CABINET APPROVES STIMULUS PACKAGE FOR MSMEs, HIKES MSP FOR KHARIF CROPS

In a bid to boost the fledgling MSMEs, which has been hit the hardest due to

the Covid-19 lockdown, the Union Cabinet on Monday approved an infusion of

Rs 20,000 crore into the sector besides announcing a slew of measures to

help alleviate the distress in the farm sector.

Addressing a media briefing, Union Minister Nitin Gadkari said the Cabinet

had approved modalities and road map for implementing two packages for

MSMEs. "This includes a Rs 20,000 crore package for distressed MSMEs, which

will benefit 2 lakh stressed MSMEs and Rs 50,000 crore equity infusion

through Fund of Funds," Gadkari said.

This comes on the back of collateral-free loans for MSMEs worth Rs 3 lakh

crore that was announced by Finance Minister Nirmala Sitharaman as part of

the Atmanirbhar Bharat Abhiyan economic package.

Meanwhile, the government further amended the definition of MSME. Turnover

limit for medium enterprises has been revised upward to Rs 250 crore (from

Rs 100 crore as announced earlier).

In a move that will help farmers, the Centre increased minimum support

prices (MSP) for 14 kharif crops by 50-83 per cent. The government also

hiked MSP for paddy by Rs 53 per quintal to Rs 1,868 per quintal for the

2020-21 crop year while the MSP for cotton has been increased by Rs 260 to

Rs 5,515 per quintal. The rates for oilseeds, pulses and cereals were also

hiked substantially.

The announcement comes hours after Prime Minister Narendra Modi chaired a

meeting of the Union Cabinet on Monday as the nation entered the 'Unlock 1'

phase following a two-month strict coronavirus lockdown. This was the first

meeting of the Cabinet after the ruling NDA government completed the first

year of its second term in office.

POLLS TO 18 RAJYA SABHA SEATS TO BE HELD ON JUNE 19

Elections to 18 Rajya Sabha seats, postponed due to the coronavirus outbreak

and the ensuing lockdown, will be held on June 19, the Election Commission

announced Monday.

The counting of votes will be held on the evening of June 19 itself, the

Commission said in a statement.

Out of these 18 seats, four are from Andhra Pradesh and Gujarat, two from

Jharkhand, three each from Madhya Pradesh and Rajasthan and one each from

Manipur and Meghalaya.

The polls were originally scheduled to be held on March 26, but on March 24,

the Election Commission announced their deferment.

SITUATION AT BORDER WITH INDIA 'STABLE': CHINA

China, on Monday, said the overall situation at the border with India was

"stable and controllable", and both the countries have "unimpeded"

communication channels to resolve the issues through dialogue and

consultations.

The comments by Foreign Ministry spokesman Zhao Lijian came in the backdrop

of the continuing standoff between the militaries of India and China at the

Line of Actual Control (LAC).

The spokesman was responding to a question on Defence Minister Rajnath

Singh's remarks that India would not let its "pride be hurt" in its latest

border flare-up with China but is determined to settle the dispute through

talks between the giant neighbours.

Responding to the Indian Defence Minister's comments, Zhao said: "China has

been implementing the consensus between the two countries' leaders. We have

been committed to upholding our national sovereignty, security as well as

stability along the border."

Meanwhile, in the first comments from Capitol Hill on the ongoing tension

along the India-China border, a top US Congressman, Eliot L Engel - who

heads the powerful House panel on Foreign affairs - has expressed

"concern", called China a "bully", and "strongly" urged China to "respect

norms and use diplomacy" to resolve its border questions with India.

Last week, on May 29, Trump had claimed that he spoke to PM Modi about the

India-China border, but sources in New Delhi said there has been "no recent

contact" between the two leaders and the last conversation took place almost

two months ago, on April 4. Trump had claimed that he had spoken to Modi,

who was "not in a good mood" about what's going on with China.

