The credit rating agency points out that the pandemic will continue to be a spoilsport for the NBFCs it reviewed as funding remains a challenge in the current market.
While gloom prevails across economies, a State Bank of India report says that the Reserve Bank of India has been relatively successful in ensuring financial stability in the market since May.
Motilal Oswal Financial Services estimates India’s fiscal deficit at ₹14.6 lakh crore in FY21, while GDP could contract by 6.5% against its earlier estimated decline of 4.7%.
Foreign portfolio investors (FPIs) have taken out ₹1,30,491 crore between January and May 2020, making it the worst period in 5 years. March witnessed the maximum monthly outflow since 2016.
The cautious easing of the lockdown in several states and the reverse migration of labour will make a return to normal economic activity a difficult task.
The extension, which takes the total day-count of the lockdown to 54, will add to the challenges that the economy was already facing before Covid-19 took the shape of a pandemic.
Both the Sensex and the Nifty 50 stage more than 14% recovery. The Sensex market capitalisation is up by nearly ₹7.63 lakh crore with 13.48% monthly growth.
The delay in stimulus announcement is disappointing and raises the probability that a stimulus, if any, might be weaker than expected, says Jefferies India.
Facebook’s $5.7-billion investment in RIL’s subsidiary will help both companies monetise their digital platforms; it will also aid in deleveraging RIL’s balance sheet, says Fitch Ratings.
