RBI’s stress test shows banks are on thin ice as virus may affect capital

Indian lenders had brought down dodgy loans from 11.6% in FY18 to just 8.5% of their book in FY20. It seems that was just a number on the sand, and all it took was a wave of the pandemic to wipe off this minor victory.

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Sensex, Nifty continue to scale back to pre-covid levels; here’s what drove stock markets this week

Domestic benchmark indices despite ending this week’s last trading session in the red gained half a percent during the course of the week with volatility coming back to haunt investors. With this, Sensex and the 50-stock Nifty are now up over 41% from their March lows. In the coming week, markets are expected to react to June quarter results of listed companies, global stock markets and not to forget the AGM of Reliance Industries. Analysts are still betting on stock-specific actions to steer the market with domestic factors not posing any grave threat in the coming weeks.

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Franklin Templeton Debt Fund Freeze: Ray of hope for investors to get back their money

The confidence of many investors got jolted when over Rs 30,000 core of their money invested in trusted debt funds of reputed mutual fund (MF) company Franklin Templeton got stuck indefinitely after the world’s leading fund house on April 23, 2020 announced that it will close six of its debt mutual funds schemes. As such funds are less riskier than the equity funds, people often park their short-term money and even emergency funds in debt MF.

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Modi’s Gold Monetisation Scheme: SBI collects thousands of kg gold

In an effort to put to productive use the gold lying idle with households and trusts, State Bank of India has mobilised 13,212 kg gold through the Gold Monetisation Scheme (GMS). SBI collected 3,973 kg of gold in the last financial year under the GMS programme, launched by the Narendra Modi-government to utilise gold lying idle with individuals as well as trusts, according to SBI’s annual report. With the collection of the last fiscal, the total gold reserves of SBI has crossed over 13,000 kg. Prime Minister Narendra Modi launched the GMS in November 2015 to cut India’s import bill and use the idle lying gold for productive purposes.

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Border clash: Chinese investors might not completely tighten purse strings for Indian startups

Money has no colour particularly for startups that survive and thrive on it irrespective of the country and region it comes from. This thought fits even better in the context of early or seed-stage startups for whom revenue is zero or negligible. They remain vulnerable to market dynamics and often dance to the tune of investors. The biggest backers for such ‘enterprising’ businesses in India have been investors largely from the US, Japan and China. Barring the first two, investments from China for Indian startups have the cat and mouse game in the backdrop played by the two Asian giants politically, militarily and economically. But would the latest skirmish between armed forces at the Galwan valley have any bearing on startup funding in India? Limited, said experts Financial Express Online spoke to.

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Shares of these ‘essential services’ have outperformed benchmark indices

The strict lockdown that India imposed might have paved the way for disruptions in businesses and supply chains but apart from that it also helped in the emergence of a new category of businesses — The Essentials. As equity markets climb up and reach significantly higher from their March lows, brokerage firm Edelweiss says that it is time again to focus hard on businesses, and here the new essential category might as well be a new set of defensive stocks. “Classic defensives are well known, but these new ‘Virus defensives’ proved to be supply hedges,” the brokerage firm said in a report. While a nation-wide lockdown was imposed in the last week of March, the government had allowed just a few businesses to run while others were asked to shut shop temporarily, to curb the spread of the coronavirus pandemic.

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Stay cautious, say market experts as Sensex sinks 550 points today

Indian stock markets fell sharply today, driven lower by a selloff in banking stocks. Investor sentiment was spooked by a spike in domestic coronavirus cases and fears of a second wave of infections in Beijing and parts of the US. The Sensex slumped over 550 points to finish at 33,228 while the broader Nifty 50 index ended down 1.6% at 9,813.

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