MOODY'S RATINGS DOWNGRADE INDIA

On Monday, Moody's Investors Service downgraded the Government of India's

foreign-currency and local-currency long-term issuer ratings to "Baa3" from

"Baa2". It stated that the outlook remained "negative".

The latest downgrade reduces India to the lowest investment grade of ratings

and brings Moody's - which is historically the most optimistic about India -

ratings for the country in line with the other two main rating agencies in

the world - Standard & Poor's and Fitch.

There are four main reasons why Moody's has taken the decision.

1. Weak implementation of economic reforms since 2017

2. Relatively low economic growth over a sustained period

3. A significant deterioration in the fiscal position of governments

(central and state)

4. And the rising stress in India's financial sector

In November last year, Moody's changed the outlook on India's Baa2 rating to

"negative" from "stable" precisely because these risks were increasing.

Since many of the apprehensions that it had in November 2019 have come

through, Moody's has downgraded the rating to "Baa3" from "Baa2", while

maintaining the negative outlook.

Moody's was categorical that while this downgrade is taking place "in the

context of the Coronavirus pandemic, it was not driven by the impact of the

pandemic". According to Moody's "the pandemic amplifies vulnerabilities in

India's credit profile that were present and building prior to the shock,

and which motivated the assignment of a negative outlook last year".

COVID-19 DASHBOARD - (Nos. IN INDIA / Nos. WORLDWIDE)

(Indian data from covid19india / and World Data from

worldometers.info/coronavirus/ )

Total Cases 1,98,359 (+7,748) / 63,66,197 (+1,03,133)

Total Deaths 5,608 (+200) / 3,77,437 (+3,579)

Total Recovered 95,754 (+3,899) / 29,03,605 (+57,082)

Active Cases 96,997 (+3,649) / 30,85,155 (+42,472)

Serious / Critical Cases - N.A. / 53,403 (-6)

Top impacted nations so far: (And some of India's Neighbours)

Country, Total Cases / Total Deaths / Recovered Cases / Active

Cases

1 USA 18,59,323 / 1,06,925 /

6,15,416 / 11,36,982

2 Brazil 5,29,405 / 30,046 /

2,11,080 / 2,88,279

3 Russia 4,14,878 / 4,855 /

1,75,877 / 2,34,146

4 Spain 2,86,718 / 27,127 /

1,96,958 / 62,633

5 UK 2,76,332 / 39,045 / N/A

/ N/A

6 Italy 2,33,197 / 33,475 /

1,58,355 / 41,367

7 India 1,98,370 / 5,608 /

95,754 / 97,008

8 France 1,89,220 / 28,833 / 68,440

/ 91,947

9 Germany 1,83,765 / 8,618 /

1,65,900 / 9,247

10 Peru 1,70,039 / 4,634 /

68,507 / 96,898

11 Turkey 1,64,769 / 4,563 /

1,28,947 / 31,259

18 Pakistan 72,460 / 1,543 / 26,083

/ 44,834

21 Bangladesh 49,534 / 672 / 10,597

/ 38,265

100 Sri Lanka 1,643 / 11 / 811

/ 821

Top 18 impacted Indian States so far: (Total No. of Confirmed case / No. Of

Deaths)

