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Adani Group receives assurance for financial support from 3 Japanese Bank:

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The Adani Group has secured assurance on financial backing from Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking and Mizuho Financial Group- Japanese banks reported The Financial Express on Monday citing sources.

These three Japanese banks that are not lenders to the group currently will issue fresh loans to the Adani Group for new projects and refinance the group’s existing high-cost debt, stated the report. The Adani Group that has been in trouble since the release of the Hindenburg report that accused the group of stock manipulation and accounting fraud, secured the assurances through investor roadshows that were carried out across Asia and Europe as a means to regain trust.

According to the report by the Financial Express that quotes sources close to the development, Adani Group’s existing lenders like Standard Chartered and Barclays have also “reaffirmed” their confidence in the group’s operations. Additionally the report also added that all banks have pledged support to refinance bonds worth $4 billion that are maturing in the financial year 2023-24 and 2025-26, and also the group’s existing and new debt.

Even GQG Partners, the conglomerate’s existing investor, is expected to continue investing in the group’s companies. GQG Partners have invested Rs 15,446 crore in Adani Enterprises, Adani Green Energy, Adani Ports and Adani Total Gas.

Adani Group’s expansion plan

The companies that are under the Gautam Adani-led group require cash flows as the company has plans to expand with large-scale infrastructure and utility space projects that includes the expansion of the cement business. The group is also in talks to raise approximately $800 million for new green energy projects.

During the road show the Adani Group informed investors that it will see growth in the infrastructure, cement and FMCG businesses.

Adani Group’s debt

The Gautam Adani-led group’s debt as of March 31, 2023 was at Rs 2.27 trillion that includes 39 per cent bonds, 29 per cent loan from international banks and 32 per cent loans from Indian banks and NBFCs. The gross value of the company’s assets was at Rs 3.91 trillion.

Business

FII inflows, Nvidia earnings, oil prices among key factors to drive stock market next week

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Indian stock markets are likely to remain volatile next week as investors track foreign institutional investor (FII) flows, crude oil price movements, Nvidia’s quarterly earnings and changing interest rate expectations.

After a spectacular rally that pushed the Sensex and Nifty higher for 10 consecutive sessions, benchmark indices witnessed some profit booking towards the end of last week. However, sustained foreign inflows and resilient corporate earnings helped markets retain their weekly gains.

The Sensex declined 319 points to close at 81,592 on Friday (November 13), while the Nifty slipped over 155 points to settle at 25,144, snapping a three-session winning streak.

The correction came amid renewed concerns over global AI-related trade, rising crude oil prices and expectations of tighter monetary policy following a sharper-than-expected increase in domestic inflation.

One of the biggest factors influencing market sentiment next week will be the continuation of FII buying. Foreign investors remained net buyers of Indian equities for the tenth consecutive session on Friday, purchasing shares worth Rs 5,736.55 crore, according to provisional NSE data.

Crude oil prices will also remain on investors’ radar as geopolitical developments in the Middle East continue to create uncertainty over global energy supplies.

While comments from US President Donald Trump suggesting that the Iran war was effectively over initially eased concerns and triggered a decline in oil prices, fresh attacks on Saudi energy infrastructure and disruptions to shipping through the Strait of Hormuz led to a rebound.

Brent crude is currently hovering near $96 per barrel. Any further rise in oil prices could weigh on India’s macroeconomic outlook, inflation and corporate margins, while a sustained decline may support market sentiment.

Global technology stocks will also be in focus as investors await Nvidia’s quarterly earnings announcement scheduled for Tuesday (November 17).

The chipmaker’s results and management commentary could influence sentiment around the global artificial intelligence trade.

Any sharp movement in AI-related stocks may have an impact on Indian equities, particularly technology shares, as investors assess the implications for global growth and the competitive positioning of Indian IT companies.

Meanwhile, rising inflation has brought interest rate expectations back into focus. India’s retail inflation accelerated to 6.09 per cent in October from 5.54 per cent in September, breaching the Reserve Bank of India’s upper tolerance limit of 6 per cent.

