Published 21:28 IST, April 12th 2020
Rahul Gandhi warns Centre of 'foreign interests taking over Indian cos' amid COVID crisis
former Congress chief Rahul Gandhi, on Sunday, claimed that Indian corporates have become weak, making them attractive targets for takeovers, amid COVID crisis
Amid the economic slowdown due to the continued lockdown in India due to rise in Coronavirus (COVID-19), former Congress chief Rahul Gandhi, on Sunday, claimed that Indian corporates have become weak, making them attractive targets for takeovers. He added that the government must not allow foreign interests to take control of any Indian companies during the ongoing crisis. While the Centre has not announced an extension of the lockdown, India's COVID-19 tally has risen to 8447 with 273 deaths.
Rahul Gandhi warns of 'foreign takeover' of Indian cos
PCOB picks up 1% of HDFC Ltd.
Earlier in the day, the People's Bank of China (PBoC) had bought a 1% stake in India's largest housing finance lenders - HDFC Ltd. This investment amounts to 1.75 crore shares in HDFC, which has reportedly been facing a receding trend in its shares since January. Reports state that the share purchase is likely to have happened between January and March. HDFC shares closed at Rs 1,701.95 on April 10, as per market reports.
HDFC's market woes
With the receding demand in real estate and the extended lockdown due to Coronavirus, HDFC has been seeing a slump in the last quarter of FY 19-20. Reports state that HDFC shares have fallen 32 percent from its 52-week high of Rs 2,499.65 on January 14, 2020. Incidentally, when the market indices - Sensex ended FY-20 losing over 1200 points and Nifty lost 340 points, HDFC's shares too tanked inspite of Life Insurance Corporation of India (LIC) increasing its holding in HDFC Ltd to 4.67% in the previous quarter.
Coronavirus hits global economy
The fear of the virus has disrupted business supply chains, while the number of positive cases has hit 17,90,233 cases and 1,09,654 deaths. Moody’s have estimated that coronavirus has increased the risk of a global recession as advanced countries United States, Japan, Germany, Italy, France, Britain, and Korea battle the virus, but the UN has claimed that India and China may be spared. Analysts have said that as China is the largest supplier of raw materials and manufacturing hub for different industries - core industries like automobiles, metal and pharmaceuticals' trade were brought to a standstill due to China closing off its borders, but now is seeing action as China picks up manufacturing. Currently, the Indian economy is at a standstill, as the nation is at a lockdown till April 14.
Updated 21:28 IST, April 12th 2020