The BSE Sensex and the NSE Nifty started the week with a bloodbath as they suffered steep losses on Monday. Weakness was observed across sectors as the markets mirrored a global sell-off amid worries regarding the inflation in the US and the US Fed’s policy. A lockdown was reimposed in Shanghai due to a surge in the number of cases, adding to concerns about global growth.

By Friday, the benchmark indices extended losses to a sixth back-to-back session even though they managed to recover most of their intraday losses on the back of strength in select financial and oil & gas shares. Global markets were in a cautious mood amid heightened worries about a looming recession. IT heavyweights such as TCS and Wipro weakened, and losses in the IT sector played spoilsport.

Market Movers

Some of the top gainers as the week came to an end were Delta Corp Ltd, Asahi India Glass Ltd., Rajesh Exports Ltd., Sun TV Network Ltd. and Hindustan Aeronautics Ltd. On the other hand, the top losers were Adani Total Gas Ltd., The Fertilisers and Chemicals Travancore Ltd., Jubilant Pharmova Ltd. Network 18 Media & Investments Ltd., and BSE Ltd.

Currencies

PriceChange%Change
Dollar-Rupee78.07000.000.00%
Euro-Rupee82.0770-0.16-0.20%
Pound-Rupee95.9370-0.35-0.36%

Commodities

PriceChange%Change
GOLD51010.0024.00 0.05%
SILVER61550.0023.00 0.04%
CRUDEOIL9052.0050.00 0.56%

The Recap

In this week’s recap, we shall take a look at Air India’s acquisition of Air Asia, countries where FIIs are investing, Jindal Steel’s loan, PhonePe’s IPO plans, and an increase in promoter stake.

Air India’s acquisition of Air Asia

The Competition Commission of India approved Air India’s proposed acquisition of Tata group’s entire 83.67 per cent stake in AirAsia India, giving a boost to the group’s plans of merging both the airlines.

The Tata Group owns and operates four airlines in India, at present – Air India, Air India Express, AirAsia India, and Vistara. 

Air India and AirAsia have a combined market share of 13% in India. While the Tata Group plans to merge AirAsia India with Air India Express, an Air India subsidiary, it has not taken a decision on bringing Vistara into its fold.

Here’s where FIIs are investing

FIIs have been constantly selling their stake since October 2021. They have sold shares worth ₹19.7 bn since then. This is one of the major reasons why stocks are falling in India.

FII Investments have shifted from importing countries to exporting countries, mainly due to the Russia Ukraine war. Exporting countries are at an advantage due to supply chain disruptions. They can easily sell their products at increased prices.

They have invested the highest amount of money in these countries: US $ 12,686 in Brazil, US $ 2,663 in Thailand, and US $ 1,344 in Indonesia.

Jindal Steel is raising ₹ 15,000 crores

Jindal Steel and Power Limited (JSPL) is raising ₹15,000 crores from a clutch of banks led by the State Bank of India (SBI), in one of the largest corporate loan agreements in recent times.

This loan will be bigger than the ₹12,770 crore loan taken by the Adani Group recently.

The proposed loan has been rated A+ by CareEdge Ratings. It believes that the project has high strategic importance and economic incentive for JSPL.

Walmart-backed PhonePe is prepping for an IPO

PhonePe, a payments company backed by Walmart Inc is aiming to raise funds through an Initial Public Offering (IPO) and seeks a valuation of $8 to $10 bn.

It plans to go public once its core business turns profitable which it hopes to achieve by next year.

The company wants to broaden its financial services portfolio and deepen its core  United Payments Interface (UPI)-based payments operations.

Vijay Shekhar Sharma bought over 1.72 lakh shares of Paytm

As per a regulatory filing, Vijay Shekhar Sharma bought shares worth ₹11 crores in Paytm (One 97 Communications)

He bought 1,00,552 shares worth ₹6.31 crore on May 30, and later on May 31, he further bought 71,469 shares aggregating to ₹4.68 crores. 

He was not allowed to buy shares in Paytm for at least six months as he was selling shareholding in the company’s public offering. However, he went ahead and purchased the shares once the restrictions were removed.

Written By – Simran Bafna

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