Rating actions spike as Covid-19 impacts consumer and travel-related sectors
The rise in Covid-19 cases and the 21-day lockdown announced by the government would cause large-scale disruption to businesses. Earlier on March 13, 2020, CRISIL had said in a credit alert that credit pressure on India Inc was intensifying.
India’s road sector has seen its share of twists and turns over the past decade. It has meandered from a high of build-operate-transfer (BOT) awards in 2010, to a low of land acquisition hurdles and abysmal private sector participation in 2014, only to be uplifted by the introduction of newer modes such as the hybrid annuity model (HAM) in 2016, and the highest-ever award of 7,400 km by the National Highways Authority of India (NHAI) in 2018.
Low LNG price outlook improves viability of Rs 50,000 crore city gas investments
The viability of Rs 50,000 crore capital expenditure planned in the city gas distribution (CGD) space over the next four years has improved with the price of liquefied natural gas (LNG) expected to be subdued during the period.
Non-bank unsecured loans buck trend, to grow 4x faster than overall book
Defying general lending caution, unsecured loans1 of non-banks2 are seen growing at over 25% this fiscal, because of rising propensity for personal loans and attractive risk-adjusted returns. That would be four times faster than the 6-8% growth – a decadal low – expected in overall assets under management (AUM) of non-banks.
Slack global demand, virus to cut diamond exports 20%
India’s diamond exports could shrink by a fifth to ~$19 billion by the end of fiscal 2021, from $24 billion in fiscal 2019, as the novel coronavirus (n-CoV) outbreak amplifies sluggishness in global demand.
Covid-19 has cast a long shadow over a much-anticipated mild recovery in Indian economy in fiscal 2021. Along with external factors such as weak global demand, supply disruptions, and global financial shocks, the economy is grappling with lockdown, factory shutdowns, reduced discretionary spending, and delayed capex cycle.
Analytica