The latest reading has strengthened concerns about the possibility of monetary tightening, with several economists anticipating a potential rate hike at the RBI’s December policy meeting. Market participants will closely assess the implications of higher inflation for borrowing costs, liquidity and economic growth.

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Business

FII inflows, Nvidia earnings, oil prices among key factors to drive stock market next week

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Indian stock markets are likely to remain volatile next week as investors track foreign institutional investor (FII) flows, crude oil price movements, Nvidia’s quarterly earnings and changing interest rate expectations.

After a spectacular rally that pushed the Sensex and Nifty higher for 10 consecutive sessions, benchmark indices witnessed some profit booking towards the end of last week. However, sustained foreign inflows and resilient corporate earnings helped markets retain their weekly gains.

The Sensex declined 319 points to close at 81,592 on Friday (November 13), while the Nifty slipped over 155 points to settle at 25,144, snapping a three-session winning streak.

The correction came amid renewed concerns over global AI-related trade, rising crude oil prices and expectations of tighter monetary policy following a sharper-than-expected increase in domestic inflation.

One of the biggest factors influencing market sentiment next week will be the continuation of FII buying. Foreign investors remained net buyers of Indian equities for the tenth consecutive session on Friday, purchasing shares worth Rs 5,736.55 crore, according to provisional NSE data.

Crude oil prices will also remain on investors’ radar as geopolitical developments in the Middle East continue to create uncertainty over global energy supplies.

While comments from US President Donald Trump suggesting that the Iran war was effectively over initially eased concerns and triggered a decline in oil prices, fresh attacks on Saudi energy infrastructure and disruptions to shipping through the Strait of Hormuz led to a rebound.

Brent crude is currently hovering near $96 per barrel. Any further rise in oil prices could weigh on India’s macroeconomic outlook, inflation and corporate margins, while a sustained decline may support market sentiment.

Global technology stocks will also be in focus as investors await Nvidia’s quarterly earnings announcement scheduled for Tuesday (November 17).

The chipmaker’s results and management commentary could influence sentiment around the global artificial intelligence trade.

Any sharp movement in AI-related stocks may have an impact on Indian equities, particularly technology shares, as investors assess the implications for global growth and the competitive positioning of Indian IT companies.

Meanwhile, rising inflation has brought interest rate expectations back into focus. India’s retail inflation accelerated to 6.09 per cent in October from 5.54 per cent in September, breaching the Reserve Bank of India’s upper tolerance limit of 6 per cent.

The latest reading has strengthened concerns about the possibility of monetary tightening, with several economists anticipating a potential rate hike at the RBI’s December policy meeting. Market participants will closely assess the implications of higher inflation for borrowing costs, liquidity and economic growth.

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Business

US flight disruption: Air India advises passengers to check latest status

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New Delhi : Air India on Saturday advised passengers to check the latest status of their flights and plan their journey to the airport accordingly, amid massive disruption at the US airports. The Federal Aviation Administration (FAA) lifted a nationwide ground stop that had halted departures at US airports after a communications failure, though airlines warned that disruption and cancellations could continue.

“A nationwide ground stop is currently in effect across the US due to communication outages affecting air traffic operations. As a result, departures from airports across US are impacted, with possible consequential disruptions to Air India flights to and from the US,” Air India said in a statement posted on X. “Our teams continue to closely monitor the situation and will share updates as available,” it added. The cancellation of US flights happened after a communications problem affected air traffic operations. The notice announcing the cancellation did not specify the cause of the failure or say that airline schedules had returned to normal.

Earlier, the FAA’s Air Traffic Control System Command Center said the ground stop remained in effect across a large portion of the country, although some coastal facilities had been able to release international departures. In an update, American Airlines said some flights from certain airports were beginning to receive clearance to depart. At that point, most departures remained paused, and the airline expected further disruption, including unavoidable cancellations. American advised customers to check their flight status and review its travel alert for options. Its warning was issued before the FAA’s cancellation advisory. Homeland Security Secretary Markwayne Mullin told reporters earlier that officials had acted as a precaution following a telecommunications outage affecting the FAA. “There is no indication as of yet that this was a nefarious attack,” he said at the time. That preliminary assessment did not rule out a cyberattack.

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