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Research Periodic Report Reliance Retail Seeks $1.5 Billion from Sovereign Wealth Funds, Adani Group Eyes Debt Refinancing for Ambuja Cements Deal

Reliance Retail Seeks $1.5 Billion from Sovereign Wealth Funds, Adani Group Eyes Debt Refinancing for Ambuja Cements Deal

Written by - Fisdom Research

September 14, 2023 5 minutes

Opening Bell:

Gift Nifty is up by 34.0 points in the early morning trade, indicating a positive opening for Indian stock market.

Asia-Pacific markets rose across the board even as inflation in the U.S. inflation rate in August came in hotter than expected, at 3.7% compared to economists’ expectations of 3.6% in a Dow Jones survey. Month-on-month, the consumer price index rose 0.6% in August, in line with expectations.

In July, the CPI rose 3.2% year-on-year and 0.2% month-on-month. However, excluding volatile food and energy costs, the core CPI rose 4.3%, in line with estimates and down from 4.7% in July. Federal Reserve officials focus more on core as it provides a better indication of where inflation is heading over the long term. In Australia, the S&P/ASX 200 climbed marginally, ahead of August unemployment figures. Japan’s Nikkei 225 rose 0.5%, while the Topix saw a smaller gain of 0.4%. South Korea’s Kospi inched up 0.43%, and the Kosdaq was 0.84% higher. Futures for Hong Kong’s Hang Seng index stood at 18,042, also pointing to a stronger open compared to the HSI’s close of 18,009.22.

Stock futures hovered near the flat line on Wednesday ahead of the August producer price index, a gauge of wholesale inflation. Dow Jones Industrial Average futures edged up 0.03%, while S&P 500 futures rose 0.09%, and Nasdaq 100 futures gained 0.1%. During regular trading, the Dow dropped 0.2% for a second consecutive day, with the Nasdaq Composite up nearly 0.3% and the S&P 500 adding 0.1%. The August consumer price index (CPI) reading, which showed a 0.3% increase in the core CPI and 4.3% increase from the prior year, is not expected to alter the Federal Reserve’s course at its upcoming policy meeting starting on September 19. According to CME FedWatch Tool data, there’s a 97% likelihood of rates staying unchanged next week. However, market volatility is expected to persist, with a 48% probability of rate hikes at the November meeting

Stocks News:

👉Reliance Industries: Reliance Retail is in talks with existing investors including the sovereign wealth funds of Singapore, Abu Dhabi and Saudi Arabia for combined new investments of around $1.5 billion. The discussions of India’s largest retailer with investors are part of an internal target to raise $3.5 billion which the company wants to close by the end of this month, according to a report by news agency Reuters. Out of that, QIA last month announced a $1 billion investment and KKR & Co this week $250 million.

👉 Adani Group: The Adani Group is in talks with global banks to refinance debt taken on to fund its purchase of Ambuja Cements Ltd, with lenders divided into three categories, in what could be one of Asia’s largest syndicated loan deals of the year. The global banks are likely to refinance a total of $3.5 billion, according to a report by Bloomberg News. The ports-to-power conglomerate would repay at least $300 million on the original Ambuja facility.

👉 IRCTC: The company has signed a Memorandum of Understanding (MOU) with Maharashtra State Road Transport Corporation (MSTRC) to enable MSRTC’s online bus booking services via IRCTC’s bus booking portal/website. The detailed roles & responsibilities of IRCTC & MSRTC will be finalized for executing the above project in coordination by both parties.

👉 Bombay Dyeing and Manufacturing Company: The company approved the proposal to sell the land parcel of about 22 acres in Worli, Mumbai to Goisu Realty Private Limited (a subsidiary of Sumitomo Realty & Development Company Limited) in 2 phases, for a total consideration of about Rs 5,200 crore. BDMC will receive about Rs 4,675 crore in Phase-I and the rest in Phase-II.

👉Foreign institutional investors (FII) sold shares worth Rs 1,631.63 crore, while domestic institutional investors (DII) bought Rs 849.86 crore worth of stocks on September 13, provisional data from the National Stock Exchange (NSE) showed.           

Domestic and International Events

  • The Reserve Bank has instructed banks and financial institutions to release borrowers’ property documents and remove charges registered with registries within 30 days after full loan repayment. Failure to comply will result in Regulated Entities compensating borrowers at a rate of Rs 5,000 per day of delay, according to the RBI. The move aims to standardize practices and address customer grievances.
  • The Indian cabinet has approved the third phase of the eCourts Project, which aims to improve access to justice using technology. With a financial outlay of Rs 7,210 crore over four years, the project will digitize court records, implement e-filing and e-payment systems, and introduce intelligent smart systems for decision-making. The objective is to create a unified technology platform that provides a seamless interface for the judiciary, litigants, and other stakeholders. The project also aims.
  • Oil prices climbed on Wednesday due to anticipated tight crude supply for the rest of the year, which offset inflation concerns. Saudi Arabia and Russia’s extension of crude oil production cuts will likely lead to a market deficit through the fourth quarter, according to the International Energy Agency. Bank of America analysts suggest Brent futures could surpass $100 a barrel by year-end. Despite a 10.6% rise in retail gasoline prices, U.S. consumer prices, excluding food and energy, increased by 0.3%. Brent futures rose to $92.46 a barrel, while U.S. West Texas Intermediate (WTI) crude reached $89.25.
  • Gold steadied on Wednesday after retreating immediately following data showing an acceleration in U.S. consumer prices, on expectations that the inflation readings may not prompt a big change in the Federal Reserve’s interest rate strategy. Spot gold was steady at $1,912.86 per ounce. U.S. gold futures were also steady at $1,935.40 per ounce.     

Key Equity Indices

Hang Seng18,009(0.1) %
Shanghai Composite3,123(0.5) %
Dow Jones34,576(0.2) %
DAX15,654(0.4) %
FTSE 1007,526(0.0) %
Nikkei32,707(0.2) %
Straits Times3,2190.1 %

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