Stocks have opened the day with significant gains of over 1% after falling sharply over the last few sessions.
Shares of Reliance Industries have jumped after news of another stake sale to pare down debt.
Join us as we follow the top business news through the day.
Raghuram Rajan speaks on fears over debt monetisation
India inflation likely fell to a five-month low in April
The drop in consumer demand owing to the nation-wide lockdown is expected to push inflation to a five-month low in April.
Reuters reports: “Indian retail inflation eased to a five month low in April as the nationwide lockdown imposed to try to quell the spread of the coronavirus and subsequent sluggish demand drove price pressures down, a Reuters poll found.
The May 5-7 poll median of more than 40 economists predicted India’s annual consumer price inflation fell to 5.68% in April from March’s 5.91%, still above the Reserve Bank of India’s medium-term target of 4.00%.
Forecasts in the poll ranged between 4.50% and 7.00% and about 80% of participants expected inflation to be below the upper band of the RBI’s inflation target range of 2.00-6.00%.
“The economic inactivity caused by the lockdown has been a big driver for inflation in April, leading to a broad-based deceleration in price pressures across all components except food,” said Rini Sen, India economist at ANZ.
“Although food prices rose in the month – owing to larger supply side constraints – it was more than offset by weaker price pressures across all other components, including domestic fuel prices.””
U.S.-based Vista Equity Partners picks 2.32% stake in Jio Platforms for ₹11,367 crore
US-based private equity firm Vista Equity Partners will buy a 2.32% stake in billionaire Mukesh Ambani’s digital unit, Jio Platforms, for ₹11,367 crore, the company announced on Friday.
“This investment values Jio Platforms at an equity value of ₹4.91 lakh crore and an enterprise value of ₹5.16 lakh crore,” the company said in a statement.
Vista’s investment will translate into a 2.32% equity stake on a fully diluted basis, making Vista the largest investor in Jio Platforms behind Reliance Industries and Facebook.
Facebook had bought 9.99% stake in Jio Platforms — the firm that houses India’s youngest but biggest telecom firm, for ₹43,574 crore. That deal was followed by Silver Lake — the world’s largest tech investor — buying 1.15% stake in Jio Platforms for ₹5,665.75 crore.
Sensex rallies over 600 points in early trade; RIL jumps 2%
Foreign buying has helped prop up the benchmark indices this morning after a sharp drop the last few days.
PTI reports: “Equity benchmark Sensex rallied over 600 points in opening session on Friday as strong gains in index-heavyweight Reliance Industries, massive foreign fund inflow and positive global cues boosted market sentiment.
After touching a high of 32,088.51, the 30-share index was trading 559.96 points or 1.78 per cent higher at 32,003.34.
Similarly, NSE Nifty surged 175 points, or 1.90 per cent, to 9,374.05.
IndusInd Bank was the top gainer in the Sensex pack, soaring over 4 per cent, followed by Kotak Bank, Hindustan Unilever and Axis Bank.
Shares of Reliance Industries jumped over 2 per cent after the company announced that US-based private equity firm Vista Equity Partners has picked up 2.32 per cent stake in Jio Platforms for Rs 11,367 crore.
On the other hand, PowerGird, HCL Tech, Asian Paints and NTPC were trading in the red.
In the previous session, the BSE barometer dropped 242.37 points or 0.76 per cent to close at 31,443.38. The broader NSE Nifty slipped 71.85 points, or 0.78 per cent, to 9,199.05.
Foreign portfolio investors purchased equities worth Rs 19,056.49 crore in the capital market on Thursday, provisional exchange data showed.
According to traders, besides stock-specific action, massive foreign fund inflow and firm cues from global markets enthused buying activity in the domestic market.”