NSSO data shows India's bottom 30 per cent population spend 10-12 per cent of income on food, 11 per cent on clothing and footwear, 8-9 per cent on entertainment and personal care and just 2-3 per cent on durables. For the top 5 per cent, 13-15 per cent goes to food, 14-16 per cent to clothing and footwear, 18-13 per cent to entertainment and personal care and a 44-47 per cent to durables. In FY12, top 20% of the population accounted for 47 per cent of consumption share and bottom 20% accounted for 6 per cent. These breakups can spell out which segments of the economy will take the biggest hit from the Covid-19 disruption.
MARKET CUES: Where do we stand >>>  | Nifty futures on Singapore Exchange traded some 97 points higher at 7 am (IST) in signs that Dalal Street might see a positive start. |
| After forming a 'Bearish Belt Hold' candle in Monday's session, Nifty on Tuesday faced huge selling pressure at 10,300 level for the second day in a row. The index ended up forming a small bearish candle, with a long upper wick, which confirmed weakness in momentum. |
| Asian equities slipped on Wednesday after most US stocks pared gains overnight. Australian index fell 0.4%, Japan's Nikkei lost 0.8% and South Korea's KOSPI slipped 0.3%. |
| On Wall Street, the Nasdaq rose 0.3 per cent to reach its second straight day of record high as oil prices rose. It even briefly rose above the 10,000 mark for the first time. However, the Dow fell 1.09% and the S&P 500 declined 0.78%. |
| The rupee pared initial gains to close 6 paise lower at 75.61 against the US dollar on Tuesday tracking muted domestic equities and a strengthening US currency. |
| The dollar nursed losses against most currencies on Wednesday amid speculation that US Fed will take steps to curb a recent rise in bond yields. The Australian and New Zealand dollars pulled back slightly, while the British pound rose to a three-month high. The euro logged gains for a second day. |
| Oil prices fell on Wednesday as an industry report showed a rise in crude and fuel inventories in the US. Brent crude futures fell 57 cents, or 1.4%, to $40.61 a barrel and WTI futures declined 68 cents, or 1.8%, to $38.26. |
| Gold jumped Rs 402 to Rs 47,235 per 10 gm in Delhi on Tuesday helped by a rise in the international prices of the precious metal. In global markets, the yellow metal jumped more than 1% as risk appetite took a back seat with cautious investors awaiting clarity on the state of the economy and further stimulus from the US Fed. |
| LOOK WHO'S |  |
Rush to cut share pledges… As the equity indices climbed about one-third from their March 23 lows, promoter-owners of companies listed locally were the biggest gainers. Since then, the primary owners of AU Small Finance Bank, Sun TV Network and Sun Pharma Advanced Research have reduced their pledged shares to zero. Promoters of another 14 companies have also significantly freed up shares they had offered as collateral to lenders. Sun TV promoter Kalanithi Maran revoked 13.4 million shares worth Rs 510 crore from Axis Bank and Yes Bank. Adani Group has revoked pledges shares worth Rs 496 crore of Adani Green Energy, while the Shroff family has released pledges worth Rs 451 crore in UPL.
Read More 'Forced' motor insurance goes… India's insurance regulator has withdrawn all long-term packaged third-party and own-damage policies that insured cars for three years and two-wheelers for five years, arguing that these covers were forced upon customers and raised the on-road prices of new vehicles. The decision was was made after the examination of existing long-term package covers currently on offer. Higher insurance costs were one of the reasons blamed for lower auto sales, which dived across all modes of transport much before India had shuttered its cities to prevent the spread of the coronavirus.
Read More It's raining rights offers on D-Street… Rights offers may once again vault to the centre stage of corporate financing after the overwhelming response to Reliance Industries's Rs 53,124 crore issue, making it the most preferred fundraising route for Indian companies in the aftermath of the Covid-19 crisis. In the past week, half a dozen entities including Tata Power, M&M Finance, PVR, Aditya Birla Fashion and Shriram Transport either announced or drew up plans to raise up to Rs 10,000 crore through such offers. A record amount was raised through rights issuances in FY20. Most companies are looking to reduce debt and strengthen balance sheets following the impact of Covid-19-related disruptions.
Read More Several offences reclassified in financial laws… The government is looking to reclassify several offences under financial sector laws, including the bouncing of cheques, as civil offences rather than criminal ones to improve the ease of doing business and unclog the courts. These will then be punishable only by monetary penalties, not jail time. The Department of Financial Services has sought public comments on decriminalising 39 sections in 19 Acts under its administrative purview including the Banking Regulation Act, the Reserve Bank of India Act, the Insurance Act and the Negotiable Instruments Act.
Read More | AND WHO'S |  |
Wait for Templeton money gets longer… The wait for getting back their money has got longer for investors in the six debt schemes of Franklin Templeton Mutual Fund that were shut down. The fund house has suspended the e-voting process required to start the unwinding of the schemes after the Gujarat High Court put it on hold following a petition that the asset manager's trustees did not seek unitholders' consent before scrapping them. The e-voting was scheduled to start on June 9.
Read More Consumers go EMI way for most purchases… As the lockdown eased across the country, a distinct trend of consumers preferring to purchase even low value goods on EMIs emerged with retailers, online marketplaces and banks reporting a surge in financing on credit cards. Items like smartphones, mixer-grinders, kitchen utensils, speakers and headphones, household products and shoes as well as paying bills are lately being paid in instalments. Tightening liquidity has made consumers avoid outright cash purchases due to stress in income across households, widespread salary cuts and poor sentiments due to fear of losing jobs.
Read More Life insurers take hit on biz growth… Business growth of life insurers was yet again impacted in May due to the economic slump triggered by the lockdown to combat Covid-19. New business shrunk by 25.3% year-on-year during the month, show data from IRDAI. For both April and May, the contraction was 30.7%. New business premium at the Life Insurance Corporation of India dropped 24% YoY to 10,211 crore during the month. Sequentially, however, the insurer recorded 185% growth, the data showed.
Read More Meanwhile... India Inc's hiring intentions down… Corporate India's hiring intentions for the forthcoming quarter have weakened to the lowest in at least a decade and half amid uncertainties caused by the Covid-19 pandemic, the Manpower Employment Outlook Survey found. But the hiring outlook is still the second best among 43 countries surveyed. Only 5% of Indian companies plan to hire in the July-September quarter, while 2% expect a drop in headcount.
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