Top biz headlines: Corona warriors for markets, Jet gets 7 new EoIs, & more

Here are the top 10 headlines on Friday morning

The migrant crisis in India followed by the nationwide lockdown has sent the proposed social security law back to the drawing board. Jet Airways receives seven expressions of interest (EoIs) from several entities. Foreign Direct Investments grew by 14 per cent to a record of $49.8 billion in 2019-20. Here are the top ten business headlines on Friday morning:

Corona warriors for markets: Ambani, Adani stocks rise most since lockdown

Eight business houses have emerged as the new Corona warriors for the Indian stock market, with their group market capitalisation rising faster than the 23 per cent gain for all the companies listed on the BSE. Of these, six have outperformed substantially, which are Reliance Industries, Bharti, Adani, Sun Pharma, Vedanta, and Shiv Nadar groups, clocking 30 per cent plus gains. Read here.

Cash-strapped Jet Airways gets seven new EoIs in fresh bidding round

Jet Airways in its fourth attempt to find a suitor for its revival has reportedly received seven expressions of interest (EoIs) from several entities, along with Synergy Group’s letter of continuity. UK-based Kalrock Capital, Hyderabad-based Turbo Aviation, Alpha Airways and Canadian citizen Siva Rasiah have expressed interest in Jet and submitted EoIs, while the names of other entities could not be confirmed. Read Here.

Inbound FDI rose 14% in FY20 to $49.9 billion; service sector-top recipient

Foreign Direct Investments grew by 14 per cent to a record of $49.8 billion in 2019-20, a four-year high, according to data released by DPIIT on Thursday. The services sector — encompassing financial, banking, insurance, and outsourcing, among others — was the highest recipient of foreign investment at $7.8 billion. Read Here.

Fourth tweak in social security Bill likely to cover more workers

The migrant crisis in India followed by the nationwide lockdown has sent the proposed social security law back to the drawing board. The labour and employment ministry would propose a tweak in the Code on Social Security, 2019, to ensure more unorganised sector workers get some form of social security cover through government funding — be it under EPF or ESI scheme. Read More.

Rising bankruptcies among global retailers to hurt Indian IT firms

Crippled by the Covid-19, the US and global retail chains are increasingly filing for voluntary bankruptcies, due to which Indian IT services companies are likely to face pain. Retail is the largest vertical for the Indian IT services companies after banking, financial services and insurance, amounting to 14 per cent of their overall revenue. Read More.

Covid-19 crisis: India Inc reaches for pink slips as cash flow dries up

India Inc is now gearing up for firings in the manufacturing, airline, hospitality, and financial services sectors. Large financial companies with customer service departments and back-office operations, are likely to see employee cuts. Several have already let go of hundreds of employees. Read here.

Google eyes 5% stake in Vodafone Idea, India investments: Report

Google is reportedly in talks to buy a 5 per cent stake in Vodafone Idea, after its biggest rival, Facebook, picked up a 9.99 per cent stake in Reliance Industries’ (RIL’s) Jio Platforms for Rs 43,574 crore. Taking into account Vodafone Idea’s market valuation of Rs 16,724 crore as of Thursday, Google may end up buying the stake for Rs 836 crore. Read here.

US economy shrank at 5% annual rate in Q1, higher than initial estimate

Amid the Covid-19 pandemic, the US economy shrank at a faster pace than initially estimated in the first three months of this year as GDP fell at an annual rate of 5 per cent in the first quarter. Economists are continuing to expect a far worse outcome in the current April-June quarter. It was the biggest quarterly decline since an 8.4 per cent fall in the fourth quarter during 2008 financial crisis. Read More.

Airlines manage to fill half of flights on average; demand to fall further

As India opened its civilian domestic airspace after two months, airlines have managed to operate flights at about 50% occupancy rates, Economic Times reported. Most travellers include homebound students, young professionals, small-time businessmen. According to industry insiders, the demand for air travel will plunge once the spate of essential travel is over.

Regulators sharpen focus on Chinese FPIs

As the government and markets regulator considering including mainland China and Hong Kong in Securities and Exchange Board of India’s (Sebi’s) list of high-risk jurisdictions, foreign portfolio investors (FPI) from China might face restrictions in the country, LiveMint reported. The Department of Economic Affairs (DEA) has reportedly drafted a proposal to this effect and is currently working on its modalities.