The benchmark stock indices have opened the day with modest gains after Reliance shares were boosted by the company’s latest deal.

Join us as we follow the top business news through the day.

10:20 AM

Borrowing by states increases 45% this fiscal

Eleven States raised a total of ₹14,298 crore at the auction of State government securities or State development loans (SDLs) held on Tuesday.

This is ₹1,500 crore more than the notified amount of the auction as Maharashtra and Gujarat had accepted an additional ₹1,000 crore and ₹500 crore respectively, CARE Ratings said in a report based on RBI data.

From April 7 to September 22 in this financial year, 27 States and 2 Union Territories have cumulatively raised ₹3.26 lakh crore via market borrowings, which is a 45% increase from the borrowings in the corresponding period of 2019-20.

Having faced a sharp decline in revenues, State governments have been increasingly resorting to market borrowings. Barring the seven States of Arunachal Pradesh, Tripura, Manipur, Punjab, Uttar Pradesh, Himachal Pradesh and Jharkhand, the borrowings of all the other States have seen a notable increase from year ago, CARE said.

 

10:00 AM

Shares rise as Reliance gains on KKR investment deal

First gains of the week for stocks.

Reuters reports: “Indian shares rose on Wednesday, led by gains in Reliance Industries after an investment deal by KKR & Co Inc in the conglomerate’s retail arm, with a decision by India and China to not send more troops to the contested border aiding sentiment.

Shares of Reliance rose 2.9% after it said U.S. private equity firm KKR will invest 55.50 billion rupees ($755.09 million) in the conglomerate’s retail arm.

China and India agreed to stop sending more troops to a Himalayan flashpoint along their contested border and to avoid any actions that might complicate the tense situation there, the two countries said on Tuesday.

The broader NSE Nifty 50 index rose 0.7% to 11,230.20 and the S&P BSE Sensex 0.7% to 37,997.74 by 0345 GMT. Both the indexes have fallen for the past four sessions and lost nearly 3% this week as of last close.”

9:30 AM

KKR to invest ₹5,550 cr. in Reliance Retail Ventures

U.S. private equity firm KKR & Co Inc will invest 55.50 billion rupees ($755.09 million) in Reliance Industries Ltd’s retail arm, giving the unit a pre-money valuation of 4.21 trillion rupees, the Indian conglomerate said on Wednesday.

KKR’s investment will translate to a 1.28% stake in Retail Ventures Ltd, according to Reliance.

Reliance, which has been on a fund-raising spree, had earlier raised $1.02 billion from U.S. private equity firm Silver Lake Partners for its retail business.

Reliance, controlled by Asia’s richest man Mukesh Ambani has been looking to expand rapidly online to take on the likes of Walmart Inc’s Flipkart and Amazon.com Inc’s Indian arm.

 



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