Rahul Gandhi warns to Foreign takeover of Indian corporates
While the coronavirus has broken the back of the economy, on the other hand, the threat of a recession looms on the horizon. Meanwhile, Congress leader Rahul Gandhi warned the government that the economic slowdown has weakened the Indian corporate and made it an attractive target for acquisition. Rahul said that in this hour of crisis, the government should not allow foreign companies to control Indian corporate.
His reference was to the Central Bank of China upping its stake in HDFC Bank to more than 1 percent. Significantly, the central bank of China has given HDFC Ltd, a home loan lender. Increased one percent share in the March quarter. As per the data available with the stock market, People’s Bank of China owned 1,74,92,909 equity shares of HDFC at the end of March, which is equivalent to 1.01 per cent share capital.
The massive economic slowdown has weakened many Indian corporates making them attractive targets for takeovers. The Govt must not allow foreign interests to take control of any Indian corporate at this time of national crisis.
— Rahul Gandhi (@RahulGandhi) April 12, 2020
Shares have declined in the last two months amid the outbreak of Coronavirus infection. This has given investors an opportunity to buy shares at a lower price. According to the report, Chinese banks are exploring new investment opportunities in India. However, it is not known at what price the shares were bought. HDFC shares were down 33 percent during January-March. On January 1 it was at 2,433.75 as on March 31 at Rs 1,630.45.
Investor Jim Rogers said – may see worse times ahead
Asian and European markets continue to decline due to the corona virus outbreak. The first quarter of this year has also been bad for the stock markets due to the pandemic. The world is on the verge of recession. Millions of people have lost jobs. There is fear of getting axed from job on crores of people. With Covid-19, many big economies of the world are on the verge of destruction. It is not going to stop here. More bad days are yet to come this is the view of veteran investor Jim Rogers. The chairman of Rogers Holdings Inc. says that the rally, which is seen in the stock market after a very large decline, may continue for some time. But, bad times are yet to come.
Rogers says the Coronavirus will kill the market in three ways. First, there is a huge loss to the economy. Second, the debt will increase drastically. In the end, the low interest rates right now will hurt a lot. Rogers said, “In the next two years I am going to see the biggest market downturn in my life.” The last quarter was the worst for the market after the 2008 economic downturn. Governments around the world made large investments to strengthen the economy. Central banks have quickly reduced interest rates.
