RBI) Governor Shaktikanta Das on the second time televised after the national wide lockdown began on March 25 he said to encourage the liquidity and rise bank credit.

 

The steps including lower in the reverse repo rate to Rs 50,000 crore targeted long-term repo operations and refinancing facilities for Nabard, Sidbi and NHB announced by governor.

The total number of coronavirus cases crossed 13,387 marks in India with 437 deaths and  1766 are recovered.

In Bombay, the total number of coronavirus cases reached to the more than 3,000 while Delhi marked to 1,640.

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Sensex slows 674 points; Nifty drops low 8,100

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Bombay Stock Exchange (BSE)

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.

 

 

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Sensex falls by 1,375 points; Nifty ends below 8,300

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Bombay Stock Exchange (BSE)

Equity benchmark Sensex lower by 1,375 points on Monday, tracking heavy losses in banking and auto stocks, amid an unsettling spike in Covid-19 cases. After plunging over 1,500 points during the day, the 30-share BSE barometer ended 1,375.27 points or 4.61 per cent lower at 28,440.32.

The NSE Nifty fell 379.15 points, or 4.38 per cent, to close at 8,281.10.Bajaj Finance was the top laggard in the Sensex pack, tanking nearly 12 per cent, followed by HDFC twins, Tata Steel, ICICI bank, Kotak Bank and Maruti. On the other hand, Nestle India, Tech Mahindra, HUL and Axis Bank were the top gainers.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi said “Indian markets started the week on a negative note tracking volatile global cues in Asian markets as coronavirus-fuelled volatility gripped global equities and other financial markets, with oil prices seen plunging. The selloff intensified in the second half of the session after multiple ratings agencies cut India’s growth outlook, despite the RBI’s massive actions to spur the economy”.

Fitch Solutions slashed its estimate for India’s GDP growth in the fiscal starting April 1 to 4.6 per cent due to weaker private consumption and contraction in investment amid the coronavirus outbreak, costing economies around the globe.

India Ratings and Research too revised its FY21 GDP growth forecast down to 3.6 per cent from 5.5 per cent.On the global front, the International Monetary Fund (IMF) on Friday said the world has entered a recession as bad or worse than in 2009. Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended in the red. Benchmarks in Europe were also trading on a negative note.

International oil benchmark Brent crude fell 4.47 per cent to USD 26.70 per barrel in futures trade. On the currency front, the rupee depreciated 65 paise to 75.54 against the US dollar in intra-day trade.

 

The number of Covid-19 cases climbed to 1,071 in India on Monday, while the death toll rose to 29, according to the union health ministry. Deaths around the world linked to the pandemic crossed 30,000 over the weekend.

 

 

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Sensex reaches 1,600 Points, Nifty at 8,200 Level; Axis Bank Top Gainer

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Bombay Stock Exchange (BSE)

Equity benchmark Sensex recovers over 1,600 points in the afternoon session on Wednesday led by gains in index heavyweights Reliance Industries, HDFC twins, ICICI Bank and Kotak Bank as the government took drastic measures to combat Covid-19 outbreak.

Asian banks were also trading higher as authorities world over stepped up efforts to fight the pandemic. After rallying 1,657 points, the BSE barometer was trading 1,573.02 points or 5.90 percent higher at 28,247.05.

The NSE Nifty was trading 444.30 points, or 5.70 percent, up at 8,245.35. Axis Bank was the top gainer in the Sensex pack, rallying up to 15 percent, followed by Reliance Industries, Kotak Bank, ICICI Bank, Maruti, UltraTech Cement, HDFC twins, and Bharti Airtel. On the other hand, ITC, ONGC, and L&T were the laggards.

According to traders, “in a highly volatile market, investors are weighing the economic impact of the 21-day lockdown announced last night.In an unprecedented drastic measure to curb the spread of coronavirus, Modi said the lockdown will be in force from Tuesday midnight, as he announced a central allocation of Rs 15,000 crore to strengthen the health infrastructure to tackle the disease”.

 

VK Vijayakumar, Chief Investment Strategist said at Geojit Financial Services,” enforcement of the 21-day lockdown of the nation will be a major challenge.Ensuring supplies to all households is not going to be easy, but has to be done. The temporary shock to the economy will be huge.

