Adani Group plans to raise $3bn, Vedanta repaid $400 mn debt

Opening Bell:

SGX Nifty is down by 60 points in the early morning trade, indicating a negative opening for Indian stock market.

Asia-Pacific markets were mostly higher on Thursday ahead of a final vote on the bill to raise the U.S. debt ceiling after it passed a key procedural hurdle in the House overnight. Private surveys for factory activity data for China, Japan, South Korea as well as several Asean countries will be released later today. In Japan, the Nikkei 225 saw a 0.18 percent gain, South Korea’s Kospi and Kosdaq both rose marginally.

Stock futures inched lower late Wednesday after the market wrapped the month of May, marked by a dramatic rally in artificial intelligence-related stocks. Futures on the Dow Jones Industrial Average dipped 47 points, or 0.14 percent. S&P 500 futures and Nasdaq 100 futures both inched lower. The Nasdaq Composite ended May with a 5.8 percent gain as enthusiasm around AI continued to boost related stocks. The S&P 500 inched up 0.3 percent in the month.

Stocks News:

👉Sona BLW Precision Forgings was in focus on May 31, as Societe Generale, and Government of Singapore picked additional shares worth Rs 609.26 crore in the auto ancillary company, whereas promoter Aureus Investment has offloaded 3.24 percent stake.

👉Government on May 31 has proposed to offload 3 percent stake in Coal India Limited via an offer-for-sale (OFS) at discount of 6.7 percent to last closing price of the stock. The size of OFS is around Rs 4,000 crore.

👉Billionaire Gautam Adani’s conglomerate is looking to raise about $3 billion through an equity share sale to institutional investors in the boldest comeback strategy after the ports-to-energy group was hit by a damning report of a US short seller. Adani Transmission Ltd have approved raising up to Rs 21,000 crore (over $2.5 billion) through share sales to qualified institutional investors, Adani Green Energy Ltd is likely to do so for raising up to $1 billion in the next couple of weeks, sources aware of the matter said.

👉Vedanta Resources, the parent company of Mumbai-listed mining giant Vedanta Ltd, said it has further repaid $400 million of loans, cutting gross debt to $6.4 billion.

👉Foreign institutional investors (FIIs) bought shares worth Rs 3,405.90 crore, whereas domestic institutional investors (DIIs) sold shares worth Rs 2,528.52 crore on May 31, provisional data from the National Stock Exchange shows.

Domestic and International Events

• India’s Gross Domestic Product (GDP) growth rate rose for the first time in three quarters to 6.1 percent in January-March, the Ministry of Statistics and Programme Implementation said on May 31. For 2022-23 as a whole, the statistics ministry’s first provisional estimate has pegged the GDP growth at 7.2 percent, 20 basis points higher than the second advance estimate of 7 percent. At 6.1 percent, the latest quarterly growth number is significantly higher than expectations of 5.1 percent
• India will need Rs 33.60 trillion to build additional electricity generation capacity to meet its growing demand, which is expected to reach 2,473.8 billion units by 2031-32, with a peak power demand of 366.4 gigawatts (GW), according to the National Electricity Plan (NEP) notified by the government for the period of 2022-2032.
• Oil prices fell on Wednesday on a stronger U.S. dollar and as weak data from top oil importer China raised demand fears. Brent crude futures for August delivery were last down 94 cents, or 1.28 percent, to $72.60 a barrel. U.S. West Texas Intermediate crude (WTI) fell $1.47, or 2.12 percent, to $67.99. Both benchmarks fell by over $2 earlier in the session to a multi-week low and by more than 4 percent on Tuesday.
• Gold firmed on Wednesday supported by lower Treasury yields but the dollar’s strength, with more interest rate hikes in the offing and optimism about a U.S. debt deal kept bullion on course for its first monthly dip in three.

Key Equity Indices