India Lalcap Report May 20

India Lalcap Report May 20

The Lalcap Report is reproduced here with permission of its author Deepak N. Lalwani OBE, Chairman Lalcap Ltd. In outline the report covers:

Government measures to help struggling businesses hit by the lockdown;

The Reserve Bank of India reduction of its key policy interest rate;

Measures to assist businesses have been extended by another three months in light of extensions of the lockdown; 

 Airlines in India were forced to ground planes from March 25 but are now allowed to resume flights, but only on domestic routes. And with rules that are among the strictest in the world;  The regulations, in effect until 24 August, include full body protective gear for airline crew, temperature checks, face masks and shields for all passengers and a minimum and maximum fare band for airlines;

Indian Railways also said it would run an additional 2,600 special trains in the next 10 days to help nearly 3.5 million stranded migrant workers get to their homes; 

In mid-April India said that foreign direct investments (FDI) from countries with which it shares a land border would require prior government approval to deter “opportunistic” takeovers and acquisitions during the pandemic. India has land borders with China, Pakistan, Bangladesh, Myanmar, Nepal and Bhutan; 

New Delhi is now considering bringing in a rule to obtain “security clearance” first from India’s home ministry for new FPI registrants from China and Hong Kong; 

2020 year-to-date performance of Asia Pacific/Western Equity Markets in local currency, US$ and GB£.  Following the very sharp bear market fall in mid – to late March virtually all markets below continue to be in the red, mainly in double-digits;

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