Top headlines: Govt puts on hold DA hike, Fitch cuts India growth forecast

Business Standard brings to you the top headlines of the day

The government has put on hold the increase in dearness allowance for its 4.8 million employees and 6.5 million pensioners at 17 per cent till July 1, 2021. The Reserve Bank of India (RBI) will sell Rs 10,000 crore worth of short-term bonds, and buy an equivalent amount in long term bonds. The latest changes to the FDI came into effect from Thursday midnight. We bring to you top evets of the day that made it to the headlines

1. Covid-19 impact: Govt puts on hold DA hike for employees, pensioners

The government has put on hold the increase in dearness allowance for its 4.8 million employees and 6.5 million pensioners at 17 per cent till July 1, 2021, citing the financial crisis caused by the cororanvirus pandemic as its reason. The cabinet had a month ago approved an increase to 21 per cent. Read more here

2. Fitch Ratings sees India growth dipping to 0.8% in FY21 from estimated 4.9%

Fitch Ratings on Thursday slashed India's economic growth projections to 0.8 per cent in the current 2020-21 fiscal saying an unparalleled global recession was underway due to disruptions caused by the outbreak of coronavirus pandemic and resultant lockdowns. Read more

3. RBI to buy and sell Rs 10,000 cr in bonds to manage its balance sheet

The Reserve Bank of India (RBI) on Thursday said it will sell Rs 10,000 crore worth of short-term bonds, and buy an equivalent amount in long term bonds on Monday. This is a revenue and liquidity neutral operation, which is possibly aimed at the central bank’s balance sheet management, though the RBI did not specify a reason. Read on to know more...

4. No hostile takeover of Indian firms: New FDI guidelines come into effect

The latest changes to the Foreign Direct Investment (FDI) came into effect from Thursday midnight with all direct investment from China now requiring mandatory government approval. The Department of Economic Affairs on Wednesday issued the updated the Foreign Exchange Management (Non-debt Instruments) (FEMA) Rules, 2019 which includes the latest FDI norms. Read full story here...

5. Covid-19 impact: India crude oil production plummets 5.5% in March

India’s crude oil production droppped 6 per cent and natural gas 5 per cent in 2019-20 compared to figures last year, matching the slump caused by the coronavirus pandemic in global crude. Read more

6. Hyundai's profit slumps 44%, its lowest first-quarter level in a decade

South Korea's Hyundai Motor's first-quarter net profit slumped 44 per cent to its lowest level for the quarter in a decade as the spreading coronavirus outbreak hit demand for cars worldwide, the company said on Thursday. Read more...

7. Thanks to lockdown, aerosol levels hit 20-year low in India, finds NASA

The aerosol levels over northern India has plummeted to a 20-year-low for this time of the year, according to satellite data published by US space agency National Aeronautics and Space Administration (NASA). The US space agency's satellite sensors observed aerosol levels at a 20-year low post the countrywide lockdown, implemented to slow the spread of the novel coronavirus. Read on...