US Fed Cuts Rate, RBI Ready to Take Action
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WEDNESDAY, 4 MARCH 2020 16 pages in 1 section www.business-standard.com MUMBAI (CITY) ~9.00 VOLUME XXIV NUMBER 143 THE MARKETS ON TUESDAY Chg# Sensex 38,623.7 479.7 Nifty 11,303.3 170.5 BACK PAGE P14 COMPANIES P2 Nifty futures* 11,294.8 8.5 Dollar ~73.3 ~72.7** Euro ~81.4 ~80.7** WILL GIVE SOCIAL MEDIAACCOUNTS INDIA WPP’S FIFTH-LARGEST Brent crude ($/bbl)## 52.8## 52.7** Gold (10 gm)### ~42,276.0 ~119.0 TO WOMEN WHO INSPIRE US: PM MARKET: CEO MARK READ *(March) Discount on Nifty Spot; **Previous close; # Over previous close; ## At 9 pm IST; ### Market rate exclusive of VAT; Source: IBJA PUBLISHED SIMULTANEOUSLY FROM AHMEDABAD, BENGALURU, BHUBANESWAR, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI (ALSO PRINTED IN BHOPAL), NEW DELHI AND PUNE A B PANDEY NAMED BUSINESS STANDARD FINANCE SECRETARY US Fed cuts rate, RBI SOCIAL EXCELLENCE AWARDS 2019 Revenue Secretary Ajay Bhushan Pandey has been appointed finance secretary following the retirement of Financial Services Secretary Rajiv Kumar. An IAS officer of the Maharashtra ready to take action cadre with 35 years of experience in state and Central 50 bps reduction comes amid virus scare; governments, Pandey Das suggests coordinated policy action is taking over as finance secretary at a time when SUBRATA PANDA is the first time in over 11 years that Business Standard Business Standard Business Standard economic growth has Mumbai, 3 March the Fed has cut policy rates by 50 bps ILLUSTRATI0N: AJAY MOHANTY been on a or more. The last time was in Social Entrepreneur Socially Aware Corporate Social Enterprise downward n the wake of volatility in the December 2008, when the rates were M R MADHAVAN L&T FINANCE HOLDINGS ST JUDE INDIA trajectory. financial markets due to COVID- lowered by 75 bps. In the past 12 President, PRS Legislative Dinanath Dubhashi, CHILDCARE CENTRES 19 (novel coronavirus), the instances when rates were either hiked Research MD & CEO Nihal Kaviratne, Founder I Reserve Bank of India (RBI) on or cut, the extent of change was 25 bps. RInfra defaults on Tuesday said it was ready to ensure “In the light of these risks and in that the markets ran well and confi- support of achieving its maximum loan repayments dence was maintained. It is monitoring employment and price stability goals, Anil Ambani-controlled Reliance Infrastructure global and domestic developments. the Federal Open Market Committee defaulted on payment of dues (interest and RBI Governor Shaktikanta Das, in decided today to lower the target principal) to lenders between January 23 and an interview to Bloomberg on range for the federal funds rate by ½ February 1, the company informed the BSE. The Tuesday, said there percentage point,” the Fed said in a defaults on principal include ~20.15 crore of YES was a strong reason statement. RBI Governor Shaktikanta Das. The Bank and ~1.05 crore of SREI Equipment for coordinated pol- The Dow Jones index of the US RBI said spillovers to financial Finance. RInfra also failed to pay interest dues icy action. And the was, however, down 310.41, or 1.16 per markets in India had largely been of ~30.12 crore to YES Bank, ~36 lakh to J&K option before the cent, as of 11:20 pm. contained Bank, and 31 lakh to SREI. RBI includes a rate The Fed’s move came just after the CORONAVIRUS cut and supporting G7 central bankers issued a statement ministers and central bank governors OUTBREAK the market through that they would use all policy tools to said they were ready to cooperate fur- ECONOMY & PUBLIC AFFAIRS P5 liquidity measures, achieve strong sustainable growth and ther on timely and effective measures. YES Bank approaches building confidence, safeguard against downside risks. In a statement issued on Tuesday, and other instruments to deal with As an indication of increasing the RBI said: “Globally, financial mar- domestic MFs for funds emerging challenges. coordinated action amid global uncer- kets have been experiencing consid- Private sector lender YES Bank has Also, in a major step to arrest the tainties, the G7 finance and central erable volatility, with the spread of approached Indian asset management economic fallout of coronavirus, the bank chiefs held a meeting to find coronavirus triggering risk-off senti- firms (mutual funds) for raising fresh equity Federal Reserve cut its benchmark pol- ways to counter the impact of COVID- ments and flights to safe haven.” MEET THE JURY: (From left) GiveIndia Director & CEO Atul Satija, Bain Capital worth $300-500 million amid a raft of rating icy rates by 50 basis points (bps). This 19 on the global economy. G7 finance Turn to Page 13 > Private Equity Chairman Amit Chandra, Tata Institute of Social Sciences Chairman downgrades and increasing stress on its loan S Ramadorai (chairman of the jury), Pratham Co-founder Farida Lambay, and Indian book. If the bank is able to raise funds in this School of Public Policy Founder-Director Luis Miranda