The coronavirus outbreak is likely to negatively impact half of the passenger vehicle (PV) sales in FY21. The Reserve Bank of India's support measures for mutual funds may struggle to be effective, as low-capitalised banks are unlikely to extend liquidity to the sector without capital relief on the facilities. The fate of investors of the six closed debt funds and other fund of funds (FoF) investors will depend upon how quickly the Franklin Templeton fund house can sell all its securities. Read for more top stories from the world of business and economy:
According to an analysis, top 100 districts account for 62 per cent of passenger vehicle sales in volume terms, with 41 per cent coming from the top 40 districts alone.
The average thermal PLF (plant load factor), which determines the capacity utilisation for power companies is expected to fall from 56 per cent in fiscal 2020 to 54 per cent in 2020-21 against an earlier projection of 60 per cent.
Fitch feared that if the liquidity facility does not achieve its aims of supporting liquidity or restoring market confidence, more debt schemes will be forced to suspend redemptions.
Franklin Templeton investors can hope to get better realisation of their locked investment if the market sentiment improves.