 

Market is now awaiting a stimulus package for the financial task force, headed by Finance Minister Nirmala Sitharaman, traders said. Bourses in Shanghai, Hong Kong, Tokyo and Seoul rallied up to 8 per cent. Stocks on Wall Street rallied up to 11 per cent in overnight trade.

 

Global oil benchmark, Brent crude futures rose 1.62 per cent to $27.59 per barrel. As per to the latest Union Health ministry update the number of coronavirus cases in India rose to 562, while the death toll due to this viral infection was revised down to nine from 10 after the second death in Delhi turned out to be negative.

 

The number of global Covid-19 infections has shot past 4,20,000. Worldwide fatalities have topped 18,000.

 

 

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Markets will work normally from Monday: Sebi reports of shutdown

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Markets will work normally from Monday: Sebi reports of shutdown

The stock markets will operate normally on Monday, said regulatory and exchange officials on Sunday. “The clarification came after reports surfaced that the market regulator Sebi and the finance ministry was considering shorter trading hours or even a complete shutdown in the wake of the coronavirus outbreak”.

Ashish Chauhan MD & CEO, BSE said “Markets will work normally tomorrow (Monday),” said a Sebi official. “All segments at BSE will operate as usual on Monday 23,”.

Nithin Kamath, founder, and CEO, Zerodha.

Said in tweeted “Surprised with people asking for closing exchanges. Firstly the business is all digital today, operations can be run online with some effort. We are working from home, the last two weeks. Yeah, there will be a drop in customer experience, but they’d understand. We track global markets, exchange closing doesn’t mean stock price will stop falling. No one knows where we will be in a few days. Even if we had to close, loan-against-share (Promoter funding), margin funding and derivative positions have to be unwound first. Otherwise, when markets open and had to factor a big move globally when we were closed, it would be a systemic risk to exchanges, clearing corp, banks, and brokers,”.

Question marks were raised over the functioning of the markets after the Maharashtra government ordered the closure of all working places in Mumbai, Pune, Pimpri Chinchwad and Nagpur in Friday. The state government, however, was quick to clarify that the directive will not be applicable to the stock market ecosystem.

On Friday Chief Minister of Maharashtra, Uddhav Thackeray tweeted “Stock exchanges, clearing corporations, depositories, stockbrokers and Sebi-registered participants operating through these institutions will be exempted,”.

Meanwhile, exchanges, including NSE, BSE, and MCX, have allowed brokers the flexibility to relocate the trading terminals to their homes to ensure business continuity.

 

 

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Sensex lowers by 581 points , Nifty below 8,300 because of coronavirus fear

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Bombay Stock Exchange (BSE)

Indian markets continued their downward slump for the fourth day on Thursday, predominantly brought on by coronavirus concerns.

According to one business website “The BSE Sensex ended 581 points lower in a highly volatile session. It oscillated in a broad range of 2,656 points between an intraday low of 26,714.46 in the first half of the session and a high of 29,370.53 in late-afternoon deals. The National Stock Exchange Nifty 50 settled 205.35 points, or 2.42%, down at 8,263.45, after dropping below the 7,900 level intra-day. Earlier in the day, Nifty hovered around 7,900 for the first time since December 2016”.

 

The biggest lower on Sensex are Bajaj Finance, which tanked over 10%, followed by Axis Bank, Maruti, Mahindra and Mahindra Limited, Tech Mahindra and ONGC. On the Nifty 50, Bharti Infratel, Coal India, Zee Entertainment, Yes Bank, and Maruti Suzuki suffered losses.

Bajaj Auto, Hero MotoCorp, ITC, Bharti Airtel, and Power Grid Corporation Limited are among the biggest gainers on Sensex in the afternoon trade. The stocks that recovered losses on the Nifty are Bajaj Auto, Bharti Airtel, ITC, Hero MotoCorp, and Power Grid Corporation. The rupee plummeted 81 paise to 75.07 against the US dollar during the day.

 

Covid-19 has an adversely impacted way of working A survey has revealed that a majority of professionals believe the outbreak has adversely impacted their way of working.  Around 63 percent of respondents affirmed that the novel coronavirus or Covid-19 pandemic has influenced their way of working and about 33 percent said they have shelved their business travel plans due to this, a TimesJobs survey titled ‘Coronavirus and its impact on jobs’ has revealed.