State / Confirmed Cases / Active Case / Recovered /

Deceased

Maharashtra 70,013 / 37,543 / 30,108 /

2,362

Tamil Nadu 23,495 / 10,138 / 13,170 /

187

Delhi 20,834 / 11,565 / 8,746 / 523

Gujarat 17,217 / 5,374 / 10,780 / 1,063

Rajasthan 9,100 / 2,688 / 6,213 /

199

Uttar Pradesh 8,361 / 3,109 / 5,030 /

222

Madhya Pradesh 8,283 / 2,922 / 5,003

/ 358

West Bengal 5,772 / 3,141 / 2,306 /

325

Bihar 3,945 / 2,181 / 1,741 / 23

Andhra Pradesh 3,676 / 1,238 / 2,374

/ 64

Karnataka 3,408 / 2,026 / 1,328 /

52

Telangana 2,792 / 1,213 / 1,491 /

88

Jammu and Kashmir 2,601 / 1,624 / 946 /

31

Haryana 2,356 / 1,280 / 1,055 /

21

Punjab 2,301 / 257 / 2,000 / 44

Odisha 2,104 / 850 / 1,245 / 9

Assam 1,486 / 1,194 / 285 / 4

Kerala 1,327 / 708 / 608 / 11

INTERNATIONAL AFFAIRS

======================

GEORGE FLOYD DEATH: TRUMP VOWS TO SEND IN TROOPS TO END UNREST

US Cities witnessed another night of protests despite widespread curfews as

sporadic unrest continued across the US one week after George Floyd's death,

which autopsies on Monday ruled was a homicide.

From New York to Washington DC and from Philadelphia to Los Angeles, many

communities enacted curfews on Monday, in some cases giving residents just

hours' or minutes' notice.

The US has been rocked by days of civil unrest as protests sweep from coast

to coast. Speaking from the Rose Garden on Monday evening, Donald Trump

threatened to deploy the military against against demonstrators. And in a

startling scene, police used teargas and rubber bullets to disperse crowds

of protesters near the White House while Trump spoke, even though the curfew

had not yet taken effect.

"If a city or state refuses to take the actions that are necessary to defend

the life and property of their residents, then I will deploy the United

States military and quickly solve the problem for them," Trump said during a

brief address.

THE WORLD BEGINS TO OPEN UP

The first day of June saw Covid restrictions ease from Asia to Europe on

Monday, even as US protests against police brutality sparked fears of new

outbreaks.

The Colosseum opened its ancient doors in Rome, ferries restarted in

Bangladesh, golfers played in Greece, students returned in Britain and Dutch

bars and restaurants were free to welcome hungry, thirsty patrons.

Countries around the Mediterranean Sea began tentatively to kickoff a summer

season in which tourists could bask in their famously sunny beaches while

still being protected by social distancing measures from a virus that is

marching relentlessly around the world.

Greece lifted lockdown measures Monday for hotels, campsites, open-air

cinemas, golf courses and public swimming pools, while beaches and museums

reopened in Turkey and bars, restaurants, cinemas and museums came back to

life in the Netherlands.

A long line of masked visitors snaked outside the Vatican Museums, which

include the Sistine Chapel, as they reopened for the first time in three

months. Italy is eager to reboot its tourism industry, which accounts for

13% of its economy.

In Asia, Bangladesh restarted bus, train, ferry and flight services Monday,

hoping that a gradual reopening revives an economy in which millions have

become jobless.

Traffic jams and crowds of commuters clogged Manila, as the Philippine

capital embraced a high-stakes gamble to kickstart the economy.

Czech Republic took out a list of 29 nations to which Czechs can travel to.

The South Korean govt has mandated QR codes to log visitors at high-risk

churches, nightclubs and entertainment sites. The QR codes are being used so

that the authorities can control new outbreaks.

THE REST

========

CYCLONE NISARGA FORMS OVER WESTERN COAST

Barely a fortnight since super cyclone Amphan, one of the strongest cyclones

that the country has seen, hit West Bengal, Odisha and Bangladesh, a

cyclonic storm - Nisarga - has been forming in the Arabian Sea over the past

24 hours. Indian Meteorological Department (IMD) officials Monday said the

low pressure area over Southeast and adjoining East-central Arabian Sea and

Lakshwadeep area has concentrated into a deep depression today and lay

centred about 370 km southwest of Panjim in Goa, and 690 km south-southwest

of Mumbai.

The cyclonic storm, Nisarga, is likely to be formed within the next 24 hours

and has a possibility of landfall on India's western coast on Wednesday.

