Top biz headlines: GDP shrinks 23.9%, Adani-GVK deal, JioFiber, and more

Here are the top business headlines on Tuesday

First economic contraction in 4 decades: India GDP shrinks 23.9% in Q1FY21

India’s economy contracted by 23.9 per cent in the April-June period, its worst performance since the quarterly measurement began in 1996, and probably the first contraction since 1980. The lockdown and suspension in economic activity due to Covid-19 was so massive that among a mix of advanced and emerging economies, India’s GDP contraction was the worst. Read More.

At Rs 8.21 trn, April-July fiscal deficit exceeds FY21 budget estimates

The stress on revenue resources due to Covid-19 continued showing on the Centre’s books. For April-July, the Centre’s fiscal deficit stood at Rs 8.21 trillion, or 103 per cent of 2020-21 budget estimates of 7.96 trillion, compared to 77.8 per cent for the same period last year, official data showed on Monday. In 2019-20, fiscal deficit had crossed 100 per cent of the full year BE by October-end. Read More.

Jio takes on rivals, rolls out new broadband plans starting at Rs 399

Reliance Jio on Monday announced new plans for JioFiber broadband starting at a monthly price of Rs 399 with no limit on data usage. According to the new plans, entertainment app Netflix is added to the bouquet of bundled apps for customers subscribing to mid-range plans. It is by far the lowest price for broadband services. Read More.

Q1 GDP data: Employment-creating sectors bear brunt of slowdown

The April-June quarter GDP data, released on Monday, showed the deepest damage in the employment-creating sectors, like construction and manufacturing. This comes at a time the Centre and the Finance Ministry are talking about green shoots in the economy. Read More.

A tale of jittery bankers, a stalled deal and GVK's Adani embrace

Unhappy with the 10-month delay in closing the deal to sell 80 per cent stake in its airport holding company to PSP of Canada, ADIA and NIIF, the GVK group decided to open talks with the Adani group in the last two weeks in order to avert a major financial crisis by August end. Read More.

Covid-19: 1,700 mid-size companies need debt restructuring, says CRISIL

Over 1,700 sub-investment grade mid-size companies (those with turnover of Rs 300-1,500 crore) will need debt restructuring to withstand the Covid-19 onslaught, said CRISIL Ratings on Monday. Read More.

Adani becomes infra juggernaut, but debt exposure remains a risk

On Friday, the SB Adani Family Trust, representing the promoters, announced that it was pledging 1.01 per cent of its equity holding in Adani Ports and SEZ Ltd to raise Rs 430 crore from Credit Suisse AG. Read More.

Ambani-Biyani deal: Future Group's footprint to shrink by 80% in revenue

Kishore Biyani, after having sold his retail and supply chain businesses to Reliance Retail, will be left with food and grocery (FMCG), and garments manufacturing, besides the insurance joint venture with Italy’s Generali. Read More.

New margin framework may aggravate the selling pressure: Brokerages

Brokerages fear that implementation of the new margin framework from Tuesday may aggravate the selling pressure, with several market participants yet to migrate to the new framework. This could lead to unwinding of client positions. Read More.

Info Edge founder wants a hat-trick after Zomato, PolicyBazaar success

It can take time — over 10 years — and patience to find your third unicorn. Armed with investments of $263 million in 34 start-ups, either directly or through his new alternative investment fund, Sanjeev Bikhchandani, founder and vice-chairman of Info Edge, who has already invested in two unicorns, is searching for his third. Read More.