Stock market crashes the most in three months
India’s benchmark indices plunged for the fifth consecutive trading session on Monday as investors continued to sell assets in emerging markets. The Sensex shed 1,546 points, or 2.62 percent, to close at 57,491, the lowest level since December 27. The Nifty fell 468 points, or 2.66 percent, to 17,149. It was the sharpest single-day fall since November 26.
Why it’s important: There is anxiety that the US Federal Reserve will suck out liquidity that had boosted stocks to record levels at a faster pace than anticipated earlier. Investors dumped emerging market stocks. The prospect of a Russian invasion in Ukraine added to the negative sentiments.
Swiggy valued at $10.7 billion after latest funding round
Swiggy raised $700 million in new funding led by Invesco, almost doubling its valuation to $10.7 billion. The food delivery platform’s new valuation is almost double that of Zomato before the latter went for its initial public offering. Zomato was valued at $5.4 billion before its IPO.
Why it’s important: Swiggy is now a decacorn, as startups valued at over $10 billion are called. It has also emerged as the second most valuable privately held startup after educational technology firm Byju's.
Reliance to raise $3 billion to fund renewable energy business
Reliance Industries has started discussions with global investors to raise $3 billion in equity to fund its ambitious plans for the renewable energy business. The bulk of the new funding will go to Reliance New Energy Solar, which intends to build solar capacity of at least 100 GW by 2030.
Why it’s important: Reliance Industries, which generates more than half of its revenues from refining and petrochemicals, is building the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar to make integrated solar photovoltaic modules, fuel cells and energy storage. Reliance plans to invest more than Rs 750 billion over the next three years to become a net-zero company by 2035.
Air India to be handed over to Tata Group by Thursday
Air India is expected to be handed over to Tata Group by January 27, the carrier’s head of finance Vinod Hejmadi told employees in a letter. The government was rushing to finalize mandatory processes like the closure of financial statements by that date.
Why it’s important: The Tata Group won a bid to buy the debt-laden national carrier for Rs 180 billion last year. The airline did not post profits since its merger with Indian Airlines in 2007-08 and reported a loss of Rs 70.17 billion in 2020-21. The privatization might change its fortunes.
Ola Electric raises $200 million in latest funding
Electric vehicle startup Ola Electric has raised over $200 million from Tekne Private Ventures, Alpine Opportunity Fund, Edelweiss, and other investors, at a valuation of $5 billion. The company was last valued at $3 billion in September, when it raised a similar amount.
Why it’s important: The new funding is expected to hasten Ola’s development of other vehicle platforms such as electric motorbikes, mass-market scooters, and electric cars. Ola Electric began delivering its first electric vehicle, Ola S1 Pro, last month after missing deadlines multiple times.
Vodafone Idea stock slumps on lesser users, wider losses
Shares of Vodafone Idea declined by nearly 8 percent on Monday, on the back of widening losses and rapidly falling user base. The operator has tried to allay concerns of customer exits, pinning them down to SIM consolidation and short-term impact of tariff hikes.
Why it’s important: The telecom operator telco has said investors have shown renewed interest in Vodafone Idea after the government offered the industry a relief package. The company accepted the four-year moratorium and is set to convert interest from the deferred spectrum to 35. 8 percent government equity. It is also pinning its hopes on a tariff hike in 2022.
Budget may give a boost to energy service companies
The federal budget to be presented on February 1 may give a push to the energy service companies in commercial buildings. ESCOs offer design and implementation services for energy-efficiency projects after doing energy audits.
Why it’s important: This development is part of India’s plan to reduce carbon emissions. India’s energy efficiency measures have shown positive results in its domestic lighting program, with the government’s UJALA scheme helping reduce LED bulb prices.
Future Retail says Amazon’s offer of funding legally invalid
Independent directors of Future Retail have rejected Amazon’s offer of financial help through a deal with private equity firm Samara Capital, saying the Indian retailer cannot accept any legally invalid offer.
Why it’s important: Amazon had earlier said it was willing to financially assist Future Retail through the Samara Capital deal on condition that Future drops the Rs 247.13 billion deal to sell its retail assets to Reliance Industries. The two firms are fighting legal battles in courts and arbitration tribunals.
Novelis to borrow up to $350 million from Axis Bank
Novelis, the overseas arm of Hindalco, will raise $300-350 million in overseas loans from Axis Bank, seeking to part repay earlier market borrowings. The bilateral short-term loan is being raised from Gujarat GIFT City.
Why it’s important: Indian companies are rushing to raise money offshore as the US Treasury benchmark is rising amid the likelihood of faster than anticipated increases in US Federal Reserve rates.
Budget may keep aside increased sums for food and fertilizer subsidies
The Union Budget 2022 is likely to allocate steep amounts for food and fertilizer subsidies for the financial 2022-23, which are expected to be like the revised estimates for the current fiscal year, according to analysts.Why it’s important: Higher subsidies might be warranted as global commodity prices remain elevated. The poorest sections of society in India are still suffering from the earnings disruptions caused by the Covid-19 pandemic and require continued government support.