While not as strong as super cyclone Amphan, Dr Mohaptra said, the monsoon

moisture would lead to very heavy rainfall, and that the low-lying areas on

the Maharashtra coast, especially in Mumbai, are likely to be inundated.

DELHI GOVT SEALS BORDERS

The Delhi government yesterday sealed its borders for a week, even as it

allowed other relaxations, such as the complete opening of markets and

allowing salons and barber shops to operate. The sealing of the borders is

being read as a sign that in Delhi government-run hospitals, beds are likely

to be reserved for only the city's residents.

Delhi CM Arvind Kejriwal said a final decision on whether or not hospital

beds will be reserved for Delhi residents will be taken based on feedback

from the public, experts and other stakeholders, for which the government

has issued helpline numbers.

During a webcast Monday, he elaborated on the concerns, saying opening the

borders may lead to hospital beds filling up within a short span. "People

from across states come to Delhi for healthcare as facilities here are among

the best in the country and all this is available for free," Kejriwal said.

The decision sparked outrage in the adjoining states of Haryana and U.P.

MONSOON ARRIVES IN KERALA, GOOD RAINFALL DISTRIBUTION THIS YEAR: IMD

The Southwest monsoon has hit Kerala on Monday morning, making it a timely

onset over the southern State for the first time since 2013.

The country receives over 70 per cent of its annual rainfall from this

season between June and September. This year, the IMD has forecast a normal

monsoon for the country.

"There will be good rainfall distribution over all the homogeneous regions

of the country. We expect normal rainfall this season, with a model error of

+/- 4 per cent," an IMD statement said.

KEEP MIDDLE SEATS VACANT TO EXTENT POSSIBLE: DGCA TO AIRLINES

The DGCA on Monday asked airlines to allot seats in flights in such a manner

that middle seats are kept vacant to the extent possible.

However, if a flyer has been allotted the middle seat due to a high

passenger load "then additional protective equipment like wrap-around gown

of the Ministry of Textile approved standards" must be provided to that

passenger in addition to three-layered face mask and face shield, said the

DGCA order.

India resumed its domestic passenger flights from May 25 after a gap of two

months due to the coronavirus-triggered lockdown. International commercial

passenger flights continue to remain suspended in the country.

COOK, NADELLA AND PICHAI STAND TOGETHER IN SUPPORT OF RACIAL EQUALITY

Apple, which had to shut a majority of retail stores in the US after the

protests against the killing of African-American George Floyd in police

custody turned violent, has come out in support of racial equality. Leaders

of other prominent technology firms such as Microsoft and Google also spoke

out.

Tim Cook, chief executive of Apple, in a memo to employees, said: "That

painful past is still present - not only in the form of violence but in the

everyday experience of deeply rooted discrimination."

"To stand together, we must stand up for one another, and recognise the

fear, hurt, and outrage rightly provoked by the senseless killing of George

Floyd and a much longer history of racism," he said in the memo.

Satya Nadella, CEO of Microsoft, raised his voice on racism at an internal

meeting. "I want to start by talking about an issue that is important to all

of us and is impacting and hurting many amongst us, very directly, and very

severely. The everyday racism and hatred is not new," he said, and added:

"But we can start by checking in with each other, and have empathy for what

others are feeling."

Sundar Pichai, CEO, Google, said the company has decided to share its

support for racial equality in solidarity with the black community on Google

and YouTube homepages in the US.

SHOPPING MALLS COME OUT WITH THEIR PROPOSED SOPs

As part of Unlock 1.0 the Union government has allowed shopping malls to

resume operations from June 8, 2020. After being locked for more than 2

months because of the Covid-19 lockdown, shopping malls will welcome

shoppers while following standard operating procedures (SOP). Shopping malls

have submitted these SOPs to the Union government.

1. Only three people will be allowed in an elevator at one time.

2. On escalators, two people will maintain a distance of at least 3 steps.

The next person to board the escalator after three steps rollover.