PHOTO: KAMLESH PEDNEKAR round, it would give some breathing space. Export of 13 bulk COMPANIES P2 drugs restricted Five-member jury picks NCLT approves NBCC’s In the wake of the COVID-19 outbreak and supply plan for Jaypee Infra disruptions from China,India on top three in social sector The National Company Law Tribunal (NCLT) Tuesday “restricted” approved the resolution plan of National exports of 13 active BS REPORTER who were felled as much by the disease as Buildings Construction Company for Jaypee pharmaceutical Mumbai, 3 March by the lack of care and nutrition needed for Infratech with some tweaks. The NCLT said the ingredients (APIs) recuperation. And thus came about the bank guarantee of ~750 crore, submitted by and their “When my wife, Shyama, and I returned to philanthropic venture that has won the Jaiprakash Associates in the Supreme Court, formulations to ensure India after living overseas for 22 years, we 2019 Business Standard award for Social would be treated as part of the plan. that there was no shortage of key were looking to bridge the need gap in Enterprise. drugs in the domestic market, health care for children,” Nihal Kaviratne, St Jude India was chosen by a five- the Directorate General of Foreign founder of St Jude India ChildCare member jury, chaired by Tata Institute of COMPANIES P3 > An Indian woman who recently returned from the United States being Trade (DGFT) said. 4 Centres, said, looking back on the years Social Sciences Chairman S Ramadorai. that gave rise to his chain of centres for The other winners are M R Madhavan, Arcelor joint venture examined by doctors in Hyderabad on Tuesday PHOTO:PTI cancer-affected children from rural India. founder of PRS Legislative Research, as the buys Bhander plant After an exhausting run of non- Social Entrepreneur of the Year, and L&T ArcelorMittal Nippon Steel India is getting Markets rebound governmental organisations and Finance Holdings as the Socially Aware closer to securing ancillary units that were PM takes stock, visa after 7-day slide hospitals, and long deliberations with Corporate of the Year. All the winners beat not part of the Essar Steel acquisition. friends and family, the Kaviratnes found several strong contenders. Madhavan was On Tuesday, it announced that it had The equity markets snapped themselves staring at a thick bunch of honoured for doing what every democracy completed the acquisition of Bhander curbs on 4 countries their seven-day losing streak — intractable problems, but what stood out needs, helping build an aware and Power Plant in Gujarat from Edelweiss Asset the worst in five years — after the was the sheer magnitude and corrosive informed political class and electorate, Reconstruction Company. AGENCIES March 3 to the nationals of Italy, Iran, central banks pledged impact that cancer had on the lives of and laying the framework for a strong New Delhi, 3 March South Korea, and Japan who have not SENSEX to repair the economic patients and families. A tragedy made Parliament and state legislatures. yet entered India. damage due to the doubly deadly for children from rural areas Turn to Page 5 > BACK PAGE P14 With India reporting at least six con- The advisory also suspended visas Chg (pts) virus. The Sensex rose UN rights body moves firmed cases of coronavirus, Prime on arrival issued on or before March 3 480 480 points to end at Minister Narendra Modi on Tuesday to Japanese and South Korean nation- 38,624, while Nifty SC over citizenship law reviewed the country’s preparedness als who have not yet entered India. gained 170.6 points. 10 > SBI BOARD ACCEPTS The United Nations High Commissioner for to deal with the virus, while the Union Those requiring to travel to India due DoT to issue Human Rights on Tuesday sought to file a health ministry issued a travel advi- to compelling reasons may seek fresh petition in the Supreme Court against the sory suspending all regular and e-visas visa from nearest Indian RESOLUTION PLAN citizenship amendment law. External Affairs granted on or before March 3 to embassy/consulate, said the advisory. Rupee falls below notices as AGR Ministry Spokesperson Raveesh Kumar said nationals of four countries. Hotels and the authorities at FOR SALE OF RCOM the Citizenship Amendment Act (CAA) was an “Had an extensive review regard- tourist sites in Agra have been told to 73 against dollar State Bank of India’s (SBI’s) board has internal matter of India. ing preparedness on the COVID-19 inform the office of the chief medical accepted the resolution plan for sale of novel coronavirus. Different min- officer as soon as visitors from Italy, The rupee fell again on Tuesday, Reliance Communications (RCom) and receipts add up istries and states are working togeth- Iran, or China arrive so that they can crossing the 73-level to close at its subsidiaries Reliance Telecom and Uber sold Uber Eats India er, from screening people arriving in be screened for coronavirus infection, 73.30 a dollar, as virus-positive Reliance Infratel.