 

The survey was done among 1,256 working professionals from different industry verticals across the country. About 27 percent of respondents claimed that the IT sector will be the worst hit by the spread of the virus, followed by the import and export sector (stated 23 percent of respondents). While 13 percent of respondents said the healthcare sector and the aviation sector will be most impacted by the Coronavirus outbreak

 

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Covid-19 effect makes Foreign portfolio investors

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Foreign portfolio investors

Foreign portfolio investors (FPIs) have withdrawn a whopping Rs 37,976 crore on a net basis from the Indian markets in March so far amid the coronavirus pandemic triggering fears of a global recession.

Overseas investors pulled out a net sum of Rs 24,776.36 crore from equities and Rs 13,199.54 crore from the debt segment between Mar 2-13, depositories data showed.

Himanshu Srivastava, senior analyst manager research, Morningstar Investment Adviser India said “The spread of coronavirus outbreak, which has now been declared a pandemic, and continued slowdown in the global economy, has created a vicious cycle which is consuming investors worldwide” . “Global markets reeled last week after the World Health Organization (WHO) declared the coronavirus outbreak a pandemic, and expressed deep concern over the “alarming levels of inaction”.

He added “Given the ongoing scenario, foreign investors have taken a flight to safer investment options, such as dollar denominated asset classes and gold as against fixed income securities of emerging markets like India.

Himanshu said “Going forward, as coronavirus crosses boundaries and affects other countries, it may have a more serious impact on the already slowing global economy and on foreign flows into emerging markets such as India”.

Harsh Jain, co-founder and COO at Groww said “The markets have been very volatile all over the globe. Many countries are expected to announce stimulus packages and tax breaks to support various industries as they deal with the effects of this virus’ outbreak. When such announcements are made, investors’ sentiments are expected to change”.

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Sensex falls 2,919 points and Nifty below 9,600

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Bombay Stock Exchange (BSE)

The BSE Sensex fall to 2,919 points on Thursday in its biggest one-day fall in absolute terms as the coronavirus pandemic wreaked havoc on global markets.

The Sensex was 3,204.30 points during the day, the 30-share index settled 2,919.26 points or 8.18 percent lower at 32,778.14.

Likewise, the broader NSE Nifty gave up the 9,600 level, slumping 868.25 points or 8.30 percent to close at 9,590.15.

All Sensex components ended in the red. Whereas SBI was the top loser, along with ONGC, Axis Bank, ITC, Titan, Bajaj Auto, TCS, and IndusInd Bank.

Global markets reeled after the World Health Organization (WHO) termed the coronavirus outbreak as a pandemic, and expressed deep concern over the “alarming levels of inaction”.

US President Donald Trump suspended all travel from Europe, excluding the UK, to the US for the next 30 days to stop the spread of the virus.

Countries across the world are imposing travel restrictions, fuelling fears of a global economic recession, analysts said.

Narendra Solanki, Head Fundamental Research said “In line with the bearish trend in global markets, Indian stocks opened at significant lower levels as investors remained anxious about the economic impact of the coronavirus outbreak.

He further said “A selloff across sectors along with panic selling in the broader markets hurt investor sentiment”.
“Besides a selloff in global equities, massive plunge in international oil prices and depreciating rupee added to the volatility”.

The rupee depreciated 49 paise to 74.17 per US dollar (intra-day).Brent crude oil futures dropped 5.50 per cent to USD 33.82 per barrel.Elsewhere in Asia, bourses in Shanghai dropped 1.52 per cent, Hong Kong 3.66 per cent, Seoul 3.87 per cent and Tokyo cracked 4.41 per cent.Markets in Europe crashed up to 6 per cent in early trade.In overnight trade, the Dow fell into a bear market and futures pointed Thursday to another rout in New York and Europe.

Gaurav Dua, Senior Vp, Head – Capital Market Strategy & Investments, Sharekhan by BNP Paribas said “Globally, a fall of 20 per cent from the recent peak is normally considered as a bear market. However, the definition does not hold good in India. Given its high beta, Indian markets have corrected by 25-30 per cent number of times and recovered quite quickly to resume the uptrend”.

The union Health Ministry has said “The number of coronavirus patients in India has risen to 73 with 13 fresh cases, including nine from Maharashtra and one each from Delhi, Ladakh, and Uttar Pradesh as well as one foreign national”.

Covid-19 has claimed over 4,200 lives and infected more than 117,330 people across 107 countries and territories.

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