3. Retail stores will have restricted customer entry depending upon their

store size. Ideally only one customer per 50 square feet of store space.

4. Mall air conditioning to be between a minimum of 24 degrees centigrade to

30 degrees centigrade. Humidity should be between 40 to 70 per cent. Fresh

air intake to be maximised with minimum air re-circulation.

5. Stores to restrict trials for products like make-up, shoes, perfumes. Use

of trial rooms to be restricted too.

6. 1.5 metre gap between customer seating to be ensured.

7. Reduce seating in the food and beverage (F&B) segment by 50 per cent with

a minimum distance of 2.5 metres.

BOLLYWOOD SINGER-COMPOSER WAJID KHAN DIES AT 42

Singer-composer Wajid Khan of music director duo Sajid-Wajid, popular for

their work on superstar Salman Khan's films such as "Wanted", "Dabangg" and

"Ek Tha Tiger", died in wee hours on Monday in a Mumbai hospita. The

42-year-old singer had underlying kidney issues and was also found to be

Coronavirus positive.

"He had multiple issues. He had a kidney issue and had a transplant a while

ago. But recently he got to know about kidney infection... He was on the

ventilator for the last four days, after his situation started getting

worse. Kidney infection was the beginning and then he got critical," said

Music composer Salim Merchant.

NIFTY ZOOMS 1,000 POINTS IN JUST 9 TRADING SESSIONS; HDFC BANK SHINES

Shrugging off grim economic forecasts and rising Covid-19 cases, the

benchmark Nifty has climbed 11.4% - from 8,823 on May 18 to 9,826 on June 1

in just nine trading sessions. The sharp upswing in the market has got

several traders off guard.

Interestingly, all the 50 Nifty components have delivered positive gains

during this period. The biggest contributor to the gains have been HDFC Bank

and HDFC, accounting for a fourth of the 1,000-point rally on the Nifty.

ITC, ICICI Bank and Reliance Industries are the next biggest contributors.

INDICATORS

Sensex 33,303 (+879), Nifty 9,826 (+246), Trading Value NSE ,(Rs.crores)

63,252

Nasdaq 9,552 (+62) Dow 25,475 (+91), S&P 3,056 (+11)

US$-Rs. 75.08 GBP-Rs. 93.32, Euro-Rs. 83.54, UAE Dhm-Rs.20.43, Can$-Rs.

54.93, Aus$- Rs. 50.70

GBP 0.80 /US$, Euro 0.89 /US$, Jap.Yen 107.61 /US$, Aus$ 1.48 /US$, Sing

1.40 /US$, Bang Taka 83.34 /US$, Can$ 1.36 /US$, Mal Ring 4.31 /US$,

Pak Re 162.71 /US$, Phil Peso 50.35 /US$, Russian Rouble 69.61 /US$, NZ$

1.59 /US$, Thai Baht 31.65 /US$, Ukraine Hryvnia 26.58 /US$, Norway NOK 9.65

/US$

Bitcoin - USD 10,060

Dollar Index 97.90 Brent Crude 38.50 BDI 504

Gold world Spot Price USD/aoz 1,739 India (Rs. per gm 24k/22k) 4,707 / 4,607

Silver (Rs. Per KG) 50,120

THOUGHT FOR THE DAY

The older I grow, the more I distrust the familiar doctrine that age brings

wisdom. - H. L. Mencken

OFF TRACK

As a jet was flying over Arizona on a clear day, the copilot was providing

his passengers with a running commentary about landmarks over the PA system.

"Coming up on the right, you can see the Meteor Crater, which is a major

tourist attraction in northern Arizona. It was formed when a lump of nickel

and iron, roughly 150 feet in diameter and weighing 300,000 tons, struck the

earth 50,000 years ago at about 40,000 miles an hour, scattering white-hot

debris for miles in every direction. The hole measures nearly a mile across

and is 570 feet deep."

The lady sitting next to me exclaimed: "Wow, look! It just missed the

highway!"